The General Authority for Investment and Free Zones (GAFI) said that the regulation for transferring the partners’ shares in limited liability companies in the investment law were adjusted. On Monday, the GAFI assured its keenness on protecting the shareholders’ and partners’ interests through a recall to clarify the authority’s periodic book number 16 which regulates the transfers of partners’ shares in limited liability companies. It also added that the application of informal contracts leads to illegal conditions arising, due to selling partners’ shares to more than one person, as well as acquiring shares in companies whose ownership is limited. 159 of 1981, limited liability companies’ shares could be sold in virtue of an authentic deed or by an act through which the signatures are legalised, unless the company’s founding law specifies a different process. The periodic book added more restrictions to abolish the idea of informal contracts in transferring the shares in limited liability companies, and that shareholders have to inform the GAFI within three months.

Source: Daily News Egypt December 19, 2018 11:27 UTC