Merits and Demerits of Introducing Non-Shareholder Directors in the Governance of Ethiopian Share Companies

Yismaw, Alemayehu (2014) Merits and Demerits of Introducing Non-Shareholder Directors in the Governance of Ethiopian Share Companies. Masters thesis, Addis Ababa University.

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Abstract

Share companies are practiced and operated in many sectors of the economy. They play paramount role to satisfy the taste, demand and interest of human beings as well as to bring a wide range of developments and structural transformations in a country. Their roles are also not easily replaceable across places, economic statuses and political standings. In Ethiopia, these days, the general public as well as the business community begins to come out from kiosk mentality and engages in share companies which require cooperation and large investment. The numbers of share companies which are being formed are dramatically increased. They are also brought benefit to the people, the business community and the country in many aspects. However, Ethiopian share companies are surrounded by many problems and their relevance is not to the level expected. The Commercial Code and other relevant legislations specify share companies to be managed by boards comprised of shareholder directors only. This prevents share companies to be managed by qualified, skilled and professional independent, stakeholders and non-executive non-shareholder directors. It also poses practical difficulty to maintain and enhance sound corporate governance, values and performances of share companies although there are scholars who argue that non-shareholders directors do negatively affect share companies. Hence, the thesis tried to point out the legal as well as the practical problems; studied different theories, research results, international documents and experiences of foreign countries; and consequently assessed the merits and demerits that non-shareholder directors would bring to Ethiopia share companies. Accordingly, the thesis recommended that non-shareholder directors should be introduced in the governance of Ethiopian share companies to exploit the benefits would be gained fully.

Item Type:	Thesis (Masters)
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management K Law > K Law (General)
Divisions:	Africana
Depositing User:	Emmanuel Ndorimana
Date Deposited:	27 Jun 2018 06:58
Last Modified:	27 Jun 2018 06:58
URI:	http://thesisbank.jhia.ac.ke/id/eprint/4916

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