Browsing by Author "Teshome, Tilahun (Prof)"
Item Regulation of Insurance Brokerage in Ethiopia: The Law and the Practice BY(AAU, 2020-06) Derseh, Yinebeb; Teshome, Tilahun (Prof)One of the major actors in the insurance business transaction are insurance intermediaries. There are different types of insurance intermediaries among which insurance brokers are the main ones. The business of insurance and the insurance policies are complex to the public in general. As a result, the assistance of these middle men in the insurance industry is very crucial for the efficiency of the insurance sector in general. Insurance brokers are persons that assist and work in handling of insurance contracts and insurance transactions mainly on behalf of the public at large. That is to say insurance brokers mainly act on behalf and as agents of prospective insured persons. Though insurance brokers act on behalf of the insured they may also render important services at times even may act on behalf and as agents of insurance companies. This especial characteristics of the insurance broking sector gives insurance brokerage and its regulation to have its own distinct features. The business of insurance in general requires careful and adequate regulation. In tandem with this and as insurance brokers are major players in insurance sector one of the major areas of regulation in this regard is the regulation of insurance brokerage. The regulation of commercial brokers in general is governed under Book I Title II of the Commercial Code of Ethiopia. In addition to this the insurance business proclamation of Ethiopia holds few provisions specifically on the regulation of insurance brokers. In addition to these, there are specific directives which are issued by the National Bank of Ethiopia and are applicable on insurance brokers. The main purpose of this work is to assess the adequacy of the laws regarding the regulation of insurance brokerage in Ethiopia. Especially emphasis to the regulation of payment of insurance brokers’ remuneration in Ethiopia will be done in the research. To that end, international literatures and practice as well as the pertinent legislations on insurance brokers in Ethiopia will be analysed thoroughly. Moreover, in order to see the practice of insurance brokerage in light of the applicable laws, the prevailing practice in the sector will be assessed. In addition to analysing of the legislations, this research paper will also use interviewees and analysing of court decisions rendered in relation to insurance brokerage.Item Willful Withdrawal and/or Dismissal of Members from Private Limited Company in Ethiopia: the law and the Practice(AAU, 2020-05) Bogale, Abera; Teshome, Tilahun (Prof)Business organizations are preferred to undertake business activities in an organized form. In most jurisdictions, they are classified as partnerships and corporations. The Ethiopian Commercial Code of 1960 also follows the same classification. Companies are further classified as share companies and private limited companies (PLCs). PLCs have both the attributes of partnerships and share companies. They are formed between families, friends, and close business partners based on mutual trust, fiduciary, and cooperation. Members can also be an employee in the company and it’s characterized by corporate and members limited liability. Besides majorities of companies in Ethiopia are PLCs and have a tremendous contribution to the national economy by creating job opportunities and paying taxes. Though it is founded on mutual trust and cooperation things may not go as members have expected it to be. In due course members who are also employees may misappropriate the company’s asset, majority shareholders may oppress the minorities or the purpose for which the company is established may not be achieved or trust may break. For all these reasons the members may want to willfully withdraw or other shareholders in the interest of the company may want to dismiss a member who is the source of the dissatisfaction. Although members are free to determine how to settle these issues under the MOA or AOA, the intimate relation that exists in the early days of its formation obstructs them to plan in advance on how to regulate possible disputes arising in the feature. Moreover, the provisions of the Commercial Code on PLCs have not regulated the issue. Therefore, the absence of clear legal provisions to effect withdrawal and/or dismissal and failure of the parties to plan in advance on how to solve such issues results in a serious problem. The only possible remedy for shareholders who have irreconcilable disputes is dissolution and this goes against the interest of members, employees, and the national economy. This problem is further exacerbated by the inconsistency of court’s decision on the issue. Some of the Federal Courts apply the provisions of share companies and partnerships to rule on withdrawal and dismissal for a substantial cause. Other Federal Courts decide that such claims lack cause of action. Therefore, the thesis examines the legal and practical problems on willful withdrawal and dismissal of members. Thereby recommends the possible measures that should be taken to tackle the problem.