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In publicly held companies, which are constituted by contribution of capital from a number of shareholders, ownership usually separates from the control of dispersed shareholders and goes into the hands of few managers or few controlling shareholders. Total separation between ownership and control in turn creates a risk of the managers (agent) working for their own interest at the expense of the shareholders (principal). This book put forward that the separation between ownership and control is growing in Ethiopia; and submits some empirical evidence in support of adopting good corporate governance laws and institutions in this regard. Based on the available literature and data on the subject matter, it attempts to show the deficiency in the Ethiopian Commercial Code and other pertinent proclamations and directives in addressing current issues in corporate governance related to board of directors, protection of rights of minority shareholders and issues regarding financial reporting, transparency and audit.
About the author
Held LL.B from Mekelle University in July 2009. He alsoreceived LL.M in Business Law in July 2011 from Addis Ababa University.Now he is Lecturer of Law at Wolaita Sodo University. Publication: (2011): Interpretation of Contracts under Ethiopian Civil Code: Subjective or Objective Method?, AAU Student Law Review, vol. 2, No.2.
