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Exchanges promoting best practice corporate governance are actually developing more attractive and sustainable markets. In this respect, EGX was not only keen to promote best corporate governance practices among listed companies through the listing and disclosure rules, but also to incorporate these practices within its institutional framework in order to lead by example.
EGX was one of the first public institutions that voluntary adopted best governance practices, whereby an independent Audit Committee that follows EGX Board of directors was established. The Committee’s role was activated to work in conjunction with the Internal Audit division to ensure maximum efficiency in auditing. The role of Risk Management department has also been activated to deal with institutional risks and reduce their negative impact at the lowest possible cost.
Additionally, in order to ensure greater independency, two independent expert members were added to the board of EGX.
Moreover, the Presidential decree that regulates EGX activities stipulates that the Chairman of the Egyptian Exchange could serve for a term of four years, renewable only once. The decree also stipulates that there should be an elected representative from the custodian banks among EGX board members. Accordingly, the number of elected board members are more than the appointed ones, which will ensure more governance and higher efficiency.
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