Cumulative Voting According To FRA's New Decree

The Egyptian Financial Regulatory Authority (FRA) supervises & regulates all non-banking financial markets and instruments, including capital markets, futures exchanges, insurance activities, mortgage finance, financial leasing, factoring, securitization and microfinance.

Non-banking financial companies are mentioned in Article Two of the Decree No. 53 of the year 2018 which are:

1. Activities of companies operating in the field of securities
2. Insurance, reinsurance or insurance brokerage activities
3. Mortgage finance activities
4. Leasing activities
5. Factoring activities
6. Microfinance Activities

Recently, Decree No. 155 of the year 2018 was issued to amend the voting of the BoD to be cumulative voting in the above-mentioned companies in Egypt. Cumulative voting means that every shareholder shall be given a number of voting equal to the shares he owns to vote for the members of board of directors. In addition, every shareholder shall vote for one or more