CMA LAW: Circular No. (04) of 2022 Regarding the Companies on which a Resolution was Issued Regarding Delisting their Shares from the Exchange

Within the framework of the Capital Markets Authority’s (CMA) continuous endeavor to provide protection to public investors, and in confirmation of its compliance with the provisions of Law No. (7) of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Executive Bylaws and their amendments.

The CMA draws the attention of all the companies on which a resolution was issued regarding delisting their shares from the Exchange to the importance of complying with the provisions of Article 2-4-2 of Module Twelve (Listing Rules) of the Executive Bylaws of Law No. (7) of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments which stipulates:

“The Board of Directors of a company shall call the general assembly to discuss the resolution of delisting the company’s Shares from the Exchange, including addressing the company’s current condition and the future plans to resolve these conditions. Calling for the company’s general assembly shall be made within a period of three months from the date of the resolution to delist the company’s Shares. The Members of a Board of Directors shall be subject to disciplinary actions in case of refraining from convening the general assembly during the stated period.

The company shall also provide the Authority and the Exchange with a copy of the certified minutes of the general assembly meeting, within a period of not more than two weeks from the date of commencing the general assembly.”

The CMA confirms that it will take all the necessary procedures to subject the Board of Directors to disciplinary actions in case the call for the general assembly was not made within the period mentioned above.

Moreover, the CMA draws the attention to the provision of Article (1-21) of the Module mentioned above which stipulates:

“The parties referred to in Article (1-2) of this Module whose Securities listing is cancelled or voluntarily delisted from the Exchange may apply for re-listing of their Securities in the Exchange, provided that the requirements necessary for listing are fulfilled. New Listing Applications may not be submitted before the lapse of six months from the date of executing the cancelation or delisting decisions.”

In conclusion, the CMA confirms that it will continue its supervisory role in protecting public investors, which will also create a fair, competitive and transparent financial market, as well as reduce the systemic risks that are expected to occur in securities activities, in addition to working to ensure compliance with laws and regulations related to such activities.

Copy of the Official Document

Disclaimer: The information provided on this page is for reference purposes only, visitors are encouraged to review and understand the information provided in the official scanned document attached in the link above (if available). The CMA endeavors to ensure that the information on this page is complete and accurate, but the CMA does not guarantee the quality, accuracy, or completeness of any content at any time. In the event the information on this page is different from the content in the official scanned document attached in the link (if available), the official scanned document attached shall take precedence.