Ethiopian Law Regarding Business Organizations: Analysis on Selected Questions

Ethiopian Law Regarding Business Organizations: Analysis on Selected Questions
Business Law

By:

Aklilu Gebretsadik

Addis Ababa University School of Commerce Department of Marketing Management Feb. 1, 2013 Addis Ababa

1, Mention in detail, at least ten essential, points which must be included in partnership agreement. Answer
The 1960 Commercial Code of Ethiopia states the following to be included in a partnership agreement (memorandum of association) in Art. 284. The memorandum of association shall contain: (1) the name, address and nationality of each partner; ( 2) the firm-name; (3) the head office and branches, if any; ( 4) the business purposes of the firm; ( 5) the contributions of each partner.. their value and the method of valuation; ( 6) the services required from persons contributing skill; (7) the share of each partner in the profits and in the losses and the agreed procedure for allocation; (8) the managers and agents of the firm; ( 9) the period of time for which the partnership has been established. In addition, the partnership agreement shall contain the following additional points on default. (10) right and duties of partners (11) transfer of share outside the partners (12) power and conduct of general meeting (13) financial year (usually from Hamle 1 to Sene 30) (14) legal reserve of the company (15) applicable law for matters not contained in the partnership agreement (16) process of dispute resolution (17) dissolution and liquidation (18) amendment procedure of the articles of association

2, Discuss at least eight points of differences between partnership and company. Answer
Distinction between a Company and a Partnership N o Basis of difference Company Partnership

1

Legal Status

2

Minimum number of members

is a legal person and regarded by law as a single person Pvt. Ltd. Co –minimum -2 Share Company – minimum -5

is a collection of individuals

Minimum – 2

3

Maximum number of members

Pvt. Ltd. Co-...