New Council of Ministers Regulations 2011


Council of Ministers Regulation No. 247/2011 Ethiopian Roads Authority Re-establishment

Council of Ministers Regulation No. 24912011 Ethiopian Youth Sports Academy Establishment

Council of Ministers Regulation No. 250/2011 Information Network Security Agency

Council of Ministers Regulation no. 251/2011 Federal Urban Real Property Registration and Information Agency Establishment

Council of Ministers Regulation No. 252/2011 Certain Rights and Privileges of Foreign Nationals of Ethiopian Origin to be exercised in the Country of their Origin Council of Ministers (Amendment)

Council of Ministers Regulation No. 253/2011 Rift Valley Lakes Basin High Council and Authority Establishment

Council of Ministers Regulation No.254/2011 Ethiopian National Theater Establishment

Council of Ministers Regulation No.255/2011 Ethiopian Shipping and Logistics Services Establishment

2011 was the busiest year for the Council of Ministers. During this year more regulations have been issued by the Council than proclamations issued by the House of People’s Representatives. One of the factors contributing for the growth of legislation by the Council is the delegation of vast powers of law making power provided in article 34 of Definition of Powers and Duties of the Executive Organs of the Federal Democratic Republic of Ethiopia Proclamation No. 691/2010. According to this provision, The Council of Ministers is empowered, where it finds it necessary, to reorganize the federal government executive organs by issuing regulations for the closure, merger or division of an existing executive organ or for change of its accountability or mandates or for the establishment of a new one. The power of establishing new agencies through regulation has significantly increased the legislative role of the Council of Ministers.

Most of the regulations issued in 2011 are regulations for the establishment of Agencies, public enterprises and universities. These regulations mainly give legal personality for the newly established universities. There are also regulations for the re-establishment of the existing universities. The contents of each of the regulations are almost similar and contain four or five articles. Here is a brief summary of the content of university establishment or re-establishment regulations.

  • All Universities are accountable to the Ministry of Education
  • They are governed by Higher Education Proclamation No. 650/2009 and Federal Universities Council of Ministers Regulation No.211/2011

The respective regulations establishing or re-establishing a university is listed below:

Reg no.221/2011 Wollo University

Reg no.222/2011 Wachamo University

Reg no.223/2011 Adigrat University

Reg no.224/2011 Mizan Tepi University

Reg no.225/2011 Axum University

Reg no.226/2011 Jigjiga University

Reg no.227/2011 Debre Markos University

Reg no.228/2011 Debre Birhan University

Reg no.229/2011 Debre Tabor University

Reg no.230/2011 Dire Dawa University

Reg no.231/2011 Hawassa University

Reg no.232/2011 Haramaya University (Re-establishment)

Reg no.233/2011 Bahir Dar University (Re-establishment)

Reg no.237/2011 Adama Science and Technology University

Reg no.238/2011 Dilla University (Re-establishment)

Reg no.239/2011 Metu University

Reg no.240/2011 Jimma University (Re-establishment)

Reg no.241/2011 Gondar University

Mulugeta Getu, Law Schools’ Access to Legislation and Decisions: Current Trends and Suggested Outlets


Law Schools’ Access to Legislation and Decisions: Current Trends and Suggested Outlets      DOWNLOAD (pdf)

(Journal of Legal Education Vol. 3, No.2            December 2010 )

Mulugeta Getu

(LLB, LLM, Lecturer in Law Haramaya University College of Law.)

Introduction

Legislations enacted by the different organs of the regional and federal states and precedents (interpretation of law given by the Federal Supreme Court Cassation Division and the decision of the House of Federation on constitutional issues) comprise the sources of law in Ethiopia. These materials should be easily accessible to the public to let it guide its behavior in accordance with the law. In addition, access to law paves the way for the establishment of the rule of law.

