Disqualification Of Directors And Executive Officers As A Tool To Ensure Good Corporate Governance In Ethiopia
No Thumbnail Available
Date
2016-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
Disqualification /comprehensive suspension/ prohibits a person from working as a director,
senior corporate officer, liquidator, receiver, or, in any way, from engaging, or concerned with
the management of limited liability companies. A person may be disqualified, among others,
upon criminal conviction, unfitness, bankruptcy or any other failure in the administration of a
company. In Ethiopia, disqualification scheme is functional only in the financial sector. However, the
disqualification regime in the financial sector is criticized for its subjectivity, unpredictability
and lack of due process. In other words, in Ethiopia, disqualification scheme is not functional in
other types of limited liability companies other than those in the financial sector. However, now- a-days the Ethiopian Government is looking forward to incorporate disqualification regime in all
limited liability companies. This desire called examining the disqualification scheme and
amending provisions regulating corporate governance in limited liability companies.
Description
Keywords
Good Corporate Governance,Good governance