Nullification of Company Resolutions in Ethiopia: The Law and the Practice

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Addis Ababa, Ethiopia


Corporate resolutions are meant to declare the basic decisions made at the forum of either the shareholders or the Board of Directors. The corporate resolutions made in accordance with the law and the respective corporate’s constitutive documents are assumed to be the decision of corporate and shall be binding on all shareholders of the corporations. On the other hand, despite few jurisdiction related differences among countries the recognition for nullification of corporate resolution becomes a growing fashion in modern Company laws. Such recognition is primarily meant to provide the legal mechanisms through which shareholders could oppose disagreeable resolutions. In Ethiopian, matters of nullification of company resolutions are regulated in Article 416 of the 1960 Commercial Code. The notion under this article has become the growing controversy before the court. The scope, the interpretative application, and the practice of Ethiopian courts in resolving disputes involving nullification of company resolutions has not been studied in methodical way. Thus, the concern of this paper is to have a closer look in to what the practical application of the nullification of company resolution under the Commercial Code looks like.



Company Resolutions In Ethiopia