ECC 1575/62
Type
Case
Court
Egypt Court of Cassation
Jurisdiction
Egypt
Taxonomy
Directors, Companies & Corporate Bodies, Appeals
Copyright
LexisNexis
Decision date
1 Feb 2001
Catchwords
Director – Company – Profit Share – Nature of Payment – Ruling Contradiction – Appeal
This case involved a claim by an employee who had been made a director for an unpaid profit share in the company. The court had been wrong to both confirm he deserved the payment as a director and also up hold a ruling which stated he deserved the amount as a representation allowance.
Background
An employee filed a case against a company and requested the court to order the company to pay 2500 Egyptian Pounds annually over the period from 1976 to 31/12/1978. The employee stated he was appointed as a member in the board of directors and that the company had earned profits in these years. The employee stated he had the right to claim a share in these profits according to Article 24 of Egypt Law No. 26/1954.
The court ruled that the company should pay the employee 4512.500 Egyptian Pounds.
The company appealed the ruling before the court of appeal. The court upheld the appealed ruling.
Decision