Chapter Seven
Insurance and Reinsurance Companies
Article 27 - An insurance or reinsurance company must take the form of an Egyptian joint stock company with an issued capital of not less than LE 30 million of which at least one half has been paid up at the establishment.
The rest of the issued capital must be fully paid within a period not exceeding five years from the date of the company's register at the Authority..
Tile company's shares must be nominative, and the participation of the Egyptian parties in direct insurance companies must be at least 51% of the capital.
'The company's capital shall not be reduced without the Authority's consent provided that the capital shall not be less than the minimum limit referred to in the first paragraph of this article.
The Insurance company may not carry on both the classes of insurance specified in article I, clause (I) item (I) of this Act and classes specified in the second item of the same clause except the existing companies are at the time of issuing the Act are lawfully carrying on both the classes specified in the mentioned clause.
Article 27 (bis) - Any one who establishes or manages an insurance or reinsurance company shall meet the following requirements :
1 - not be sentenced to a criminal penalty or sentence restricting liberty for committing a felony
of infidelity or honour unless he has been rehabilitated.
2 - not be declared bankrupt, unless he has been rehabilitated.
3 - not be disqualified.
Article 28 - Founders of an insurance or reinsurance company shall apply to the Authority to obtain the initial approval of the company's establishment.
The application form must be accompanied by a technical and economic feasibility study of the company, its objectives, envisaged classes of insurance and the additional information necessary for the consideration of the application. The Authority shall decide whether or not to approve the application according to the regulation of this Act.
After having the initial approval, the founders shall take the procedures of the company's establishment under the provisions of the pertaining laws.
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