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Editorial

Press releases and law firm thought leadership

This page is dedicated to keeping readers informed of the latest news and thought leadership articles from law firms across the globe.

If your firm wishes to publish press releases or articles, please contact Shehab Khurshid on +44 (0) 207 396 5689 or shehab.khurshid@legalease.co.uk

 

EGYPT'S NEW BANKRUPTCY LAW

May 2018 - Finance. Legal Developments by Riad & Riad.

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On 19 February 2018, a new law no. 11/2018 was issued regulating the restructuring, preventive reconciliation and bankruptcy in Egypt (the" Bankruptcy Law"). The law entered into force as of 22 March 2018.

The law introduces for the first time an out-of-court restructuring system which helps troubled companies reorganize their business. In the meant time, courts are given the authority to enforce a restructuring plan if a consensual solution is not reached. Also a new court supervised mediation system is introduced.

EGYPT'S NEW LABOR UNION LAW

April 2018 - Employment. Legal Developments by Riad & Riad.

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A new labor union organizations law was issued last December under Law No. 213/2017 (the “Law”) replacing previous labor union organizations law No. 35/1976. The Law explicitly provides for the prohibition of establishing labor unions based on religious or political grounds or incorporating discriminative rules in the articles of association of such organizations.

SUBSTANTIAL AMENDMENTS TO EGYPT'S COMPANIES ACT

April 2018 - Corporate & Commercial. Legal Developments by Riad & Riad.

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A new law is issued in Egypt to amend the Joint Stock Companies, Partnerships Limited by Shares and Limited liability Companies, known as the Companies Act no. 159 of 1981 (the "Law"). The amendments are effective as of 17 January 2018.

This report will summarize the main amendments introduced.

The New Bankruptcy Law no. 11 of the year 2018

The New Bankruptcy Law no. 11 of the year 2018

 

On February 19, 2018, the Egyptian Government set a new milestone in the

investment plan by passing Bankruptcy Law no. 11/2018 in a significant move to

encourage more local and foreign investment and a part of the Government

noticeable efforts in the last few years to revive the economy and the investment

environment by introducing new laws regulating entering and exiting the

Egyptian market.

The New Law is considered the first bankruptcy law in Egypt, for instance, it

introduces for the first time the concepts of mediation and reorganization, giving

both the debtor and the creditor a higher degree of flexibility in dealing with

debts. It also regulates the penalties by including a whole chapter explaining and

organizing the same unlike the previous legislation.

The absence of a law organizing the bankruptcy was one of the main factors for

which Egypt was considered as a high-risk country for investment. Thus, it was

crucial to issue an effective law to organize and regulate the bankruptcy.

 

The new Bankruptcy Law introduces the following new concepts:

 

• Reorganization System

- The Reorganization System is a new mechanism introduced by the Bankruptcy

Law to reorganize the administrative and financial business of the non-viable

companies through a plan including the ways to get over the financial and

administrative crises.

- The Reorganization System is open for any merchant with a minimum capital of

one million EGP as long as his business remained active for two years prior to the

submission of the application of reorganization and did not commit any

fraudulent act.

- In case of applying for reorganization, the bankruptcy as well as the preventive

settlement requests shall be suspended until the reorganization request is

examined.

- The merchant shall continue in managing his business normally during

implementing the reorganization plan which is determined by five years; with the

possibility of appointing an assistant to the merchant if required.

 

• Mediation

- The Bankruptcy Department has been established by virtue of the Bankruptcy

Law and initiating the mediation procedures is considered as one of its significant

competencies.

- The Department works on settling the disputes between the debtors and creditors

amicably prior to commencing the procedures of declaration of bankruptcy.

 

• Penalties

- The legislator under the Bankruptcy Law is trying to create a balance between the

act committed and the penalty prescribed. Hence, the Law differentiated between

the fraudulent and the non-fraudulent bankrupt in terms of the penalty prescribed.

- The fraudulent bankrupt is penalized by fine and imprisonment from three to five

years; while the non-fraudulent bankrupt is penalized by fine only without

imprisonment unlike the old rules which did not consider whether the bankruptcy

involved fraud or not.

In the light of the above mentioned, it is clear that the new Bankruptcy Law shows

the Egyptian Government efforts to promote the national economy by encouraging

foreign and national investments and solving the financial crisis of investors and

facilitating the entry and exit of funds from the Egyptian market smoothly under a

solid legal system, delivering a message of reassurance to the foreign and local

investors about the possibility of liquidation or bankruptcy without being subject to

imprisonment.

Moreover, it eliminates the barriers and obstacles that may face the creditors in

order to obtain their rights.

The new law assists in reducing the accumulation of cases in the courts by creating

a mediation system for the settlement of commercial disputes by convergence of

views between the parties

Egypt's New Investment Law

September 2017 - Finance. Legal Developments by Tahoun Law Office .

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Egypt's New Investment Law

In response to the need of attracting more foreign and domestic investors, the Egyptian Government has promulgated the New Investment Law No. 72 of the year 2017.

The Law came into force on the 1st of June 2017, while the Executive Regulation of the same Law has been accepted by the cabinet and presently is being revised by the Egyptian State Council.

Draft amendments to the Egyptian Competition Law: populism or sound policy?

Egyptian Competition Law No 3 of 2005 is likely to be amended very shortly. The contemplated amendments, now in a late stage of discussion and expected to be imminently issued as law by the ruling military council, are aimed at:

Egypt Chapter – Merger Control Review edited by Ilene Knable Gotts

No merger control or approval regulation currently exists in Egypt.2 Therefore, the focus of this chapter will not be the peculiarities of Egypt's past experience but rather the prospective peculiarities of the Egyptian merger control framework.

The Egyptian Arbitration Law

April 2007 - Crime. Legal Developments by Kosheri, Rashed & Riad .

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THE EGYPTIAN ARBITRATION LAW Egypt introduced its first specific Arbitration Law in 1994 by adopting the UNCITRAL Model Law with very limited modifications. 

Egyptian Anti Monopoly Law

The Egyptian Law of Protection of Competition and Prevention of Monopoly Practices was promulgated by Law No. 3 of 2005 and entered into force on 16 May 2005.

Industrial Designs and Drawings

Industrial designs and drawings enjoy protection for ten years starting from the date of application for registration in Egypt, and the protection is renewable for five years.

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