Browsing by Author "Waritu, Mehamed Aliye"

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    Affiliate Companies in Ethiopia: Analysis of Organization, Legal Frame Work and the Current Practice
    (Addis Ababa University, 2010-01) Waritu, Mehamed Aliye; Yohannes, Ato Seyoum
    The formation and of operation of affiliate companies have become an enterperunreial reality in contemporary society. These companies have the freedom to determine the size and boundary of their organization , and in so doing they limit (and some time evade) their legal duties since they are characterized by their unity as commercial enterprise and their legal diversity (multiplicity) and legal segregation and insulation and member companies .Such a gap between organizational and legal structure in the realm of affiliate companies have been the subject of many academic discussion and there are also judicial and legislative development in the area, a tendency for special regulation in the interest of minority shareholders and creditors of the member company in the group particularly in the civil Law legal system. The paper endeavors to investigate the organizational structure of officiate company in Ethiopia and analyzed with the rules on joint holding, limitation on acquisition of bank shares, rules on liability of directors officers and managers and consolidation in bankruptcy. Apart from the absence of special regime and the insufficiency in the existing legal rules; courts, practitioners and regulators are not familiar with the legal consequences of opera ting affiliate company. So to curb problems presented to interests allied with affiliate company organizational structure such as creditors; judicial actions under the existing legal framework and legislative reform of the subject under consideration is recommended.