Faculty of Engineering and Material Science

Legislation, Contracts and

Engineering Ethics

Lecture II:
(i) Business Organizations &
(ii) The Egyptian Syndicate of Engineers (Laws and Regulations)
Tarik A. Youssef Ph.D, P.Eng
October 24th, 2013
1

Table of Contents

Business Organizations:
The Basic forms of business organizations worldwide

The Egyptian Syndicate of Engineers:

What is the Egyptian Syndicate of Engineers?
The Syndicates major documents
The Syndicates Objectives

The Egyptian Syndicate for Engineers Law (Regulation No.

66 for year 74)

Decree of establishing the Syndicate/Union

Conditions of Membership
Governing Bodies within the Syndicate

Business Organizations

Business Organizations:
The three basic forms of business organizations worldwide
are:

Sole Proprietorships
Partnerships

Corporations
The awareness of the three forms of business organizations

is essential to the engineers appreciation of legal rights and

liabilities.

Business Organizations (Continued)

Business Organizations:
Sole Proprietorship: The name implies that an individual
carries on business by and for himself. The proprietor

personally enjoys the profits of the enterprise and

personally incurs any business losses in the enterprise.

Partnership: is an association of persons who conduct a

business in common with a view to profit. Individuals or
organizations carrying on a business in partnership share
profits and losses together. Advantages: Strength in
numbers, energies and talents. Risks:

Business Organizations (Continued)

Partnership risks: may incur substantial debt; if unable to

be paid, personal judgments may take place against the

partners personally. This may lead to seizure (ending the
practice) & sale of the partners own assets.
Corporation: Unlike proprietorship and partnership, the corporation is
an entity unto itself, distinct from its shareholder owners. The
corporation as an entity is described as a fictitious person aka
artificial person ( ) , in the Egyptian Civil Code (Act No.
131/1948). The corporation itself owns its own assets and incurs its
own liabilities; it can sue or be sued in its own name. A shareholder
of a corporation can contract with or sue that corporation.

The Corporate Entity

The independence of the Corporate Entity: The existence

of a corporation as separate and apart from its shareholder owners, and the basic premise that a corporations
liabilities are its own and not those of the shareholders,
has long been recognized by Civil Law and Common Law
courts.
This separate existence provides a strong incentive for
individuals to incorporate rather than carry on as sole

proprietors and partners remain vulnerable to business

creditors. Several examples are available in North American
and European Codes of Law (Reading them is optional).

Private & Public Corporations

Private and Public Corporations: A distinction is made

between private (closely held) and public corporations. In
public corporations, the shares are offered and
distributed to the public.
A private company is generally defined as a company in
which:
(i) the rights to transfer shares is restricted (it may be
subject to the approval to the board of directors);
(ii) the number of shareholders is limited;
(iii) any invitation for the public to subscribe for its
securities is prohibited.

Private & Public Corporations (continued)

Most engineering corporations begin as private and then

they may decide to go public; thereby disclosing and
reporting to the public.
Shareholders, directors & Officers:
The shareholders are the owners of the corporation. They receive
shares, certificates as evidence of such ownership, usually in return
for invested capital. The shareholders as owners elect the
directors of the corporation. The board of directors of the
corporation supervises the management of the corporations affairs
and business.

Shareholders, directors & Officers (continued)

Shareholders, directors & Officers (Contd):

The officers of a corporation are elected or appointed by its
directors. The officers of the corporation usually provide for the
day-to-day business management. The duties of particular officers

are normally set out in the by-laws of the corporation.

The Joint Venture (JV)

The Joint Venture:

The Joint Venture as a form of business organization has
become increasingly popular among contractors, engineers and

architects in connection with large scale projects, where it makes

sense to join forces. A joint venture is often essentially a
partnership limited to one particular project; a joint venturers
should ensure that the scope is limited to a single project, in
order to protect the assets of the joint venturers as partners in
the project. The joint venture agreement should include a clear
definition of the scope of the venture; it should also define
obligations

procedure.

of

the

agreeing

parties

and

the

profit-sharing

Definitions
The Arabic word is referred to, in English, as Syndicate
or Union
The General Definition of Syndicate: a group of individuals

or organizations combined or making a joint effort to

undertake some specific duty or carry out specific
transactions or negotiations.

