The Financial Regulatory Authority’s (FRA) Board of Directors has agreed to amend the rules for registering and writing off companies with listed securities on the Egyptian Exchange (EGX).
The amendment, which was agreed upon at a recent board meeting, was made to support the corporate governance process within companies.
The amendment covers the formation of an audit committee with at least three members of the non-executive board of directors. The committee may include members from outside the company, so long as the majority of committee members, including its chairman, are independent. All individuals must also be known for their integrity and non-partisan stance.
In all cases, the committee members must be known for their competence and experience in the company’s field of work. At least one committee member must have experience in finance and accounting, and the committee may seek the assistance of an auditor or whoever it deems appropriate to attend its meetings.
FRA Chairperson Mohamed Omran said the authority’s board of directors has ensured that the amendment on governance process extends to companies operating in the securities field. It also covers those licensed to practice real estate financing, financial leasing and factoring, consumer finance, and Microfinance, based on international best practices in corporate governance.
According to that amendment, company boards are allowed to include members from outside the company when forming the audit and risk committees to ensure impartiality. This aims to maintain objectivity when considering and discussing issues presented to the committees.
Omran added that the FRA has given non-banking financial activity companies and those with EGX-listed securities until 31 December 2020 to reconcile their decision. The move comes in accordance with the decisions issued on the subject.