Suez Canal Company

The Compagnie universal du canal maritime de Suez ( in German also Suez Canal Company or Suez Canal Company) was founded by Ferdinand de Lesseps and the Khedive ( viceroy of Egypt ) Muhammad Said licensed corporation, which the Suez Canal from 1859 to 1869 built and up to its nationalization by Egyptian President Gamal Abdel Nasser on July 26, 1956 for operation.

She was already provided for in the first concession ( Firman ), the Lesseps had received on 30 November 1854 by Muhammad Said Pasha, its articles were, however, established and approved only in the second concession of 5 January 1856.

Statutes

The company was called the Compagnie universelle, which was expressed that it was not a national, Egyptian or French project.

Its object was

  • The construction of the navigation canal in the isthmus of Suez;
  • The construction of a fresh water canal from the Nile near Cairo to Timsahsee
  • And of branch channels to the north to the Mediterranean and south to Suez;
  • The operation and maintenance of these channels
  • And the necessary land,

Respectively, in accordance with the provisions of the first concession of 30 November 1854, and the second concession of 5 January 1856.

The company had its registered office ( Siège Social) in Alexandria, because it was a licensed by the Egyptian Viceroy company, its head office in Paris, however. She was formally consummated an Egyptian company, to which the rules of French law was applicable on joint stock companies the same way. The duration of the company should be like that of the concession, 99 years from the opening of the Suez Canal.

The share capital amounted to 200 million francs, divided into 400,000 bearer shares at 500 francs. However, 25 shares for one vote at the annual general meeting were required and no one could have more than 10 votes. The shares were multilingual must be made out in Turkish, English, German, French and Italian. For the deposit of the share amount paying agencies in most major cities between St. Petersburg and New York were provided. The payment of the share amount should be made in whole or in part after being called by the Board. First, to be issued in the name denominated certificates and after full deposit the final, par value bearer shares.

The Board of Directors ( Conseil d'Administration ) consisted of 32 members from the interested nations that were elected for eight years and have 100 shares in the company had. The Board had a president and three vice-presidents. He could form from its members a Board (Comité de Direction ). The Construction Department of the Company should have their headquarters in Alexandria.

At the Annual General Meeting was invited to a period of two months and with the attached agenda. The annual general meeting should always be held in May in Paris. The meeting was quorate if at least 40 shareholders and at least 5 % of the share capital was represented. An adjourned meeting at least two months was always a quorum.

During construction, the shareholders should receive 5 % a year in dividends. During operation, the remaining after the formation of various reserves net profit should be distributed as follows:

In parallel, the capital should have paid for the shareholders in the 99 years of the concession period. Disputes were to be settled by an arbitration tribunal, could be brought against the judgment before the Cour d' Appel in Paris.

Incorporation of the Company on December 15, 1858

The two concessions of the Viceroy were subject to approval by the Sublime Porte, which was not granted because of political pressure Britain's long. Therefore, the standing close to bankruptcy Lesseps saw no other option than to found the company and pursue the project of the canal construction without permission from Constantine Opel. To avoid too high for him appearing bank charges, he turned with an invitation to subscribe for the shares on the press directly to the audience. The shares were divided into shares of the various nationalities in order to maintain the international character of the company. The subscription of the shares ran from 5 to 30 November 1858 but was not a complete success. From shareholders from France 207,111 shares or 52 % of the capital had been drawn. For other European countries, there were only a participation of around 3%. Therefore, the Viceroy took approximately 44.4 % of the capital to allow the formation of the company at all. With the subscription of the shares but the payment of such amounts was not connected. First, the company called on only for payment of the first 20 % of the capital. The Company was incorporated on 15 December 1858.

Agreements with the Viceroy and the Government of Egypt

Financing agreement dated August 6, 1860

In the Financing Agreement dated August 6, 1860, the acquisition of the remaining 177,642 shares were formally regulated by the Viceroy, the previously accessed 20 % of the share amount mainly by bonds and the remaining 80% should be paid in the years 1867 to 1875.

Agreement of 18 March 1863 the freshwater canal

With the death of Said Pasha on January 17, 1863 ended the period of amicable agreement between the Viceroy and Lesseps. The successor of Ismail Pasha was clear to him weighed less and had agreements with Lesseps by his minister Nubar Bey complete. In the agreement of 18 March 1863 agreed that must be built because of the increased water requirement of the first part of the freshwater canal from Cairo to Wadi Tumilat larger than originally planned. The construction would be taken over by the government, the company waive the rights to the relevant land and was in favor obliged to expand the canal to Suez as for river navigation -grade channel.

Financing agreement dated March 20, 1863

Meanwhile, another 40% of the share capital had been called. The after various settlements to be paid out of Egypt assets of about 35.15 million francs should be paid from 1864 onwards in monthly installments of 1.5 million francs. Even after this financing agreement, the Company had thus far received already 40 % of the share capital or 80 million francs.

Arbitration award by Napoléon III. from July 6, 1864

The UK government had taken the death of Said Pasha as an opportunity to strengthen their political pressure on the Porte to prevent the sewer. The Sublime Porte had made, among others, the completion of the forced labor and transfer of the freshwater canal in Egypt as a condition of their still not given approval for the construction of the Suez Canal on 6 April 1863 in a note to Ismail Pasha. Lesseps therefore asked Emperor Napoléon III. to support, who agreed to adopt in accordance with the joint request of the parties to arbitration.