There is, however, a serious problem of accessing legislations and decisions in Ethiopian law schools. The lack of access is often caused by many factors, namely, lack of commitment, poor attention, financial constraints, bureaucratic acquisition process, lack of regular publication and distribution, geographical limitations, etc. Law schools being the naissance of lawyers, have the most compelling need of accessing these documents. Unlike ignorance of law by ordinary citizen that affect that individual alone, ignorance of a lawyer (who will eventually become a judge, attorney, or a prosecutor) endengers the public. Legislations and decisions, moreover, are periodic in a sense that upon their issuance, they might repeal or suspend earlier laws or decisions. This nature of the documents, in turn, requires their prompt communication to law schools and the public in general to make them effective.

This article tries to assess the challenges and possible outlets regarding the accessibility of these documents by law schools. To address these issues, the writer has used a combination of methodologies. Most of the data for the research gathered through interview and questionnaires from different law schools. Literature review has also been made to appreciate the necessity of these legal documents, effect of poor access to the legal education and observe the lessons of foreign law schools. In addition, documents like legislation have also been consulted wherever found necessary.

The article is divided in to three chapters. It starts with an introduction followed by the first chapter addressing three more points: history of publication of legal documents in the world and Ethiopia, the kinds of documents statutorily required to be published in Ethiopia together with the responsible organs, and laws schools‘attachment to these documents. The Second chapter is devoted for assessing the means used by law schools to access these legal materials, and the effect of poor access on the legal education. The tasks we ought to do to enhance accessibility of documents to best support the legal education is dealt in the third chapter. And, finally, the conclusion follows.

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Mizan Law Review Vol 5, No 2 (2011)


Mizan Law Review publishes peer reviewed scholarly articles that identify, examine, explore and analyze legal and related principles, stipulations and concepts based on research findings. Mizan’s articles aim at interpretation, description, exploration and diagnosis towards the solution of problems (or legal issues) including proactive critique and projection that assist the development of laws.(Source African Journals on-line   http://www.ajol.info)

BETWEEN ‘LAND GRABS AND AGRICULTURAL INVESTMENT: LAND RENT CONTRACTS WITH FOREIGN INVESTORS AND ETHIOPIAS NORMATIVE SETTING IN FOCUS

Elias N. Stebek

Abstract

This article examines whether the land rent contracts and the Ethiopian legal framework on rural land use rights can assure win-win mutual benefits expected from large-scale land transfers to foreign investors. The article further examines the challenges in the realization of the Seven Principles for Responsible Agricultural Investments prepared by FAO, IFAD, UNCTAD and the World Bank Group as a framework of standards for the current global dialogue on large-scale farmland acquisitions. I argue that land-use insecurity in the Ethiopian context results from the extensive powers of executive offices that are empowered to dispossess holders and reallocate land to investors. These powers can be even more discretionary where land transfers are made without prior mapping and demarcation of protected forests and wildlife, and where registration and the issuance of land-holding certificates to smallholder farmers and pastoralists have not yet been made. The article suggests the need to rectify the gaps in the land transfer contracts and most importantly, the need to render the government a custodian (and not owner) of land in conformity with the FDRE Constitution and to ensure that the termination of land use rights is decided by courts so that executive offices would not perform the dual functions of revoking and reallocating rural land use rights.

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THE POLITICS UNDERPINNING THE NON-REALISATION OF THE RIGHT TO DEVELOPMENT

Belachew Mekuria Fikre

Abstract

The right to development stands out as one of the controversial rights ever since its articulation in the 1970s. The adoption of the 1986 United Nations Declaration on the Right to Development underlines the importance of international cooperation for it to be realised. I argue that the emphasis on ‘development aid’ rather than the broader ‘development cooperation’ has contributed a great deal to the politicisation of the right and consequently undermined its materialisation. Indeed, there is the need for semantic and conceptual clarity in the use of the term ‘international assistance and cooperation’ that has deceptively supplanted ‘international cooperation.’ While the former is a term used under Article 2(1) of the International Covenant on Economic, Social and Cultural Rights with a view to laying down the broader States Parties’ obligations, the latter is what the Declaration on the Right to Development exclusively employs. I argue that even if development assistance is indispensable, taking it as the sole approach to the realisation of the right to development is both wrong and unhelpful.

