Million Alemu Legal Services

ABSTRACT*

The aim of this study is to critically analyze the roles and responsibilities of BoDs of SCs as contained in RCC and Banks’ Corporate Governance vis-à-vis the Principles that are included as in OECD’s Principles, which are accepted as an international best practice to be emulated. The study has utilized a qualitative research approach and exploratory research design. The theoretical and empirical reviews of the pertinent literature, as well as the interview conducted, have revealed that RCC has gone leaps and bounds in embodying what is expected by the sixth principle of OECD.

Yet, there are still observable lacunae like failing to require ethical standards from BoDs, failing to mandate BoDs to decide on remuneration issues, and failing to put a requirement in place that ensures disclosure and communication mechanism. All of these and other deficiencies of RCC relating to corporate governance call for the promulgation of a Code of Corporate Governance by the Ethiopian Council of Ministers that obliges all financial and non-financial SCs and a Directive by MoTRI that ensures the effective implementation of the Regulation to be passed by the Council of Ministers.

*This article is written by Million Alemu Seboka, who is currently a Legal Consultant and Attorney-at-Law. He holds an LLB, from the Law School of Addis Ababa University (1997) and BSc in Economics from the Department of Business and Economics of Addis Ababa University (2006). This extract is taken from the thesis submitted by him to the Addis Ababa University for the partial fulfillment of his Master of Arts in Business Leadership (in June 2022). The full content of this extract can be accessed from the below attachment. The thesis was done under the capable tutelage of Dr. Mengistu Bogale.  You can contact the writer via his email: This email address is being protected from spambots. You need JavaScript enabled to view it..

Attachments:

File	Description	File size
Roles and Responsibilities of BoDs of Share Companies_by Million Alemu_June 2022		460 kB