{"id":1648,"date":"2018-01-25T13:05:24","date_gmt":"2018-01-25T13:05:24","guid":{"rendered":"https:\/\/road9demos.com\/eldib\/?p=1648"},"modified":"2023-10-25T13:06:18","modified_gmt":"2023-10-25T13:06:18","slug":"egypt-latest-amendments-in-companies-law","status":"publish","type":"post","link":"https:\/\/eldib.com\/ar\/egypt-latest-amendments-in-companies-law\/","title":{"rendered":"Egypt \u2013 Latest Amendments in Companies Law"},"content":{"rendered":"

Egyptian Companies\u2019 Law Undergoes Amendments<\/strong><\/p>\n

New amendments were made to the Egyptian Companies\u2019 Law as circulated on January 16, 2018. These new amendments effectively introduce a new type of company in order to promote and ease investment in Egypt. This effort is to update the existing laws by introducing the Sole Person Company with limited liability.<\/p>\n

Sole Person Company<\/strong><\/p>\n

In accordance with the Egyptian legislative reform and with the aim to reach the specification of global investment laws, The Egyptian legislator declared a milestone law No. 4 for the year 2018 amending the Companies law No. 159\/1981 to enhance the investment environment within Egypt. These new amendment laws brought a radical change in the corporates available structure by adding the sole person company to the current structures.\u00a0 The capital sole person company -or the sole partnership in other jurisdictions- is owned by either a natural person or legal entity and is to be incorporated in the form of Limited Liability Company with obligation of appointing legal auditor. The liability of the Sole person Company is limited to its capital only with certain restriction to split between the Company\u2019s capital and the founder\u2019s personal wealth.\u00a0 This limitation on liability encourages investors via retaining their control without great financial risks.<\/p>\n

Benefits<\/strong><\/p>\n

1. Companies can now raise their capital by way of Ordinary General Assembly, excluding companies listed in the stock market. 2. \u00a0Eliminating the lock-up period that spun-off companies (which may now take multiple forms) needed to adhere to before trading their shares. 3. Allowing for electronic attendance and signatures to replace in-person attendance at the meetings of the board of directors.<\/p>\n

Limitations\u00a0<\/strong><\/p>\n

The Sole Person Company may not establish another sole person company or issue shares.<\/p>\n

Recognition of Joint Venture and Shareholders Agreements\u00a0<\/strong><\/p>\n

The amendments allowed the founders to include their own agreement regulating their relationship during the incorporation or after. By this new rule all the Joint Venture and shareholders Agreements signed between the founders can be included in the Company\u2019s bylaws.<\/p>\n

Accumulated Voting power<\/strong>\u00a0The new law grants the shareholders the right to have the accumulated voting power in electing the board member by granting each shareholders number of votes equal to his or her shares. Such votes can be distributed between the numbers of board member candidates\u2019.<\/p>\n

Dividing in existing companies into two or more companies\u00a0<\/strong><\/p>\n

Article 135 added the ability to divide any existing company into two or more companies formed in accordance with the current law but sole person company, after following the required procedures.<\/p>\n

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For more information in regards to these amendments or help in establishing a Sole Person Company please do not hesitate to contact us with any queries at\u00a0our main mail address:\u00a0mail@eldib.com<\/a>\u00a0or our key contacts: Abdel Aziz Zaki, Partner and Head of Corporate Department at\u00a0abdelaziz.zaki@eldib.com<\/a>\u00a0 and\u00a0Mohamed Eldib, Partner at\u00a0mohamed.eldib@eldib.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1648","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/eldib.com\/ar\/wp-json\/wp\/v2\/posts\/1648","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/eldib.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eldib.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eldib.com\/ar\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eldib.com\/ar\/wp-json\/wp\/v2\/comments?post=1648"}],"version-history":[{"count":1,"href":"https:\/\/eldib.com\/ar\/wp-json\/wp\/v2\/posts\/1648\/revisions"}],"predecessor-version":[{"id":1649,"href":"https:\/\/eldib.com\/ar\/wp-json\/wp\/v2\/posts\/1648\/revisions\/1649"}],"wp:attachment":[{"href":"https:\/\/eldib.com\/ar\/wp-json\/wp\/v2\/media?parent=1648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eldib.com\/ar\/wp-json\/wp\/v2\/categories?post=1648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eldib.com\/ar\/wp-json\/wp\/v2\/tags?post=1648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}