House Economics Committee looks into Companies Act
LEGISLATION WATCH- The House of Representatives’ Economic Affairs Committee has started looking into amendments to the Companies Act, Ahram Gate reports. While the most visible change to the law seems to be allowing the establishment of sole proprietorship companies, the law also includes amendments to corporate governance regulations. The Ismail cabinet has been tight-lipped about the amendments since approving them back in August. One article, which apparently gives the board of directors the right to suspend a member if they “divulge corporate secrets,” has kicked up quite a debate in the committee, Al Wafd reports. Many committee members have objected to the article, saying it could encourage companies to be less transparent.
The committee’s session on the Companies Act apparently segued into a debate on what some members claim to be the slow implementation of the Investment Act. MP Amr Ghallab was particularly critical of the investor centers not being ready yet, demanding that there should be a deadline for when they will be ready. As we noted yesterday, the committee wants to question Investment Minister Sahar Nasr over “conflicts” between different ministries, which has delayed the establishment of the center and the release of the ministry’s investment map of 600 projects.