Squeeze-out of minority shareholders under the Ethiopian commercial code: A critical analysis of its compliance with the Ethiopian constitution and UNGP

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Date

2025-03-01

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Addis Ababa University

Abstract

This paper critically examines the concept of squeezing out of minority shareholders under the Ethiopian Commercial Code, focusing on its compliance with the Ethiopian Constitution and the United Nations Guiding Principles (UNGP) on Business and Human Rights. The study explores the legal framework governing minority shareholder rights in Ethiopia, highlighting the recent amendments in the Commercial Code that empower majority shareholders to enforce a squeeze-out. Through a detailed analysis, the paper assesses whether these provisions align with constitutional guarantees of property rights, the right to fair treatment, and nondiscrimination. The findings reveal some gaps in the protection of minority shareholders, raising concerns about potential human rights violations. The findings underscore the need for a balanced approach that safeguards minority interests while facilitating corporate efficiency and growth.

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the right to fair treatment, and nondiscrimination. The findings reveal some gaps in the protection of minority shareholders

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