The arbitration award of 6 July 1864 provides that the Firman was to be considered on 20 July 1856, the forced labor as part of the contract work between the Egyptian government and Lesseps or the Company and the termination of forced labor to the Company with a total of 38 million. francs was to compensate. The freshwater channel will be transmitted to Egypt against payment of 10 million francs for the channel and another 6 million francs for the elimination of the fee income and supply of 70,000 cubic meters of water per day for the workers, the steam engines and the irrigation of remaining with the Company surfaces. The company receive as necessary for the construction and operation of the canal surfaces 10,264 acres on the Suez Canal and 9,600 acres on the freshwater canal. For the return of other surfaces they get 30 million francs. The total amount of 84 million francs should be paid in several installments during the period from November 1864 to November 1879.

However, this award had so far no direct consequences as the Sublime Porte, the expected approval still not granted.

Agreement of January 30, 1866

In the agreement dated January 30, 1866 a number of details were regulated, such as the right to use Egypt, surfaces on the channel for the national defense and the administration ( postal, customs, etc.) in return for reimbursement of the cost of this land, the right of individuals to settle along the canal, the acquisition of fresh water channel by the government after creating a acceptance report with the subsequent obligation of Egypt for the maintenance of the canal with a water depth of 2.50 m at high tide, 2.0 m at normal water and 1.0 m at low tide. The right of the Company to the navigation on the freshwater canal should only last until the completion of the main channel. In addition, the Company sold the estate Domaine du Ouady for 10 million francs to Egypt. If the company in 1866 will call for payment of the remaining 20 % of the share capital of Egypt should pay them around 17, 5 million francs in monthly installments in 1867.

Minutes of February 19, 1866

A group of experts put in the Protocol of 19 February 1866, the required along the canal space totaling 10,214 hectares determined ( ie 50 hectares less than in the award of Napoleon ).

Agreement of February 22, 1866

The previous arrangements were laid down again to prepare for the final approval of the Sublime Porte in the agreement of 22 February 1866 and to be paid by Egypt installments totaling 111.5 million francs (including the final payment to the share capital ) until December 1869 listed in a table. This agreement was verbatim in the approval of the Sublime Porte.

Approval of the Sublime Porte from March 19, 1866

The Sublime Porte finally granted on 19 March 1866, the authorization for the construction of the Suez Canal - so about seven years after the start of construction on 25 April 1859.

Borrowing in 1867

In 1867, the company tried a loan of 100 million francs to take by bonds over 500 francs, which was only partially successful. It initially only one third of the debt securities offered to the public were drawn. Allowed only when a statute enacted specifically for the Companies Act to combine the Bonds with a lottery, were raffled off at the prices 2000-150000 francs, and the remaining two-thirds were drawn.

Agreement of April 23, 1869

In agreement with the Egyptian government on 23 April 1869, the Company renounced their customs and taxation, and other special rights, all rights in connection with the freshwater canal and all possible claims for damages against the government. She had therefore only the position of the general laws subject to entrepreneur. The proceeds from the sale of land was split equally between the government and the society. For this and for certain buildings and land, a price of 30 million francs was agreed, which was paid with interest coupons of 176,602 shares of the government that were due from 1 January 1870. The company used this interest coupons for refinancing by issuing so-called Délégations to obtain immediate liquidity it needed urgently. The transfer of the interest coupons on the company introduced in 1870 and 1871 to debate about whether Egypt absence of full shares at the Annual Meeting of the Society was still participate and vote. For this reason, the Board had also reduced from 32 to 21 members. As a compromise, it was agreed that Egypt provisionally admitted to the Annual General Meeting until the dispute is resolved.

Construction costs and financing

Until the opening of the Suez Canal on November 17, 1869 a total cost of 416 million francs had accumulated, which had increased up to the actual completion on April 15, 1871 to 426 million francs. The construction costs, including administrative costs included in the amounts and interest on shareholders seem to have been covered, even if sometimes long-term liabilities by its issued share capital, paid by Egypt under the various agreements amounts of borrowing and other income of the Company by long-term receivables were covered and available liquidity was a perennial problem. So Muhammad Said's successor, Ismail Pasha, sold the equity portion of Egypt for 4 million British pounds to the United Kingdom in order to pay down debt. British Prime Minister Benjamin Disraeli had to justify in Parliament before the opposition leader William Ewart Gladstone, because he had the purchase of such shares to Rothschild Bank can finance, but had this secret.

President of the Suez Canal Company until nationalization in 1956

  • Ferdinand de Lesseps (15 December 1855-7. December 1894 )
  • Jules Guichard (17 December 1892-17. July 1896 ) ( December 7, 1894 in representation Lesseps )
  • Auguste -Louis- Alberic, prince d' Arenberg (3 August 1896 to 1913 )
  • Charles Jonnart (May 19, 1913-1927 )
  • Louis de Vogüé (4 April 1927-1. March 1948 )
  • François Charles -Roux (4 April 1948-26. July 1956 )

The Company after the nationalization

With the nationalization of the Suez Canal on 26 July 1956, the assets of the Company, ie in particular the Suez Canal and the freshwater canal and the operation of the canal was transferred to the Suez Canal Authority. The Suez Canal Company was awarded expropriations. After the politically failed Anglo-French attempt to regain the Suez Canal militarily ( Suez Crisis ), the company was founded in 1958 moved to France and renamed Compagnie Financière de Suez. It focused on a variety of investments and investments in various economic sectors. After various legal changes, it now occurs as GDF Suez.

Footnotes

  • Traffic History (Egypt)
  • Former company (Egypt)
  • Former company (France)
  • Suez Canal
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