Shalakany is pleased to announce that it successfully defended its client, an automotive manufacturing company, in front of the Egyptian Cassation Court in relation to a capital increase -related dispute that was pursued by a shareholder before the Cairo Economic Court (Appeal level).
The case was filed before the Economic Court back in February 2019 against Shalakany’s client (the company), as well as the Financial Regulatory Authority and the General Authority for Free Zones and Investment, seeking a finding of nullity of the capital increase for various, purported procedural and substantive grounds. Shalakany managed to secure a favorable decision from the Economic Court (dismissing opposing party’s claim against Shalakany’s client) in November 2019, and a cassation challenge was pursued by opposing party early 2020. The Cassation Court recently issued its ruling upholding the appeal-level ruling and rejected opposing party’s challenge.
The Shalakany team handling this matter is comprised of Muhammad Ussama (Partner), and Mohamed El Zohery (Associate).
Muhammad Ussama (Partner) said: “This is an important win that addresses and confirms various important legal issues (both procedural and substantive) at the cassation level. It also confirms the validity of the relevant capital increase which took place in 2018 and, thus, protects our client from various business and legal complications that could have arisen from a finding of nullity.”
