CBE Decreases Required Annual Board

With the aim of easing the burden on banks operating in Egypt, the Central Bank of Egypt (“CBE”) amended the regulations governing board of directors meetings in banks under its supervision by decreasing both the minimum amount of annual board meetings to eight (instead of twelve) and the number of times in which a board member is allowed to participate through telecommunications methods to a maximum of two per year (instead of four).[1] Previously, in September 2018 and as part of its stated efforts to propagate governance standards, the CBE had required the convening of regular board meetings at least once a month (which was an increase from CBE regulations followed since 2011 that required at least 6 board meetings annually)[2] and had also mandated physical in-person participation in these meetings while allowing the option of virtual participation (through video or phone calls) only four times a year for each board member and under certain conditions.[3] This created a conundrum, particularly for international banks with board members residing outside of Egypt. Consequently, the CBE circular on 29 January 2019 attempts to address this issue by decreasing the threshold to eight board meetings per year.   [1] CBE Circular dated 29 January 2019 amending the number of board of directors’ meetings and the participation via video or teleconference, available through this link (in Arabic). [2] CBE Instructions on Governance for Banks, dated 23 August 2011, available through this link (in Arabic). [3] CBE Circular dated 20 September 2018 amending the number of board of directors’ meetings and permitting video and teleconference, available through this link (in Arabic).