Definition of Union: a number of persons, states, etc.,

joined or associated together for some common

purpose: student union

Syndicate of Engineers: is a body that regulates the

engineering profession; established by various

jurisdictions of the world to protect the safety, wellbeing and other interests of the general public

Definitions (Continued)
The Engineering Syndicate defines the licensure process through
which an engineer becomes authorized to provide professional
services to the public.
Article I in the Law Code for Engineers:

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1983 7 (
)27/1/1983 4

Definitions (Continued)
Article I in the Law Code for Engineers )English Translation(:

Article 1 - A syndicate is to be established and

named The Engineering Syndicate wherein it would
be considered an ficticious person; it would be the
institution representing the authorized Engineers
holding the nationality of the Arab Republic of Egypt;
it is also considered a consulting entity for the
country in its field of specialization. The
main
headquarters of the Engineering Syndicate would be
in Cairo; other branches would be established in the
governorates in accordance with the provisions of
the law.
(Article 1 substituted by Law No. 7 of 1983 The
official journal - Vol. 4, 27th of Jan, 1983)

The Syndicate of Engineers governing documents I

The Egyptian Syndicate of
Engineers: was established to
substitute the Syndicate for
Engineering
Professions
decree No. 89 of year 1946

http://www.eea.org.eg
Document 1: encloses the
current governing law; that of
the Engineering Syndicate No.
66 for year 1974.
Made available in the same
document is The Internal
System for the Egyptian
Syndicate

89
.1946
http://www.eea.org.eg

:
66
. 1974

The Syndicate of Engineers governing documents II

Document 2: includes the
Regulations for Practicing the
Engineering Discipline in the
A.R.E
Chapter II of the document
includes
the
Ethics
&
Regulations for Engineering
Practice

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Syllabus (Course Content)

Law & Ethics Course

Part A: Law

Part B: Ethics

Available in both Document I

and Document II.

Contracts and related

contractual matters will be
inferred upon from other
documents

Available in Chapter II;

Document II Ethics &
Regulations for Engineering
Practice

This Chapter is to be printed

and brought along for the
exam.

The Egyptian Syndicate of Engineers (Website)

Article II: The Syndicates Objectives

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Article II: The Syndicates Objectives

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Article II: The Syndicates Objectives

Article 2 The syndicate works on achieving the following objectives:
a) To elevate the scientific and professional level of engineers, preserve the
profession dignity, establish and apply the foundations that ensure organizing
the practice of the profession and the fulfillment of the syndicates members
to their duties, serving the country, as well as monitoring their
implementation.
b) Motivate the syndicates members and organize their efforts in serving the
society to achieve the national objectives and the economic development
objectives, confronting the implementation problems, and suggesting suitable
solutions, and positive participating in the national work.
c) Increase the fraternity and cooperation spirit among the syndicates
members, work on elevating the members level in the engineering, social
and financial aspects, insure their lives and care for their families socially,
economically, healthily, and culturally.
d) Contribute in studying the plans for the economic development, and the
industrial and engineering projects.
e) Contribute in planning some programs and curricula to keep pace with the
needs of the community, serve its interests, and meet its requirements.

Article II: Syndicates Objectives

f) Work on developing and disseminating the research and studies in the
various engineering fields, and linking the scientific and engineering
researches with the production sites, by studying the production techniques
and the means to improve them, increase the production volume and reduce
its costs.
g) Cooperate with the internal and external organizations and associations of
engineering, especially the ones in the Arab, African and Asian countries and
make closer ties between them and exchange the information and expertise,
which includes participating in the study of the common topics and projects
and also participating in the international conferences related to these goals
which are held abroad and work on holding them nationally.
h) Facilitate the housing and the construction of residential buildings for
engineers in Cairo and the governorates from its own money. This is
according to the terms and conditions determined by the internal system of
the syndicate.
i) Work on raising the engineering awareness and organize supervising the
engineering offices and consultant engineering offices.

