Share companies are practiced and operated in many sectors of the economy. They playrnparamount role to satisfY the taste, demand and interest of human beings as well as to bring arnwide range of developments and structural transformations in a country. Their roles are also notrneasily replaceable across places, economic statuses and political standings.rnIn Ethiopia, these days, the general public as well as the business community begins to come outrnfrom kiosk mentality and engages in share companies which require cooperation and largerninvestment. The numbers of share companies which are being formed are dramatically increased.rnThey are also brought benefit to the people, the business community and the country in manyrnaspects. However, Ethiopian share companies are surrounded by many problems and theirrnrelevance is not to the level expected. The Commercial Code and other relevant legislationsrnspecify share companies to be managed by boards comprised of shareholder directors only. Thisrnprevents share companies to be managed by qualified, skilled and professional independent,rnstakeholders and non-executive non-shareholder directors. It also poses practical difficulty tornmaintain and enhance sound corporate governance, values and performances of share companiesrnalthough there are scholars who argue that non-shareholders directors do negatively affect sharerncompanies. Hence, the thesis tried to point out the legal as well as the practical problems; studiedrndifferent theories, research results, international documents and experiences of foreign countries;rnand consequently assessed the merits and demerits that non-shareholder directors would bring tornEthiopia share companies. Accordingly, the thesis recommended that non-shareholder directorsrnshould be introduced in the governance of Ethiopian share companies to exploit the benefitsrnwould be gained fully.