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Thursday, 23 January 2020

Cabinet to begin discussing Public Enterprises Act changes next week

LEGISLATION WATCH- The Madbouly Cabinet will begin discussing the Public Enterprises Act amendments next week, Public Enterprises Minister Hisham Tawfik said, told Al Mal. If passed, the 26-article bill would remove listed companies in which the government owns a 75% stake from the legislation, and bring them within the scope of the Companies Act. It would also give general assemblies more power to oversee company boards, and remove boards that deliver poor results at any time during their terms, among other stipulations.

Expanding the purview of general assemblies was apparently met with some early disagreement, Tawfik noted. Those objections have weak grounds as it’s necessary to be able to “change incompetent management,” the minister said in response. Tawfik didn’t specify who spoke against this provision.

What happens next? If cabinet approves the proposed changes, they will then head to the State Council (Maglis El Dawla) for review before entering the House of Representatives for a final vote.

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