2- Lecture II - Law and Ethics

8/13/2019 2- Lecture II - Law and Ethics

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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


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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 shareprofits and losses together. Advantages: Strength in

numbers, energies and talents. Risks:


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Business Organizations (Continued)

Partnership risks: may incur substantial debt; if unable to

be paid, personal judgments may take place against thepartners personally. This may lead to seizure (ending the

practice) & sale of the partners own assets.

Corporation: Unlike proprietorship and partnership, the corporation isan 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.


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The Corporate Entity

The independence of the Corporate Entity: The existence

of a corporation as separate and apart from its share-holder 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).


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Private & Public Corporations

Private and Public Corporations: A distinction is made

between private (closely held) and public corporations. Inpublic corporations, the shares are offered and

distributed to the public.

A private company is generally defined as a company inwhich:

(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.


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Private & Public Corporations (continued)

Most engineering corporations begin as private and thenthey may decide to go public; thereby disclosing and

reporting to the public.

Shareholders, directors & Officers: The shareholdersare 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.


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Shareholders, directors & Officers (continued)

Shareholders, directors & Officers (Contd): The officersof 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.


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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 of the agreeing parties and the profit-sharing

procedure.


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Definitions

The Arabic word is referred to, in English, as Syndicateor Union

The General Definition of Syndicate: a group of individualsor organizations combined or making a joint effort toundertake 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 commonpurpose: student union

Syndicate of Engineers: is a body that regulates theengineering profession; established by variousjurisdictions of the world to protect the safety, well-being and other interests of the general public


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Definitions (Continued)

The Engineering Syndicate defines the licensureprocess through

which an engineer becomes authorized to provide professionalservicesto the public.

Article I in the LawCode for Engineers:

1- , .(71983 427/1/1983)
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Definitions (Continued)

Article 1 - A syndicate is to be established andnamedTheEngineering Syndicatewherein it wouldbe considered an ficticious person; it would be theinstitution representing the authorized Engineersholding the nationality of the Arab Republic of Egypt;

it is also considered a consulting entity for thecountry in its field of specialization. The mainheadquarters of the Engineering Syndicate would bein Cairo; other branches would be established in thegovernorates in accordance with the provisions ofthe law.

(Article 1 substituted by Law No. 7 of 1983 Theofficial journal - Vol. 4, 27thof Jan, 1983)

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


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The Syndicate of Engineers governing documents I

The Egyptian Syndicate ofEngineers: was established to

substitute the Syndicate forEngineering Professions -decree No. 89 of year 1946

http://www.eea.org.eg

Document 1: encloses thecurrent governing law; that ofthe Engineering Syndicate No.66 for year 1974.

Made available in the samedocument is The InternalSystem for the EgyptianSyndicate

89.1946

eg.org.eea.//www:http

: 66 .1974
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Syllabus (Course Content)

Law & Ethics Course

Part A: Law Available in both Document I

and Document II.

Contracts and related

contractual matters will be

inferred upon from other

documents

Part B: Ethics Available in Chapter II;

Document II Ethics &

Regulations for EngineeringPractice

This Chapter is to be printed

and brought along for the

exam.


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The Egyptian Syndicate of Engineers (Website)


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Article II: The Syndicates Objectives

-2 :-1 -2 -3 4- -5 -6


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-7 -8 -9

-2 :Article II: The Syndicates Objectives


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Article II: The Syndicates Objectives

Article 2The 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 syndicatesmembers

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.


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Article II: Syndicates Objectives

f) Work on developing and disseminating the research and studies in the

various engineering fields, and linking the scientific and engineeringresearches 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 ofthe syndicate.

i) Work on raising the engineering awareness and organize supervising the

engineering offices and consultant engineering offices.


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6674 1- Conditions for membership 2- Main bodies of Syndicate and fashioningmethods.

3- The General Assembly 4- The Syndicate Presidential Council &President

5- Syndicate Divisions 6- Syndicate branches 7- The Syndicates Financial System 8- Dues and obligations of members 9- Disciplinary actions 10- Pensions and financial support 11- Fees 12- General and time-specific regulations

Chapters of Regulation No. 66 for year 74
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Chapter II: Membership Conditions: -3 :-

() .(1)-() 3 19837 (2)-() 3 1801993()

() .() .() () .

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Chapter II: Membership Conditions: Article 3A 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 supremecouncil 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) 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.c) Have the full civil eligibility.

d) Have a good reputation and biography.

e) 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.

f) Not been issued by disciplinary provisions for actions involving moralturpitude or dishonesty unless at least four years have passed on the

final sentence.


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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 withinsixty days at most from the exam results announcement date.


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Chapter III: 8 :

() () () () ()

:(1) (2) 9- 32 .

.9) 19837 )
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Chapter III: Article 8 - The general organization of the syndicate is formed as the

following:

a) The general assemblyb) The syndicatescouncil

c) The general assembly for each division

d) The divisionscouncils

e) The syndicate branches

And each one of them is formed from:

1) The general assembly of the syndicate branch2) 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.)
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Chapter IV: The General Assembly: (13(1

.13) 198085 ()1

17/3/1980)

14- :(1) .(2) .(3) .(4) .(5) .(6) .(7)


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Chapter IV: The General Assembly: (8) .(9) .(10) .(11) (12) .(13) .


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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), 17thof Mar, 1980.)

Article 14the general assembly concerns with:

1) Electing the syndicate head and the complementary members of the

syndicate council.2) Discussing the syndicatesgeneral policy.

3) Approving the annual report about the syndicatesactivity.

4) Approving the annual budget of the syndicate and its branches for the

coming year.

5) Suggesting modifying the Law Code for Engineers6) 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

auditorsreport.


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Chapter IV: The General Assembly: 8) Hiring auditors and specifying their fees.

9) Suggesting the rules that govern granting the subventions and pensionsaccording to the status of the subventions and pensions fund.

10) 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.

11) Considering any issue that the minister of irrigation advises presenting itto the general assembly.

12) Considering any issue suggested by the members.

13) Any other terms of reference stated in this law.


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Chapter V: -22

-- . .

19808522) ()17/3/1980(1123- .

. .
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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 syndicatecouncil 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 divisionand 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),

17thof Mar, 1980.)


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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 takeplace 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.


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Chapter V: 24-

. -25 .26- .

.


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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 councilmembers 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 deputyreplaces him until elections are held in the general assembly, to replace

the head until the end of his session, in the first succeeding meeting.


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Chapter VI: -32 :

1- .2- .3- .4- .5- .6- .7- .

.33- .34- .


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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 itscouncil, 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.


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37- .

38-(1) .38(1) ) 198085 )

. .

Chapter VII:


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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 forthem, 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 branchsgeneral 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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-39 :() .)) .() .() .40- .-41 .

Chapter VII:


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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 assemblysmeeting.

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.

Chapter VII:


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2- Lecture II - Law and Ethics

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