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General
Information
The
Insurance Supervision and Control in Egypt
Act
No. 10 of 1981 As Amended by Act No. 91 of 1995
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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