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. Business can be run in different forms of business organizations, one of which is a company. This article is to show the deficiencies of legal protection of minority shareholders under Ethiopian company law compared with the England and German company laws. Since Ethiopia commercial law is under the process of revision, this article will have a paramount importance and can be used as input for amendment of commercial code of Ethiopia. Thus, we tried to analyze specifically, the legal protection of Ethiopian law offers for minority shareholders by comparative perspective. It includes the rights of minority shareholders; the substantive protection of minority shareholders such as the right to call general shareholders meeting, right to propose resolution, right to challenge decision of the company, right to appointment of independent audit, right to access information and voting rights. The article finally ends up with some concluding remarks and the deficiencies of Ethiopian minority shareholders protection, if any, and lessons to be learned from UK and Germany laws would be reflected as recommendation to the Ethiopian commercial code. Keywords : Minority share holders, Protection of Minority share holders, Company law. DOI : 10.7176/JLPG/86-03 Publication date :June 30 th 2019
Highlights
Business organizations are the most essential entities to invest capital
The commercial code of Ethiopia has to learn from both countries and revisit its company law provisions regarding the right of minority shareholders to propose resolution or agenda to protect them
When the resolution adopted contrary to the law, the memorandum or article of association it may be challenged within three months from the resolution but in no case after three months from the entry of the resolution in the commercial register according to Ethiopia commercial code art 416(2)
Summary
Business organizations are the most essential entities to invest capital. such organizations have different forms, structures, policy, procedures and rules. The Ethiopian commercial code has to improve the provision of company law regarding the requirements of calling shareholders’ general meeting for the purpose of protection of minority shareholders rights from any abuse.
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