The Egyptian cabinet today approved the proposed amendments submitted by the Egyptian Exchange (EGX) related to the chairmanship tenure of the EGX to become four years and may not be renewed more than once. The decision was attributed to the regulatory and supervisory aspects of the EGX, which are similar to the Egyptian Financial Supervisory Authority (EFSA), which is the highest capital market supervisor.
Mohamed Omran, chairperson of the EGX, said that the cabinet approved the amendments, which will be submitted to the president for final approval.
Omran told Daily News Egypt that the cabinet set the tenure of chairmanship to four years, applicable for a one-time renewal, abolishing the previous permit of several tenures.
He added that the cabinet also amended the seats of small and medium enterprises (SMEs) in the board of directors of the EGX to represent the NileX, without restricting the size of the capital of companies.
It is noteworthy that candidates who wish to run for the board of directors of the EGX have begun sending their applications on Sunday. The board is composed of 11 representatives, including six appointed members, a chairperson, a deputy, two experts, a representative from the Central Bank of Egypt (CBE), and a representative from the Federation of Egyptian Banks. There are also five elected candidates: three representatives of securities companies, one of listed companies, and one from the NileX.
Moreover, the cabinet approved the amendments to the law regulating the nomination for EGX board seats, including the amendment of the controls of the NileX nomination for the seat, through abolishing the maximum capital required for the companies, which was set in the previous mandate at EGP 25m.
The EGX administration has called to organise the board elections on 22 June. The current session is set to expire by the end of June.
Ehab Saeed, the managing director of Osool Securities, said that he intends to run for the brokerage seat. Most board members also said they will run again.
Current EGX board member Hashem Elsayed said he intends to run again for the listed companies’ seat, as a representative of the Egyptians for Housing and Development company.
Mansour El Barbary, chairperson, CEO, and managing director of BIG, said he intends to run for the NileX seat.
He added that he is putting together a programme for the companies, in which he intends to increase their number on the NileX.
Managing director of MB Ahmed Bahaa Shalaby also said he will run for the NileX seat.
Managing director of Genial Tours, Hussein Sadek, said that he intends to run to help ease the difficult conditions of NileX and the low liquidity on it, which undermines its nature of being a main financing tool.
The current board includes Mohsen Adel, Shawkat El Maraghy, and Soliman Nazmy Gerguis as representatives of brokerage firms, as well as Hashem El Sayed as a representative of enlisted companies.