Major Problems Associated with Private Limited Companies in Ethiopia: The Law and the Practice

Tadesse, Nigusie (2009) Major Problems Associated with Private Limited Companies in Ethiopia: The Law and the Practice. Masters thesis, Addis Ababa University.

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Abstract

Business organizations are important to operate business activities that demand the involvement of many persons. In these days, therefore, business organizations are getting momentum in every sector of the economy. In most jurisdictions, business organizations are classified as companies (corporations) and partnerships. The 1960 commercial code of Ethiopia provides six forms of business organizations, among which two of them are companies, namely share companies and private limited companies. In Ethiopia, private limited companies are dramatically increasing in all corners of the country and its role in the economy of the country is also considerable. Private limited company in Ethiopia, however, is surrounded by problems irrespective of its tremendous rising up. The problems are related with the provisions of the commercial code governing private limited company in Ethiopia. The sketchy nature of the provisions in the commercial Code in turn brought about practical problems which are prevailing in every company. In this regard, the study tries to point out the legal and practical problems related with: fully paid up capital, the mandatory legal requirement of the two members in the formation of such company, restrictions of share transfer out side the company, and the limited liability of members who manage a private limited company. Accordingly, the thesis tries to recommend that the commercial code should be amended so as to rectify the existing problems.

Item Type: Thesis (Masters)
Subjects: K Law > K Law (General)
Divisions: Africana
Depositing User: Emmanuel Ndorimana
Date Deposited: 22 Jun 2018 07:53
Last Modified: 22 Jun 2018 07:53
URI: http://thesisbank.jhia.ac.ke/id/eprint/4499

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