Chapters of Regulation No. 66 for year 74

74 66
1- Conditions for membership
2- Main bodies of Syndicate and fashioning
methods.
3- The General Assembly

4- The Syndicate Presidential Council &

President
5- Syndicate Divisions

7- The Syndicates Financial System

8- Dues and obligations of members

6- Syndicate branches

9- Disciplinary actions
10- Pensions and financial support
11- Fees
12- General and time-specific regulations

 Chapter II: Membership Conditions:

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Chapter II: Membership Conditions:

Article 3 A member in the syndicate should:
a) Have acquired a bachelor in engineering from one of the Egyptian
universities or a scientific degree which is considered by the supreme
council of universities equivalent to the engineering bachelor degree.
(1) Item (a) of Article 3 was replaced by the referred Law No. 7 of 1983
(2) Item (a) of Article 3 was modified by Law No. 180 of 1993

b)

c)
d)
e)

f)

Be of an Egyptian nationality. The syndicate council may accept

membership of other nationalities if the membership terms apply and on a
condition of same treatment to be applied.
Have the full civil eligibility.
Have a good reputation and biography.
Not been sentenced to a criminal penalty or a penalty that restricts
freedom in a crime involving moral turpitude or dishonesty unless his
honor is being returned back in both cases.
Not been issued by disciplinary provisions for actions involving moral
turpitude or dishonesty unless at least four years have passed on the
final sentence.

Chapter II: Membership Conditions:

The universities, colleges, and high institutes which graduate the holders of
the qualifications listed in part (a) must notify the syndicate with the names of
the graduates, their graduate degrees, and their place of residence within
sixty days at most from the exam results announcement date.

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Chapter III:
Article 8 - The general organization of the syndicate is formed as the
following:
a) The general assembly
b) The syndicates council
c) The general assembly for each division
d) The divisions councils
e) The syndicate branches
And each one of them is formed from:
1) The general assembly of the syndicate branch
2) The council of the syndicate branch
Article 9 - Anyone nominates himself as a syndicate head, complementary
member, or head of a syndicate branch, should have a Bachelor
of Engineering from one of the Egyptian universities or an equivalent
university degree, have passed 15 years at least after his graduation,
practicing one of the professions stated in article 32.
Teaching the engineering sciences is considered as practicing the profession
while calculating the periods to meet the provisions of this law.
(Article 9 was replaced by the referred Law No. 7 of 1983.)

 Chapter IV: The General Assembly:

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 Chapter IV: The General Assembly:

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Chapter IV: The General Assembly:

Article 13 The general assembly of the syndicate is formed by all the
tabulated members who paid the subscription fees until the financial year prior
to that financial year preceding the date of the meeting.
(Article 13 was replaced by Law No. 85 of 1980 - official journal Vol. 1, item
(a), 17th of Mar, 1980.)
Article 14 the general assembly concerns with:
1) Electing the syndicate head and the complementary members of the
syndicate council.
2) Discussing the syndicates general policy.
3) Approving the annual report about the syndicates activity.
4) Approving the annual budget of the syndicate and its branches for the
coming year.
5) Suggesting modifying the Law Code for Engineers
6) Approving the internal system of the syndicate and the regulations for
practicing the discipline.
7) Approving the closing account for the ending year after reviewing the
auditors report.

Chapter IV: The General Assembly:

8)
9)

10)

11)
12)
13)

Hiring auditors and specifying their fees.

Suggesting the rules that govern granting the subventions and pensions
according to the status of the subventions and pensions fund.
Considering any issue that concerns the syndicate, where the syndicate
council advises presenting it, or needs to order for an unordinary meeting
for the general assembly.
Considering any issue that the minister of irrigation advises presenting it
to the general assembly.
Considering any issue suggested by the members.
Any other terms of reference stated in this law.

 Chapter V:
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Chapter V:
Substance 22 - The syndicate council consists of the head and at least 45
members with a maximum of 62 members of those who are tabulated in the
syndicate before the 1st of January of the year of the session. The syndicate
council must contain delegates from each division- chosen by its council -. This
council should also contain the heads of the syndicate branches completing it by
other members elected by the general assembly. The meeting is not legal except if
the majority of the members, elected by the people and general assembly of the
syndicate, attended the meeting.
The internal system shows the number of delegates representing each division
and the complementary members, elected by the members of the general
assembly of the syndicate through all the country.
(Article 22 was replaced by Law No. 85 of 1980 - official journal Vol. 11 (repeated),
17th of Mar, 1980.)

