 |
 |
 |
 |
| Search |  |
 |
 |
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Legal Affairs Committee
Corporate Governance: Responsibility and Liability of Board Members under Egyptian Law A meeting of the Legal Affairs committee on December 23, 2002 involved a discussion about corporate governance conducted by Cairo University law professor Samiha El Qalyoubi, who is also a former member of the Shura Council and an attorney before the Court of Cassation. El Qalyoubi focused on the responsibilities and liabilities of board members under Egyptian law. Whether board authority is absolute or has limitations within the company framework is a source of legal debate, Qalyoubi said, as is the level of liability board members face, be it absolute or partial. Committee members noted that borrowing and credit are dangerous responsibilities for boards, and discussed the division of liability between a company's shareholders and board members. Discussions also covered the legalities surrounding a board's contract with the company, the implications of being a board member in several companies, and rules surrounding general assembly meetings. Draft Anti-Trust and Competition Law The Marketing and Legal Affairs committees held a joint breakfast briefing on October 1 at the Cairo Marriott to discuss the draft Anti-Trust and Competition Law. The guest speakers were Hatem El Karanshawy, dean of the Faculty of Commerce at Al Azhar University and senior advisor to the Prime Minister, and Hani Sarie El Din, associate professor of commercial law, Cairo University, and senior partner at Shalakany Law Office. El Karanshawy stated that the government, private sector representatives and lawyers had been working on the law for over six years, studying all its implications and consequences. The law is needed primarily for two reasons: to smooth Egypt's transition to a market-based economy; and because of the prevalence of incidents where private sector players have entered into arrangements to control prices, violating proper entry rules and degrading the quality of production. There are, however, two sides to the argument, he said. First,
there is the view that a law like this in a country like Egypt,
a small emerging economy, will only hinder private sector activity.
Further, the market is supposed to be capable of rectifying itself.
The counter argument is that once "default bodies" exist,
they will be difficult to remove, so it is better to start regulating
from the beginning. Sarie El Din took over from there, explaining that the draft law represented a merge of views between lawyers and economists. The proposed law arises from a need to protect public interest and Egyptian consumers, he said. But there have been several objections -- first from Egypt's trading partners, who fear that the law would mean increased government interference in their business activities. Another critique is that the law only covers the formal sector, overlooking Egypt's sizable informal economy. There have also been assertions that that neither the government nor the private sector possess the required expertise to implement the law, which might create more corruption and hinder business. Yet most private sector investors today view the law as a necessary tool for regulating market activity, Sarie El Din said, adding that Egypt, along with other developing countries, was also under pressure from the WTO to pass an anti-trust law as soon as possible. Multinational corporations, too, are interested preventing unfair practices in the domestic market, he said. The final draft was issued by the Ministry of Supply and is currently in the last process of review by a committee of the National Democratic Party (NDP). The government has put the law on its agenda, and the law should go to parliament in the coming months, Sarie El Din said. The law is straightforward, with only 28 sections, he added. It does not contain prison terms for monopolists, the maximum penalties being either fining or the termination of business. Questions from the audience mostly revolved around the implementation process. As for whether exceptions would be made for some monopolies, the answer was affirmative. Certain "strategic entities," such as those involved with water, electricity or the oil industry, will receive preferential treatment. But regarding whether the law would protect a government monopoly, the response was a definite no, with both speakers insisting that public and private monopolies would be treated the same way. Draft e-signature law - View presentation Dr. Sherif Hashem, director of the Information Society Development Office at the Ministry of Communications & Information Technology, spoke in June 23 about Egypt's draft law for e-signatures, which is now in the final stages of preparation. Hashem began by presenting figures for fixed-line teledensity, Internet use and e-business projections worldwide, showing the Middle East and Africa lagging behind other regions. In implementing the National CIT plan, the ministry must address the issues of computer and Internet access as well as language, basic computer skills and technical expertise, he said. Key issues affecting the e-signature draft, according to Hashem, include cyber law, customs nad taxation procedures, intellectual property rights and on-line security, as well as banking infrastructure, insurance and e-education. He said that questions had been raised during the writing of the draft with regard to what agencies would oversee e-commerce, how the government could make use of e-commerce procedures and how small and medium enterprises could benefit from the law. The process of drafting the law started in 1999 with a committee including representatives of seven ministries. The private sector was also involved in the drafting, Hashem said, adding that the committee had weighed the merits of amending existing laws versus creating a new one. Currently, four subcommittees -- covering e-contracting, e-payment, customs & taxation, and cyber crime issues - are engaged in detailed follow up to the drafting process. "The Medical Insurance Draft Law" Nabil El Mehairy, chairman of the surgery department at Ain Shams University and former chairman of the Medical Insurance Institute, spoke on March 17 at the Cairo Marriott about the medical insurance draft law. He kicked-off by speaking about the merits of insurance in medical care. A third party, such as an insurer, can protect patients by making sure they receive good treatment at reasonable prices, he said. Health insurance, El Mehairy said, can play a major role in improving the overall health of society. With better care available to a larger portion of the population, instances of disease would drop, creating better living conditions and a more productive society. But health insurance's impact will be minimal in Egypt unless the health system is thoroughly reorganized, he said. Doctors and nurses have to be paid more, students need better quality instruction, and facilities must be improved. There also needs to be better communication between doctors and the health ministry with regard to specifications on pharmaceuticals. Another major issue is management. While the necessary spirit for good management exists, there is still a need for training to raise standards. This would lead to less confusion for patients seeking medical attention and would streamline the acquisition of medicines. Solid financing will be needed to get a good health insurance system going. El Mehairy suggested that Egypt follow the French model, in which all members of society pay a certain percentage of medical costs. However, before such a program is implemented, detailed studies must be carried out, he said. Wake Up Marketers, The Intellectual Property Law is Heading Your Way- January 22, 2002 The Legal Affairs & Marketing committees invited marketing specialists to a presentation on January 22 about the implications of the forthcoming Intellectual Property Rights (IPR) law for their industry. The two guest speakers at the meeting were Hussein Y. Amin, professor at the department of journalism and mass communications at AUC and member of the board of trustees at the Egyptian Radio & Television Union (ERTU), and Hossam Loutfi, professor of civil law at Cairo University, Beni Suef Law School, and expert at the World Intellectual Property Organization. Amin discussed several issues related to IPR theft and how international organizations are working to find solutions to it. He compared Egypt's broadcasting system with that in the United States and also discussed various ways that governments enforce IPR laws. He also spoke about the committee formed at the ERTU to address the impact of the IPR law on the media and advertising sector. "Penalties of the law are not enough," Amin said, noting that "Egyptian episodes are not protected in the States, for example." He advised local advertising agencies to protect their creative ideas and to refrain from stealing ideas from international agencies. Next, Lotfi briefed attendees about the history of IPR legislation in Egypt. Emphasizing the difference between an idea itself and the expression of an idea, he examined trademarks, patents on designs, and copyrights on passages from films or songs. He also explained how to apply for consent before using such passages in ads. The entities subject to prosecution in case of legal violations are agents and broadcasters, he said. Both the speakers urged marketers to make sure that all copyright measures on their ads were upheld by their agencies. |
|
Site Developed and Maintained by the Business Information Center of AmCham Egypt Copyright©2008 American Chamber of Commerce in Egypt |
|||
 |
|||