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ETHIOPIAN LAW OF INTERNATIONAL CARRIAGE BY AIR: AN OVERVIEW

Hailegabriel G. Feyissa

Abstract

Ethiopia’s aviation history goes back to the late 1920s. And, carriage of goods and passengers by air dates at least as far back as the 1940s – the decade which witnessed the establishment of Ethiopian Air Lines Corporation (now Ethiopian Airlines). Despite Ethiopia’s relative success in commercial aviation, domestic literature on commercial air law has been scanty. Court decisions involving air carriage are rare, and one can seldom find a course on air law in the curricula of Ethiopian law schools. This article is an attempt to briefly address the gap in literature and encourage further academic discourse on Ethiopian law of air carriage with particular attention to the law and practice regarding international carriage by air.

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TO TAX OR NOT TO TAX: IS THAT REALLY THE QUESTION?  VAT, BANK FORECLOSURE SALES, AND THE SCOPE OF EXEMPTIONS FOR FINANCIAL SERVICES IN ETHIOPIA

Taddese Lencho

Abstract

The Ethiopian Value Added Tax of 2002 follows the standard approach of exempting financial services from VAT. Not all ‘financial services’ are, however, exempted from VAT. A number of services provided by the financial institutions are made taxable by the VAT laws of Ethiopia. No subject in this regard has probably attracted as much attention and controversy as that of sale by foreclosure of property held as security by banks. Both sides (i.e., members of the financial industry and the tax authorities) seemed locked in their conviction over the treatment of foreclosure sales in VAT. Members of the financial industry (in particular banks) are convinced that foreclosure sales enjoy the privilege of exemption in VAT while some within the Tax Authorities are equally convinced that foreclosure sales should be chargeable with VAT. These controversies have played out in the courtrooms, the press and a number of communications between the Tax Authorities and the members of the financial industry. This article examines these controversies and analyzes the scope of exemptions for financial institutions under Ethiopian VAT laws.

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The New Urban Lands Lease Holding Proclamation No. 721 /2011 (Published on Negarit Gazetta)


URBAN LAND LEASE PROCLAMATIONS No. 721 –2011 (DOWNLOAD  pdf)

New Land lease Proclamation No. 721 –2011

Federal Negarit Gazeta No.4 28th November, 2011

18th Year No.4

Addis Ababa 28th November, 2011

                            Proclamation No. 721/2011

A PROCLAMATION TO PROVIDE FOR LEASE HOLDING OF URBAN LANDS

Short title: Urban Lands Lease Holding Proclamation No. 721 /2011.

 

URBAN LAND LEASE PROCLAMATIONS No. 721 –2011 (DOWNLOAD  pdf)

Click on the above link, which will take you to the file attachment page

Basic requirements for the formation of a consortium of Charities and Societies


Basic requirements for the formation of a consortium of Charities and Societies

Following the coming in to force of Charities and Societies Proclamation no. 621-2009, the executive organ has issued regulations and directives for the implementation of the law. The Council of Ministers, which is delegated with a general power of issuing regulations for the successful implementation of the proclamation, issued a regulation (Council of Ministers to provide for the registration and administration of Charities and Societies Regulation number 168/2009) providing for the basic rules of procedures and requirements governing registration and administration of charities and societies. However, the detail (in practical terms, these are the most important rules) are found in the directives issued by the Charities and Societies Agency. So far, the Agency has issued about eight directives (Unfortunately, all of them in the Amharic language only.)

  • You can download seven of the eight directives from Consortium of Christian Relief and Development Association web site. Click HERE.
  • Directive No. 2 is not available from the above link. You can down it from my Amharic blog በላ ልበልሃ.  Click HERE.

The first directive of the charities and Societies Agency, (Directive No. of 2002) provides detailed rules of procedure and requirements necessary to form a consortium. The Charities and Societies Proclamation No.621/2009 generally gives recognition to the right of charities and societies to form a consortium to co-ordinate their activities, leaving the particulars to be determined by the Agency. (See Article 15 sub 3 and Article 55 sub 2 of the proclamation)

Similarly, Article 8 of Council of Ministers to provide for the registration and administration of Charities and Societies Regulation number 168/2009, lays down a general rule for the formation and registration of a consortium, which is also contained in the directive in a more detailed and elaborated manner.

