Corporate Governance Country Assessment : Arab Republic of Egypt
Egypt's corporate governance system is framed by French civil law for corporations. Sharia law has no direct influence on corporate governance. Anglo-American influence is prevalent in the securities depository law and the new capital markets...
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| Format: | Corporate Governance Assessment (ROSC) |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2001/09/6569489/report-observance-standards-codes-rosc-corporate-governance-country-assessment-arab-republic-egypt-report-observance-standards-codes-rosc-corporate-governance-country-assessment-arab-republic-egypt http://hdl.handle.net/10986/14992 |
| Summary: | Egypt's corporate governance system
is framed by French civil law for corporations. Sharia law
has no direct influence on corporate governance.
Anglo-American influence is prevalent in the securities
depository law and the new capital markets law shortly to be
introduced to Parliament. There is one stock exchange with
two trading floors: The Cairo and Alexandria Stock Exchange
(CASE) which has three tiers. Eighty seven percent of listed
companies are trading on the second or third tier
(unofficial exchange). Interest in corporate governance is
rising - the draft capital markets law includes a chapter on
minority shareholders rights. This Report on the Observance
of Standards and Codes benchmarks the Egyptian corporate
governance system against the OECD Principles of Corporate
Governance; according to the Financial Stability Forum, one
of the twelve core standards underpinning the international
financial architecture. The assessment highlights a number
of areas where Egypt's corporate governance system
needs strengthening. These can be grouped under six
headings: disclosure of ownership and control structures;
disclosure of financial and non-financial information;
training and capacity building for regulators and the
private sector; role and effectiveness of shareholders'
meetings; practices of boards of directors; and,
professional conduct of auditors. |
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