Decree on Privatizing the “Beirut Stock Exchange S.A.L”: A Step in the Right Direction

September 21, 2017

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The Presidency of the Council of Ministers issued on 9/8/2017, Decree No. 1404 establishing a Lebanese company under the name of “Beirut Stock Exchange S.A.L” as stipulated in the Capital Markets Authority Law No. 161 of 17/8/2011.

According to this decree, the company’s statute of association was ratified, thus automatically dissolving the Beirut Stock Exchange, while transferring the rights, obligations and activities of the dissolved entity, including all contracts and agreements with third parties, to the newly established “Beirut Stock Exchange S.A.L”.

The interim Board of the newly established Beirut Stock Exchange S.A.L will comprise of two representatives of the dissolved BSE Board, three Executive Board Members from the Capital Markets Authority, and two members representing the Ministry of Finance.

With the issuance of Decree No. 1404, the Capital Market Authority has come close to achieving one of its main objectives since its establishment, namely, the privatization of the Beirut Stock Exchange, a development that is believed to bring major benefits as the private sector takes a leading role in operations and management.