Browsing by Author "Daniel Tariku"

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    The Desirability of Introducing a two-Tier Board Structure in the Ethiopian Corporate Governance System
    (Addis Ababa University,, 2020-04) Daniel Tariku; Solomon Abay ( Associate Professor)
    The board of directors could be an exceptionally complex organ considering its source and reasons for presence, board members' connection to the corporations, shareholders and officers, and board's function and models. In the corporate world, there are two predominant board of structures namely a Two-tier board (dual-model) and the One –tier board (unitary model) structure which Ethiopia follows currently. The two-tier board structure composed of the supervisory board and managerial board whereas in the former one it unifies both i.e. the managerial and supervisory board. A certain company has to be fulfilled with a well-governed and well-functioning effective board of directors to become successful. Accordingly, In Ethiopia, these days, the general public, as well as the business community, begins to come out from the cubicle approach and engages in share companies that require collaboration and a large investment. The numbers of share companies that are being formed are dramatically increasing. However, the current board of directors’ governance laws are being detached with several gaps and the very updated principles of corporate governance are not included in the code and other subsequent legislation. Accordingly, this study is concerned to examine the shortcoming of the two systems in terms of benefiting the viability of the company, shareholders, management’s, employees, and also society in general. This study will also further analyze whether the Ethiopian corporate legal system should introduce the two-tire board structure or not.