Corporate Governance in Egypt: Implementation phase€¦ · Corporate Governance in Egypt:...
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Corporate Governance in Egypt: Corporate Governance in Egypt: Im plem entation phase Im plem entation phase Presented by Presented by Maged Maged Shawky Shawky Sourial Sourial Deputy Chairman Deputy Chairman Cairo & Alexandria Stock Exchanges Cairo & Alexandria Stock Exchanges February 2005 February 2005
Transcript of Corporate Governance in Egypt: Implementation phase€¦ · Corporate Governance in Egypt:...
Corporate Governance in Egypt:Corporate Governance in Egypt:Im plem entation phaseIm plem entation phase
Presented byPresented byMagedMaged ShawkyShawky Sourial Sourial
Deputy ChairmanDeputy ChairmanCairo & Alexandria Stock ExchangesCairo & Alexandria Stock Exchanges
February 2005February 2005
11RO SC ExerciseRO SC Exercise
CG ’01& ’03A& A
22Listing & delisting Listing & delisting
rulesrules
33Creating incentive Creating incentive
using m arket m echanismusing m arket m echanism
44N onN on--m arket incentivesm arket incentives
& education& education
recommendations
Mar
ket
disciplin
eCreating culture in the management
Eva
luat
ion
The ProcessThe Process
23234848TotalTotal
0022N ot O bservedN ot O bserved
2266M aterially not M aterially not observedobserved
55D oesn’t ExistD oesn’t ExistPartially Partially O bservedO bserved
11112626Largely Largely O bservedO bserved
551414O bservedO bserved
2003200320012001PrinciplePrinciple
11--Com pliance with O ECD PrinciplesCom pliance with O ECD Principles
www.worldbank.org/ifa/rosc & www.cma.gov.eg
22--Listing & Delisting rulesListing & Delisting rules
Corporate Governance in Listing & D elisting Rules:Corporate Governance in Listing & D elisting Rules:
Business contracts between the company and its subsidiaries and/or any (Art. 4).
Ownership structure of the issuer (for cross-holdings and indirect controls) (Art. 4).
All transaction between the issuer and any of its shareholders (Art. 4).
The establishment of an audit committee, structure and its responsibilities (Art. 7).Comprehensive Disclosure requirements: material events, related parties transactions, BOD transactions …etc (Art. 12-19).
22--Listing & Delisting rules (cont’d)Listing & Delisting rules (cont’d)
The financial statements to be prepared in accordance with EAAS, and should be provided quarterly & annually to the exchange accompanied by the auditors’report (Art. 20-23).
www.egyptse.com
772
Number of Listed Companies vs. Market Capitalization
-
200
400
600
800
1,000
1,200
1,400
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Num
ber
of C
ompa
nies
0
50
100
150
200
250
LE
Billion
Number of listed companies Market capitalization
Enforcem ent & Im pact on N um ber Enforcem ent & Im pact on N um ber of Listed Com paniesof Listed Com panies
33--Incentives by Incentives by creating m arket m echanismcreating m arket m echanism
Criteria Criteria for considering for considering Stocks as the Stocks as the m ost activem ost active
Q ualifiedQ ualifiedFor noFor no--price lim itprice lim it
Trading Trading
M ost liquidM ost liquid&&
M ore ReflectiveM ore Reflective
During the period Jan' 04- Jan ' 05
Total value
traded
60%
The no-lim
com panies
40%
4 (A)4 (A)--N onN on--m arket incentivesm arket incentives
Establishing Institute of Directors:Establishing Institute of Directors:ArabizedArabized Curricula Curricula
Drafting Code of Corporate Governance: Drafting Code of Corporate Governance: To be adopted by the ExchangeTo be adopted by the Exchange
4 (B)4 (B)--EducationEducation
Thank YouThank You
