Nullification Of Company Resolutions In Ethiopia The Law And The Practice

Corporate resolutions are meant to declare the basic decisions made at the forum of either thernshareholders or the Board of Directors. The corporate resolutions made in accordance with thernlaw and the respective corporate’s constitutive documents are assumed to be the decision ofrncorporate and shall be binding on all shareholders of the corporations. On the other hand,rndespite few jurisdiction related differences among countries the recognition for nullification ofrncorporate resolution becomes a growing fashion in modern Company laws. Such recognition isrnprimarily meant to provide the legal mechanisms through which shareholders could opposerndisagreeable resolutions. In Ethiopian, matters of nullification of company resolutions arernregulated in Article 416 of the 1960 Commercial Code. The notion under this article has becomernthe growing controversy before the court. The scope, the interpretative application, and thernpractice of Ethiopian courts in resolving disputes involving nullification of company resolutionsrnhas not been studied in methodical way. Thus, the concern of this paper is to have a closer lookrnin to what the practical application of the nullification of company resolution under thernCommercial Code looks like.

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