Despite the GAFI’s objection; the office succeeded in passing resolution with dismissing managing shareholder without neither numerical majority nor approval of three quarters of the capital. One of Badawy Law Office’s achievements in the corporate area, which represents a legal precedent as per the statement of the General Authority For Investment (GAFI), is represented on obtaining, in favor of one of its clients affiliated to a global group of companies,
Mr. Ossama Badawy, the Managing Partner, stated that the court’s ruling obliged BLOM Bank to compel such amount as a result of the bank’s failure to report, during the legal deadline, following the seizure that was imposed by the office in favor of its mentioned client on one of the bank client’s money under the possession of the bank implementing to the arbitral award issued from The Arbitration Centre of Stockholm Chamber of Commerce.
A commentary to the guarantee provided by article (3) of the Egypt’s new investment law no. 72 of 2017: by the same law article that emphasizes on the investment’s non-subjection to any decision carrying discrimination, the legislator adopts the possibility of granting the foreign investor special privilege in treatment under reciprocity … although, this implies inadmissible discrimination against the national investor, it contains reasonable exaggeration to reassure the foreign investment.
The new Investment Law no. 72 of 2017 distinguished among four of the investment systems; the internal investment system, the investment zones system, the technological zones system, and the free zones system. The distinguish point is obviously represented on that the incentives allocated to the first three systems are different and less than the incentives granted to the last system called “the free zones system”. Such last system that kept, under the new law, the same privileges that were adopted under the previous law, representing on exempting its goods whether exported to or imported from abroad from the customs, added value tax, and the other taxes and charges.
By issuing law no. 7 of 2017, the import regulation in Egypt has been amended from many aspects. The most important of all those aspects are represented in requiring a business volume of 5.000.000 LE which must be reached by each company working/will work in importation and must be proved by the company’s tax declaration, in requiring a minimum capital of 2.000.000 LE for the Limited Liability Companies or 5.000.000 LE for the Joint Stock Companies, though, just a capital of 15.000 LE was required before the issuance of the legislative amendment, in allowing the foreigners to own a percentage not exceeding 49% of the company’s shares, though, a percentage of 100% of the Egyptians’ ownership was required, and in increasing the value of the insurance required to be 200.000 LE, though, it was just 50.000 LE before the issuance of the legislative amendment.