The following brief note about the pre-conditions and procedures applicable to the formation of a consortium highly relies on the content of the directive. (Directive No. of 2002)

Who can establish a consortium?

Generally speaking, there are no restrictions on the types of charities and societies eligible to establish a consortium. However, the directive prohibits the establishment of a consortium as between charities and societies, if they are within a different category. Accordingly:

  • Ethiopian Charities could not form  consortium with Ethiopian Residents Charities or Foreign Charities
  • Ethiopian Societies could not form consortium with Ethiopian Residents Societies
  • Charities could not form consortium with Societies

The minimum number of members to establish a consortium is two. There is no legal limit as regards the maximum number.

Purpose of a establishing a consortium

Article 5 of the directive lays down the purpose of establishing a consortium, in broad and general terms. Accordingly, consortium may be established by charities and societies with a view to facilitate or co-ordinate their objectives and activities.  When one compares the provisions of the proclamation and the regulation in this regard, they don’t employ the same language in describing the reason or ground of establishing a consortium. According to the proclamation, charities and societies may establish a consortium ‘to co-ordinate their activities.’ On the other hand, the regulation states that such a consortium may be established by charities and societies ‘in order to achieve their common objectives.’ This raises a question as to whether charities and societies not sharing any common objectives could be established simply to coordinate their activities.

In order to avoid any confusion in this regard, sub-article 2 of article 5 of the directives, lists down some of the acceptable grounds for establishing a consortium. Hence charities and societies mat establish a consortium to:

  • Achieve their common objectives
  • Share experiences, information and ideas
  • Build capacity of members
  • Developing ethical and professional capacity of members
  • Tackle problems encountered by members, creating conducive environment, conduct consultation with relevant stakeholders

Pre-conditions for establishing consortium

The following requirements should be cumulatively fulfilled to establish a consortium

  • Rules of the consortium signed by member constituting the consortium.
  • Minute of members which contains their joint decision to establish consortium.
  • Renewed license of each member issued by the agency or a regional agency authorized by law to issue license
  • Minute of each member which contains a decision by its higher body to establish the consortium or a member of the consortium.

The content of Rules of a consortium

According to article 2(11) of the proclamation rules shall include the objects for which a Charity or Society is formed, or which it may pursue, or for which its funds may be applied; the qualifications for membership and for the holding of any office; the method of appointment or election to any office; the rules by which the Charity or Society is to be governed; and the method and manner by and in which any of the above matters may be amended.

Rules of a consortium should in the first place,  contain the particulars listed down in article 6 of the registration and administration of charities and societies regulation no. 168/2009. Accordingly the rules of a consortium should contain the following particulars.

  • Name, address and objectives of the consortium
  • Organizational structure of the consortium
  • Budget year
  • The utilization and administration of the financial resources of the consortium
  • Procedure through which officers of the consortium are elected or employed including their powers, functions and terms of office.
  • The conditions on which membership or tenure of officers of the consortium cease
  • Meeting and decision making procedure of the governing body and executive organs of the consortium
  • Procedure through which the rules of the consortium are amended
  • Sources of income of the charity
  • Logo or symbol, if any
  • Procedure to be applied in case of dissolution

The regulation authorizes the agency to prescribe additional particulars to be included in the rules of charities and societies. Similarly, such authorization also extends to the contents of the rules of a consortium.

Article 7 of the directive lists down additional particulars to be included by a consortium in addition to those required by regulation no. 168/2009.

Accordingly, the rule of a consortium shall contain the following particulars:

  • Procedure for admission of membership
  • Rights and duties of members
  • Grounds of termination of membership
  • Voting and meeting procedure of the general assembly
  • Election and decision making procedure of the general assembly
  • Contribution of members
  • Conditions for dissolution of the consortium

Organizational structure and membership of consortium

Generally speaking, it is up to the members to device their own rules, regulations and procedures governing the internal matters of the consortium. However, the directive lays down some minimum requirements uniformly applicable to all consortiums as regards management and membership.

The management of any consortium should comprise of a general assembly, board of executives and an auditor. This is only a minimum requirement. A consortium could have additional organs, bodies or committee responsible for specific tasks.

