Housing & Development Bank Chairman Obligated To Pay Back Profit Shares

The General Assembly of the Fatwa and Legislation sections in the State Council headed by the counselor Hamdy El-Wakil issued a legal opinion deciding that the chairman and managing director of Housing and Development Bank has no right to receive share of the annual profits given to the bank’s employees.

The legal opinion obligates the chairman and managing director of the bank to return all the funds he had received except for the sum he received for doing his job or any other expenses disbursed within the limits of the bank’s rules and regulations.

The bank’s general assembly approved distribution of profits to the bank’s employees and the board’s chairman, deputies and managing directors in violation to the law.

The counselor Sherif El-Shazly, deputy head of State Council and head of technical office at the General Assembly of the Fatwa and Legislation sections, stated that the article no. 53 of the bank’s statute determined the profit distribution method stating that the board of directors shall receive bonuses and not percentage of profit because the employment rules and regulations are not applied to the chairman and managing director.