Nullification of Company Resolutions in Ethiopia: The Law and the Practice
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Date
2020
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Addis Ababa, Ethiopia
Abstract
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 corporateās 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.
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Keywords
Company Resolutions In Ethiopia