Redemption Of Shares

Redemption of shares, which is the repurchase of a company's own shares from its shareholders, is a complex legal procedure that is governed by specific provisions in the Egyptian Companies Law No. 159 of 1981 (the "Companies Law") and its Executive Regulation No. 96 of 1982. Understanding the intricacies of these provisions is crucial for companies considering redeeming their own shares, as it ensures compliance with applicable laws and safeguards the interests of shareholders and creditors.

• The Companies Law outlines the fundamental principles governing the redemption of shares, including:

1. Redemption Approval: Redemption should only be initiated upon approval from the company's board of directors, which must assess the financial feasibility and strategic rationale for the repurchase;