Presidential Decree Forming a Commi

On 10 October 2019, Presidential Decree No. 526 of 2019 (the “Decree”)[1] was published in the Official Gazette and forming a committee that will amend the Public Sector Enterprise Law No. 203 of 1991 (the “Law”).[2] The Decree stipulated that the committee shall be chaired by the President's Advisor for National Projects and including the Minister of Public Business Sector, the President’s legal advisor, and a representative of the Ministry of Planning, Ministry of Finance, General Intelligence Service, Administrative Control Authority and National Security Agency. The Decision also stipulates that the committee will be tasked with agreeing on the final form of the amendment of the said Law without hampering the restructuring and economic reform plans, and to develop a media plan to deal with the objections that may result from its amendment. Finally, the Decision clarifies that the committee may seek the assistance of Egyptian or foreign officials and technical experts as well as request information and documents that it may need from any other authority. The Law was enacted in the early 1990s to lay down the legal framework required to implement the sale of public sector companies through “privatization” by transferring the subsidiarity of the companies to be sold under the umbrella of the new Law and the supervision of a new ministry at the time, the Ministry of Public Business Sector. The Law, therefore, included not only provisions for the evaluation, receipt of offers and sale processes, but also on how to manage and govern the companies that are prepared for partial or full sale. Although the nature and details of the forthcoming amendment are not yet known, it is likely that the purpose of the amendment will be to modernize the valuation and sale processes, avoid the procedural and legal problems that accompanied the privatization process in the past, and develop the financing and management structures of those companies which are still under the supervision of the Ministry of Public Business Sector.   [1] Presidential Decree No. 526/2019 forming a committee will be tasked with agreeing on the final form of the amendment of the Public Sector Enterprise Law without hampering the restructuring and economic reform plans, Official Gazette, No. 41 (cont.) (b), 10 October 2019. [2] Law No. 203/1991 on Public Sector Enterprise, Official Gazette, Issue No. 24 (bis), 19 June 1991.