Egypt’s Minister of the Public Business Sector Hisham Tawfik announced that parliament’s economic affairs committee has approved in principle the amendments to law no.203 of 1991 that regulates the public business sector and its companies.
Tawfik said that the law witnessed amendments to 16 articles, the repeal of four articles, and adding eight articles and paragraphs.
The minister said that the new amendments include setting new rules for forming holding company boards and company affiliates, expanding the powers of general assemblies regarding the assessment of board performance, stimulating employees and boards to upgrade their performance and increase the companies’ profits, and increasing transparency and disclosure levels in the companies that belongs to the sector.
In a statement, Minister Tawfik said that the public business sector law has not witnessed changes since its issuance in 1991 despite the shifts that Egypt’s economy has witnessed in that period, which should be met with reforming regulations for the sector’s companies.
He added that the new amendments aim to improve the sector’s companies, upgrade their performance, financial structures, management, and making the ultimate use of their assets to ensure their sustainability and to increase their contribution to the national economy, according to the statement.
They also target uplifting the companies’ competitiveness in domestic and external markets, according to the statement.
The new amendments give the holding companies and their affiliates the right to take part in founding new companies, according to the statement.
The amendments also allow workers to have a share of the annual profits disbursed in cash with a minimum of 10 percent and not exceeding 12 percent, according to the statement.