The general assembly follows up and supervises the activities of the board of executives. The minimum number of the members of the board of executives is 5 (five) whereas, the general assembly should comprise of members twice the number of the board of executives. It is also possible to have more members on the general assembly.  For instance, for a consortium having 8 (eight) members, the equivalent number of members on the general assembly is 16 (sixteen) or more than sixteen. But, it could not be less than sixteen.

All ordinary members of the consortium have equal voting right and representation in the general assembly. In additional to the ordinary members constituting the consortium, associate and honorary members who lack a voting right could also be admitted. The role and contribution of these members should not go beyond the objectives of the respective consortium or the spirit of the charities and societies proclamation.

Establishment and registration

Once a consortium is established by fulfilling the minimum conditions and requirements set by the proclamation and mainly by the directive, it has to be registered within three months by the Charities and Societies Agency. Registration endows the consortium a legal personality which shall be effective from the date of registration. The legal personality of the consortium is distinct from that of the constituting members. For all legal purpose, it shall be considered as having its own independent existence.

Revocation of Registration and Dissolution

Article 92 up to 94 of the charities and Societies proclamation is similarly applicable to a consortium as regards the grounds, procedures and effects of revocation of registration and dissolution. Members of the consortium may provide their own grounds and procedure for dissolution. However, at least 3/4th of the members of the general assembly should be present if a decision for dissolution is to be reached. Any such decision is void if the members present in the meeting are less than 3/4th of the total members of the general assembly. In case of dissolution, the higher authority of the consortium may decide for the partition of property, equally among members or transferring the whole asset and property to a consortium having similar objectives. In both cases, such decision has to be approved first by the Charities and Societies Agency to be effective.

Consortium of Consortiums

The directives allows for two types of associations. The first one is a consortium which is established by two or more individual charities and societies. Sometimes there might be a need to organize at a national level. Consortium of consortiums may become a preferred form of organization for such type wide-scale association. According to article 10 of the directives legally registered consortiums may again establish a consortium of consortiums “if it is proved that there is no other alternative other than establishing a consortium of consortiums.” The directive lacks clarity in the conditions that must be met before establishing a consortium of consortiums.  It simply referes to the requirements, conditions and procedures of a consortium and makes them applicable mutatis mutandis to consortium of consortiums.

 

 

One year of blogging — 2011 in review


I think it is not too late to say merry Christmas. Merry Christmas for all!!

2011 was a wonderful year in my blogging activity. Here is a brief overview.

I started chilot.wordpress.com (now chilot.me) on January 18, 2011 (only days left to celebrate my first year.) During this one year, Ethiopian legal brief has grown significantly mostly in content and to some extent in quality. I would like to warmly thank all of you who have visited my blog, specially those of you who have active on my blog by  posting constructive comments sending me encouragement, advice and even complaints.

Here is a brief overview my report in addition to the one prepared by wordpress.com

128 WordPress.com blog followers. 14 WordPress.com comment followers.WordPress tells me that all of my followers  are now 440 (including 290 Twitter followers. 22 Facebook followers.

Total Comments: 225

views for the first month (i.e. January 2011) =121

views for the last month (i.e. December 2011)= 25, 345

Still not doing well on alexa, but just for the purpose of comparison:

Previous: alexa rank for chilt.wordpress.com = 25 million and no regional data.

Current: alexa rank for chilt.wordpress.com = 781,196 and 278 in Ethiopia.

Special thanks to:

  • kebede 5
    Kedir Mohammed 4
    kaleab 4
    temesgen berhanu 3
    Adinew Lonseko Chinkiso 3
    WONDIMU

The plan for 2012

Here is a brief outline of what I will be doing in 2012.

  • Keep blogging
  • Case comments on a regularly basis.
  • Articles and legal analysis
  • Moving to wordpress.org provided someone help me with online payment. The problem with me is not the cost, rather the mode of payment.

What follows is the annual report by worpress.com about Ethiopian legal brief.

The WordPress.com stats helper monkeys prepared a 2011 annual report for this blog.

Here’s an excerpt:

The Louvre Museum has 8.5 million visitors per year. This blog was viewed about 77,000 times in 2011. If it were an exhibit at the Louvre Museum, it would take about 3 days for that many people to see it.

