(AFP Photo)
By Lamia Nabil
Board of Directors elections for the Egyptian Exchange (EGX) will take place on 17 June, confirmed head of the EGX Mohamed Omran.
“The call for nominations will be on 12 May, with the final decision on candidates for the race announced on 9 June,” said Omran.
The current board of directors’ term expires on 30 June, with all listed companies on the EGX having the right to vote.
The EGX board of directors has nine members. The EGX is responsible for electing five of them as representatives of either listed or brokerage companies, as well as small and medium-sized enterprises which will be represented for the first time on the new board.
The other three members will be representatives of the Central Bank of Egypt (CBE), the Egyptian Financial Supervisory Authority (EFSA), and Misr for Clearing Depository and Registry (MCSD).
According to a Monday EGX statement, the chairman and vice-chairman of the board will be selected by the prime minister.
Omran underlined the EGX’s keenness to ensure there is no conflict of interest in the election process. “No group [listed or securities companies] can nominate more than one candidate,” he said. “Membership of the EGX board requires exclusivity between EGX board membership and either board membership of MCSD or board membership of the Investor Protection Fund.”
“The stock market’s current board has witnessed significant contemporary events which have negatively impacted market indicators,” said Omran at press conference held on Monday. “These include the global financial crisis, the European debt crisis, the revolution, and the political transformation that is still taking place in Egypt now.”
During the conference, Omran highlighted some of the issues which the current board had dealt with, such as surveillance systems development, crisis management systems development, and dealing with issues such taxes.
The incoming board of directors’ term will last until 2017.
