FRA takes measures to confront coronavirus

CAIRO – 16 Mach 2020: The Financial Regulatory Authority (FRA) called on companies to take decisions to cope with the precautionary measures applied by the Egyptian state to confront the emerging coronavirus.

Chairman of FRA Mohamed Omran asked listed companies on the Egyptian Exchange and companies operating in the field of non-banking financial activities, to adhere to preparing a system for the remote voting of shareholders, who are entitled to participate and vote in the General Assembly.

Omran also requested to make the substitution mechanism available, where one of the custodians authorized to practice the activity, or one of the registered owners vote, in accordance with the provisions of the Central Depository and Registry Law of Securities. The voting form should make clear all the topics presented on the agenda of the General Assembly and the shareholder should be notified before presenting each by agreeing, rejecting or abstaining from voting.

“The precautionary measures taken by all Egyptian agencies to confront the emerging virus drove us to activate some of the options provided by the law of joint stock companies, limited partnership companies, limited liability companies and single-person companies issued by Law No. 159 of 1982. These companies are permitted to use any of the electronic systems to view the items of the ordinary or extraordinary general assembly meetings, allowing the shareholders entitled to participate and vote to remotely vote on these items,” Omran clarified.

This step comes days after Egypt’s government banned all large community events and gatherings until further notice to prevent the spread of coronavirus (Covid 19).

Discovered in late 2019 in China, the virus has spread to around 117 countries and regions. Earlier this week, the World Health Organization (WHO) characterized the disease as a pandemic.