The House of Representatives recently passed the final draft of the new Investment Law. The new law will come into force after being signed by President Abdel Fattach El Sisi and subsequently being published in the Official Gazette. The law will replace the existing Investment Law and form part of Egypt's ongoing efforts to encourage foreign investment.
Specific provisions on product liability were first introduced into Egyptian law in 1999 as part of the revised Commercial Transaction Law. The Consumer Protection Law further extended the Egyptian product liability regime. Together with the general provisions on contractual and tortious liability within the Civil Code, the Commercial Transaction Law and the Consumer Protection Law form the Egyptian liability regime for manufacturers, traders, distributors and service providers.
Article 43 of the Law on Military and Patriotic Service stipulates that employers should reinstate employees who have been called for military service. However, it does not stipulate whether reinstatement is obligatory, which has led to questions such as whether it is limited to indefinite-term contracts and events where the period of absence for military service does not extend beyond the term of the fixed-term contract.
The termination of employment contracts and the compensation associated therewith is one of the most intriguing and contentious labour law issues in Egypt. The Labour Law overlooks (without justification) important matters of significant concern to employers, including the basis for determining the compensation due for premature termination of employment contracts.
Much of the attention in recent months has been on the political situation in Egypt, in particular the development of Egypt's gas reserves. The gas sector in Egypt remains one where the development potential is significant. Investor confidence remains good, but it is important that this is maintained, particularly during this period of uncertainty, and efforts made to encourage additional investment in the future.
The government has reassessed its policy on private sector participation and announced that the power generation plan for 2012 to 2017 will include three build-own-operate/build-own-operate-transfer generation power plants. A new electricity law is also expected to be promulgated, which aims to establish a competitive electricity market that encourages private sector involvement in the generation and distribution of electricity.
The Supreme Constitutional Court has confirmed the legislature's right to regulate and balance out a transfer of technology contract in favour of the interests of the technology importer. An Egyptian company requested the annulment of certain clauses of a contract based on their breach of the Trade Law. The claim was dismissed and the appeal decision was withheld until the constitutionality of Article 87 had been reviewed.
Including: Legislation; Arbitration agreements; Procedure; Evidence; Confidentiality; Courts and arbitration; Remedies; Appeals; Costs; Enforcement.
The chairman of the board of directors of the Egyptian Financial Supervisory Authority (EFSA) recently passed a new resolution imposing an obligation on EFSA-licensed brokerage companies to register their approved branches in the new EFSA Branch Register by the end of the year. The new register will enable the EFSA to monitor functioning branches from a central position and avoid any duplication.
The legislature has introduced limitations on the terms of franchise agreements. These limitations are in favour of franchisees in order to protect importers of technology and know-how. However, franchisors can take steps to protect themselves against such limitations and minimise the risks and exposure arising from them.
The concept of tipping and facilitation payments is an established part of Egyptian culture. Both individuals and companies operating in Egypt will encounter such requests on a daily basis. This is especially true in the oil and gas sector, where the degree of liaison with low-level government officials is high due to the regulation and operational requirements of such companies, particularly during exploration phases.
The board of directors of the Egyptian Financial Supervisory Authority (EFSA) recently passed Resolution 67/2010, which imposed certain disclosure requirements on companies listed on the Egyptian Exchange (EGX). The resolution obliges listed companies to provide the EFSA and the EGX with briefings of all board meeting minutes, as well as minutes pertaining to ordinary and extraordinary shareholders' meetings.
Including: Introduction; Limitation periods for bringing claims; Structure of courts that hear large commercial disputes; Rights of lawyers in commercial disputes cases; Legal fee structures; Court proceedings; Interim remedies; Final remedies; Evidence; Third-party experts; Appeals; Costs; Enforcement; Cross-border litigation.
The Egyptian Financial Supervisory Authority has approved the Egyptian Exchange's October 2009 proposal to amend the general conditions for listing. The new amendment defines the 5% 'free float' and has set down objective criteria for listing and the continuation thereof. This has ended the legal debate on the interpretation of such a subjective and inherently non-legal term.
Decree 8310/2008 created various unconstitutional obstacles to the enforcement of arbitration awards in Egypt. This decree is now being challenged before the courts. One case brought before the Administrative Court challenged the courts' refusal to initiate enforcement proceedings for an arbitration award until a judgment in a nullity action brought against the arbitration award had been issued.
Ostensibly, the minister of justice has issued Decree 8310/2008 to regulate the deposition of arbitration awards with the courts. The deposition of an arbitration award is one of the steps required for enforcement under the Arbitration Law. However, for as yet undisclosed reasons, the minister also chose to introduce what are regarded by some as unconstitutional obstacles to the enforcement of arbitration awards.
The Cairo Court of Appeal recently confirmed its restrictive approach in setting aside arbitral awards, particularly in the context of international commercial arbitration. The court confirmed and upheld the universal principle of severability of the arbitration agreement and ascertained the existence of a simple presumption that an arbitral award is presumed to have been rendered after due deliberations unless proven otherwise.
In a recent case the respondent requested the annulment of an International Chamber of Commerce arbitral award rendered in arbitral proceedings commenced by the plaintiff and others. The Cairo Court of Appeal set aside and annulled the arbitral award on account of its violation of Egyptian public policy.
The Constitutional Court is the judicial authority entrusted with assessing the conformity of Egyptian laws with the Constitution. In recent years it has examined the constitutionality of certain provisions of the Arbitration Law and the new Commercial Law. The arbitration-related provisions pertained to, among other things, technology transfer disputes.
The Constitutional Court is the judicial authority entrusted with assessing the conformity of Egyptian laws with the Constitution. In recent years it has examined the constitutionality of certain provisions of the Arbitration Law and the new Commercial Law. The arbitration-related provisions pertained to, among other things, the process of challenging arbitrators.