Egypt has finally passed The Security Over Movables Law in November 2015 which introduced a regime similar to fixed and floating charges as applicable under the UK law. The Executive Regulation (ER) of the Law was passed in December 2016. Taking into consideration novelty of the legislation, it has yet to be implemented on the ground and results to be evaluated. However, the main provisions of the Law can be discussed and outlined.

The liquidation of companies in Egypt is governed by the Egyptian Companies Law. No. 159/1981[1], the law governs all the aspects of the companies’ liquidation including the reasons of liquidation, status of the company under liquidation, the appointment of the liquidator, responsibilities of the liquidator and revocation of the liquidator.

The company may be liquidated for the following reasons:

The Law has been issued on the 19th of February and came into force on the 22nd of March which revokes the bankruptcy rules set out in Chapter 5 under the Commercial Code No.17 of the year 1999 (the “Commercial Code”).the newly introduced provisions have been adopted from the US Bankruptcy Law, Chapter 11.