Chapter V:
Substance 23 - The members of the syndicate who have the right to attend the
general assembly elect the head and the complementary members through all the
country, at the time set by the syndicate council elections so that the elections take
place in the same time in the headquarter of the syndicate in Cairo and the
syndicate branches.
The head of the syndicate is elected by the secret vote of the majority of the right
voices of the attending voters through all the country. If no one of the candidates
gets the majority of the voices the elections is repeated between the two
candidates who got the most voices.
The syndicate head is the head of the syndicate council and the general assembly,
also he is the head of any meeting arranged by the syndicate or the syndicate
branches or any division if he attends any of these meetings.

 Chapter V:
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Chapter V:
Substance 24 - The syndicate head represents the syndicate in any
judicial or administrative bodies, and he should implement the decisions
taken by the syndicate council and he can delegate anyone of the council
members for some of his responsibilities.
Substance 25 - The syndicate council elects in its first meeting 2
deputies, general secretary, assistant secretary, treasurer and treasurer
assistant. They form, with the syndicate head, the syndicate council office.
Substance 26 - If the place of the head is emptied, the oldest deputy
replaces him until elections are held in the general assembly, to replace
the head until the end of his session, in the first succeeding meeting.

 Chapter VI:
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Chapter VI:
Article 32 - The following syndicate divisions are to be established:
1. Division of Civil Engineering.
2. Division of Architectural Engineering.
3. Division of Mechanical Engineering.
4. Division of Electrical Engineering.
5. Division of Chemical and Nuclear Engineering.
6. Division of Spinning and Weaving Engineering.
7. Division of Mining, Petroleum and Metallurgy Engineering.
The syndicates general assembly may, according to the proposal of its
council, merge a division into another one, or establish new divisions.
Article 33 - The general assembly of a division is composed of all the
registered members in that division. The internal system shows the terms
and conditions necessary for holding a legal meeting for that general
assembly, its field of specialization, and other rules concerning the practicing
these specializations.
Article 34 Each division is managed by a council elected by its own
members, with a minimum of 7 and a maximum of 15 members, according to
the number of the registered members for each division. The internal system
shows the number of council members for each division, the method,
conditions and procedure for electing them.

 Chapter VII:

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Chapter VII:
Article 37 A syndicate branch is established by a decision from the
syndicate council in every governorate, that has at least 200 members.
If they did not reach that number, the syndicate council has the right to
enroll them in the nearest branch or to establish a separate branch for
them, according to the rules and regulations indicated by the internal
system.
Article 38 - The general assembly of the syndicate branch is formed by
all the registered members who paid the subscription fees until the
financial year prior to that financial year preceding the date of the
meeting.
(Article 38 was replaced by the referred Law No. 85 of 1980.)
The general assembly holds its annual meeting in each February. The
branch head is the head of the general assembly meeting, in case the
head is absent, the oldest member of the meeting should be the head of
the assembly meeting.
It is allowed for the syndicate council or the division council to invite the
general assembly for an unordinary meeting. It is allowed also for 50
members of the branch to invite the branchs general assembly to that
meeting, conditioned that the council is pre-informed with the reason
and the date of the meeting.

 Chapter VII:

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Chapter VII:

Article 39 - The general assembly of each syndicate branch concerns with:

1. Electing the head of the branch as well as electing its council members.
2. Discussing the branchs affairs, approving the annual budget, and the
closing account.
3. Considering the suggestion proposed by the members at least 10 days
prior to the date of the general assemblys meeting.
4. Considering what the syndicate council or the branch council advises
presenting to the general assembly.
Article 40 - The general assembly of the syndicate branch elects a head
and board of directors every 4 years, taking into consideration representing
the divisions. The internal system shows the election method, the number of
the board members, and the representation of the divisions.
Article 41 - The branch council elects a general secretary and a treasurer,
in its first meeting. The branch council office consists of them in addition to
the branch head. The members of the office should be residents of the same
governorate of the branch.

Thank-You slide

Thank You !