ECESR Challenges the Validity of the General Assembly of the Judicial Authorities’ Employees Insurance Fund: Irregularities in Election and Voting Procedures

On Monday, May 26, 2025, lawyers from the Egyptian Center for Economic and Social Rights (ECESR) filed a lawsuit before the South Cairo Primary Court, acting on behalf of a member of the General Assembly of the Private Insurance Fund for Employees of Judicial Authorities and Affiliated Entities (9%), who was also a candidate for the Fund’s Board of Directors in the election held on Wednesday, May 14, 2025. The lawsuit challenges the legitimacy of the Fund’s Ordinary General Assembly meeting due to numerous violations that undermined the validity of the meeting and the subsequent election and voting process, potentially rendering the entire process null and void.

The case was registered under No. 3395 of 2025 (Civil – Government) against: the Chairperson of the Board of the Private Insurance Fund for Employees of Judicial Authorities and Affiliated Entities (in his official capacity); the Chairperson of the Financial Regulatory Authority (in his official capacity); the Honorable President of the Administrative Prosecution Authority (in his capacity as Chair of the Permanent Elections Committee of the Administrative Prosecution Authority); and the Honorable President of the Judicial Committee overseeing the Fund’s elections (in his official capacity). The hearing is scheduled for July 8, 2025.

The ECESR’s legal team has requested the court to rule the annulment of the Ordinary General Assembly meeting held on May 14, 2025, along with all resulting decisions, on the grounds that the meeting contravened the provisions of the Unified Insurance Law and the Fund’s bylaws. The suit further seeks the annulment of the election process for the Fund’s Board of Directors—including voting and counting procedures—due to their violation of legal and regulatory provisions. The lawyers also demand that the Financial Regulatory Authority disregard the results of the said General Assembly meeting and issue a decision to appoint an interim board for the Fund, in accordance with the law and bylaws. One of the interim board’s primary tasks should be to call for a new General Assembly to elect a board before the end of the year.

The lawsuit contends that the Board of the Private Insurance Fund for Employees of Judicial Authorities and Affiliated Entities (9%) violated all relevant provisions of the Unified Insurance Law as well as the Fund’s bylaws from the very onset of calling for both the Ordinary and Extraordinary General Assemblies. The meeting was marred by hundreds of violations—any of which would be sufficient to invalidate the assembly and its decisions, including the election procedures, vote casting and counting, and the final announcement of the results. Among the violations cited are:

Breach of Article 31 of the Fund’s bylaws, which mandates that the Board must first convene the Extraordinary General Assembly and obtain approval to amend Article 31 before calling for the Ordinary General Assembly and opening candidacy for only 9 out of 11 board seats.

The call to convene the General Assembly was issued past the legally mandated period, which requires it to take place within three months of the fiscal year’s end. However, the call was published on April 7, 2025.

Failure to publicly post the invitation at all branches and offices of the Fund in a visible location.

The venue, Sayeda Zeinab Youth Center, was unfit for hosting the assembly given that the total number of members is approximately 72,000, while the venue can accommodate only about 5,000.

Absence of a representative from the Financial Regulatory Authority.

The electronic system used during the assembly did not adhere to regulatory requirements. It was down for over three hours, voting was conducted publicly rather than confidentially, member identities were not verified prior to voting, and members were allowed to vote multiple times. The electronic system also combined votes for both the Ordinary and Extraordinary General Assemblies.

Lack of attendance logs and no tallying of actual attendees to determine quorum validity.

Absence of national ID numbers in the voter rolls and failure to verify the identities of voters.

Members voting on behalf of more than one other person using blank or unauthorized proxies, including cross-governorate authorizations that violate protocol.

Voting was unlawfully extended from the scheduled 5:00 PM closing time to 8:00 PM.

Evidence of block (group) voting.

Approval of signing a protocol between the Fund and the Secretariat of the Supreme Judicial Council, which was voted on despite not being listed on the General Assembly’s agenda and without notification to the Financial Regulatory Authority.

Approval of a contract with Zaldi Investment and Fund Management Company without an actual vote on the item, although it was listed on the agenda.

The lawsuit is aimed at safeguarding the collective right of the Fund’s General Assembly members to proper organizational representation and to protect their interests through a legitimately elected Board of Directors.

It is worth noting that the Chair of the Fund’s Board had issued a call on April 7, 2025, to convene both the Ordinary and Extraordinary General Assemblies on Wednesday, May 14, 2025, at the Zainhom Youth Center in Sayeda Zeinab, Cairo. The Ordinary General Assembly was scheduled to begin at 11:00 AM and, in the event of a lack of quorum, to be extended to 12:00 noon and close by 5:00 PM. The Extraordinary General Assembly was scheduled to begin at 5:00 PM.

The agenda of the Ordinary General Assembly included: approval of the Fund’s 2024 financial statements; appointment of an external auditor and determination of their fees; election of nine Board members for a three-year term; selection of two expert members in law and investment; and ratification of the Fund’s contract with Zaldi Investment and Fund Management Company.

The agenda of the Extraordinary General Assembly was limited to: presenting the consolidated bylaws in accordance with Decision No. 236/2024 by the Board of the Financial Regulatory Authority; and presenting amendments to the Fund’s internal bylaws, including an amendment to Article 31 stipulating that the Board shall consist of 11 members—two experts and nine elected by the General Assembly—along with repealing any provisions in conflict with this amendment, and amending other articles in alignment with Law 155/2024.

The Ordinary General Assembly was held at Sayeda Zeinab Youth Center but was delayed due to lack of quorum until 12:00 noon. The election and voting process was carried out electronically under the supervision of the Administrative Prosecution Authority. Due to technical failures of the voting platform, the voting period was unlawfully extended until 8:00 PM, followed by vote counting and result announcements.

The final reported attendance was 2,106 members out of an approximate 72,000-member total, according to the Fund’s Board Chair. The Extraordinary General Assembly, scheduled for 5:00 PM the same day, was not convened. Nonetheless, the electronic voting process included items listed under its agenda.