By: Advisor / Mohamed Mabrouk

Is Your Company Registered Under the Central Depository and Registry System? | Legal Alert for Companies in Cairo – Mohamed Mabrouk

📞 Contact & Appointment Information

Mr. Mohamed Mabrouk

Founder and Chairman of Arkan for Law and Legal Consultations

Phone: 01055144010

Email: arcanweb.com

Office: Cairo – Egypt

Working Hours: Sunday – Thursday from 9:00 AM to 5:00 PM, and Friday from 10:00 AM to 2:00 PM.

Online Legal Consultations: Available.

Important Legal Alert for Company Board Chairmen and Executive Directors ⚖️

Is Your Company Registered Under the Central Depository and Registry System?

A reminder to all companies, whether subject to Companies Law No. 159 of 1981, Investment Law No. 72 of 2017, or Public Business Sector Law No. 203 of 1991; ...

Is Your Company Registered Under the Central Depository and Registry System?

If you are a company chairman, executive director, or responsible for the company's legal and financial affairs, it is important to determine whether the company is subject to the Central Depository and Registry System and the related legal obligations. Mohamed Mabrouk, a corporate lawyer in Cairo and founder of Arkan for Law and Legal Consultations, provides specialized legal consultations to companies regarding the legal and regulatory obligations related to their shares and securities.

This includes companies subject to the provisions of Companies Law No. 159 of 1981, companies subject to Investment Law No. 72 of 2017, as well as companies affiliated with the public business sector under the applicable legal framework. Therefore, reviewing the company's legal position regarding the Central Depository and Registry of Securities is not merely an administrative procedure, but may constitute an important part of complying with the relevant legal and regulatory requirements.

If you are looking for a corporate lawyer in Cairo to review your company's legal position or obtain legal advice regarding shares, securities, and related procedures, consulting a lawyer specialized in commercial and corporate law can help identify the required obligations and avoid procedural errors.

What Is the Central Depository and Registry System?

The Central Depository and Registry System refers to a set of procedures and mechanisms governing the registration, safekeeping, and settlement of securities in accordance with the applicable legal and regulatory rules.

This system is particularly important for companies that have securities or shares requiring processing under the Central Depository and Registry System. These procedures help regulate securities ownership, establish ownership records, and facilitate ownership transfers and settlement in accordance with the applicable rules.

Therefore, company management should review its legal position and ensure compliance with the requirements applicable to it rather than waiting for a legal or procedural issue to arise during securities transactions.

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Are All Companies Required to Use the Central Depository and Registry System?

Companies cannot all be treated as having the same legal status. The requirements may vary depending on the company's legal form, the nature of the securities it issues, its trading system, and the applicable legal and regulatory rules.

Therefore, each company's situation should be subject to a detailed legal review.

Among the key legal frameworks that may be relevant to companies operating in Egypt are:

• Companies Law No. 159 of 1981.

• Investment Law No. 72 of 2017.

• Legislation and regulations governing public business sector companies.

• Rules and decisions governing securities transactions.

• Rules and procedures related to central depository, registry, and settlement.

This is where the role of a corporate lawyer becomes important in reviewing the company's legal position and determining the procedures that should be followed based on its business activities and legal structure.

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Companies Subject to Companies Law No. 159 of 1981

Companies Law No. 159 of 1981 is one of the key pieces of legislation regulating various forms of companies in Egypt, including joint-stock companies, limited liability companies, partnerships limited by shares, and other forms governed by the law.

For companies dealing with shares or securities, management needs to understand the obligations imposed by the applicable laws, regulations, and rules governing their activities.

Therefore, obtaining legal advice for companies before making decisions related to shares, ownership transfers, or the issuance of securities can help determine the correct procedures and reduce legal risks.

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What About Companies Subject to Investment Law No. 72 of 2017?

Investment Law No. 72 of 2017 regulates a number of matters related to investment, company formation, guarantees, incentives, and procedures associated with investment activities.

However, the fact that a company is subject to the Investment Law does not mean that all of its procedures are governed exclusively by this law. Other legislation and regulations may apply depending on the company's nature, activities, and the securities it issues.

Therefore, a corporate lawyer in Cairo can review the company's legal structure and identify the legislation relevant to each procedure rather than relying on a single law separately from the other applicable rules.

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Public Business Sector Companies and the Central Depository and Registry System

Public business sector companies are subject to a specific legal framework. One of the key laws governing them is Public Business Sector Law No. 203 of 1991, in addition to other relevant legislation and regulations.

Companies affiliated with the public business sector must take into consideration their legal nature and the regulations governing their activities when dealing with shares, securities, ownership transfers, or settlement procedures.

Accordingly, determining the obligations related to the Central Depository and Registry System requires an examination of each company's legal position independently.

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Why Should the Chairman Review the Company's Legal Position?

An unclear legal position regarding securities and regulatory procedures may lead to a number of administrative and legal issues.

The key reasons for conducting a legal review include:

 

1. Ensuring Compliance with Laws and Regulations

Reviewing whether the company's procedures comply with the applicable legal and regulatory rules.

 

 

2. Avoiding Procedural Errors

Certain procedures related to securities require specific steps and documentation.

 

 

3. Protecting the Board of Directors

A legal review helps clarify the responsibilities and obligations of company management.

 

 

4. Regulating Ownership Transfers

Ensuring that proper legal procedures are followed when dealing with shares and securities.

5. Reducing Legal Risks

A prior legal review may help identify deficiencies before they develop into a dispute or legal problem.

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What Does a Corporate Lawyer Review?

When a specialized corporate lawyer in Cairo is appointed to review a company's legal position, the review may cover several areas, including:

• The company's legal form.

• The company's incorporation documents and articles of association.

• The nature of the shares and securities issued.

• The ownership structure.

• General assembly and board of directors resolutions.

• Documents related to shares.

• The company's position regarding relevant regulatory procedures.

• Ownership transfers and securities transactions.

• Legal and disclosure obligations, where applicable.

• The compliance of previous procedures with the applicable legal rules.

The nature of the required legal review varies from one company to another. Therefore, it is not advisable to rely on a single standard approach for all companies.

The Importance of Legal Consultation Before Making a Decision

Company boards need to deal with legal matters proactively, particularly when they involve shares, securities, ownership structures, or regulatory procedures.

Legal consultation is not limited to resolving disputes after they occur. It also includes preventive legal review, which helps management make decisions that are more legally secure.

The company's legal advisor can review documents and previous resolutions, determine whether any procedures require correction or completion, and develop a legal framework for future procedures.

Why Choose Mohamed Mabrouk?

Mohamed Mabrouk is the Founder and Chairman of Arkan for Law and Legal Consultations in Cairo. He has more than 15 years of experience in the legal field, with extensive experience in providing legal consultations and managing complex legal matters.

His qualifications include:

• Master's Degree in Law from Alexandria University with an Excellent grade.

• PhD Researcher in Comparative Commercial Law.

• Legal Translation Diploma from the Center for Languages and Translation at Cairo University.

• Egyptian Bar Association qualification.

• Specialized courses in international commercial arbitration from the Cairo Regional Centre for International Commercial Arbitration.

His professional experience also includes providing legal consultations to more than 100 local and international companies, supervising numerous cases in civil and commercial law, and managing a specialized legal team.

When Does Your Company Need a Corporate Lawyer?

A company may need to consult a specialized lawyer when dealing with legal matters related to incorporation, amendments to the articles of association, general assembly or board resolutions, commercial contracts, disputes between partners or shareholders, or transactions involving shares and securities.

Legal consultation also becomes important when there is uncertainty regarding whether the company is subject to the Central Depository and Registry System or the procedures that should be followed based on the company's legal and business structure.

It is preferable to conduct the legal review before making a decision rather than after a problem arises, as preventive legal action is often less costly and less complicated than resolving an existing dispute.

Conclusion

The question "Is Your Company Registered Under the Central Depository and Registry System?" is an important issue that company chairmen, executive directors, and corporate officials should address based on the company's nature, legal position, and the securities it deals with.

Whether the company is subject to Companies Law No. 159 of 1981, Investment Law No. 72 of 2017, or operates within the public business sector framework under Law No. 203 of 1991, determining the applicable legal obligations requires a careful review of the company's actual circumstances and the relevant legal and regulatory rules.

If you are looking for a corporate lawyer in Cairo to review your company's legal position or obtain legal consultation for companies regarding the Central Depository and Registry System, shares, or securities, you can contact Mohamed Mabrouk – Founder and Chairman of Arkan for Law and Legal Consultations.

📞 Contact for Legal Consultations

 

Mr. Mohamed Mabrouk

Arkan for Law and Legal Consultations – Cairo

Phone: 01055144010

Email: arcanweb.com

Online Consultations: Available.