Click here to see the complete report.

New Draft Insurance Proclamation Submitted to Ethiopian Cabinet | 2merkato.com


New Draft Insurance Proclamation Submitted to Ethiopian Cabinet | 2merkato.com

Related news

Draft Insurance Proclamation Rewrites Existing Requirements | Addis Fortune

DRAFT PROCLAMATION TO PROVIDE FOR ADVERTISEMENT


The Ethiopian Broadcasting Authority has prepared a draft proclamation to govern the advertising business. The draft has been presented to stakeholders for discussion. The draft contains 38 articles. The draft requires any person who wants to engage in advertising activity to obtain an advertising business license. The contents of any advertisement must comply with the conditions laid down by the draft. Accordingly, any advertisement transmitted through the use of means of advertising dissemination or transmission shall be truthful, free from any unlawful, immoral, misleading and unfair content or presentation that may harm consumers. Advertisement which exposes the physical and mental health of the people to harm and which does not respect the social and traditional value of the society or does not protect the legitimate rights of the public is prohibited. Unlike most of the other proclamations issued by the parliament, violation of miscellaneous provisions of the draft proclamation does not entail severe penalty. Maximum penalty to be imposed for violation is fine not less than Birr 10,000 (ten thousand Birr)

The following is the text of the draft proclamation prepared by the Authority. Download the pdf file for full version.

DOWNLOAD Draft Advertisement proclamation (pdf)

PROCLAMATION No. ________/2011

Advertising Proclamation (Draft)

PROCLAMATION No._____/2011

A PROCLAMATION TO PROVIDE FOR ADVERTISEMENT

WHEREAS, advertisement plays a significant role in the political, economic and social development of the country by determining the activities of the public in marketing exchange and services rendering;

WHEREAS, advertisement plays a significant role in establishing healthy market competition in which it relates to the market-led economic system of the country;

WHEREAS, apart from protecting the development of the sector, the existence of advertisement law can help to protect the rights and benefits of the people and the dignity and benefits of the country;

WHEREAS, because of the advertising agent, advertisement publishers and advertisers are required to undertake their tasks in proper manner with respect to the principles of advertising, it has been found essential to clearly define the rights and obligations of persons who undertake advertisement services;

WHEREAS, to these ends, it has been found essential to issue a law that governs advertisement activities;

NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:

PART ONE

GENERAL PROVISIONS

1. Short Title

This Proclamation may be cited as the “Advertising Proclamation No._____/2011”.

2. Definition

In this Proclamation, unless the context requires otherwise:

1/ “Advertisement” means a message which is transmitted to publicize or promote sales of goods and services, name, logo, trademark, objectives or other related message.

2/ “The means of advertising dissemination or transmission” means that uses for advertising dissemination or transmission and that includes Advertisement through mass media, outdoor advertisement, telecommunication, postal, internet and fax services, cinema, film, video or any other related means of advertising dissemination or transmission.

3/ “Public Advertisement” means a message transmitted by a non-profitable organization or any institution that provides services to the public that transmits message for the purpose of charity, the benefit of the public, to educate or inform the public, or to request the cooperation of the public.

4/ “Advertising Activity” means engagement in an activity related to choosing media or means of advertisement, planning, designing, by assess the market rendering sales and promotion services, produce and publish advertisements and undertaking any activity related to advertisement activities.

5/ “Advertising Agent” refers to a person who is assigned by advertiser or advertising publisher that is engaged in an activity related to choosing media or means of advertisement, planning, preparing, by assess of the market rendering sales and promotion services, disseminating promotional materials or undertaking any activity related to advertisement activities.

6/ “Advertisement Publisher” refers to a person that disseminate or transmit advertisement through the use of means of advertising dissemination or transmission by providing transmission time, printing coverage or other related services.

7/ “Advertiser” refers to a person to whom a message is transmitted to publicize and promote his sales of goods and services, name, logo, trademark, objectives or other related message through the use of means of advertising dissemination or transmission.

8/ “Mass Media” means printed matter that includes periodical and broadcasting services.

9/ “Periodical” means printed material which is scheduled to appear in regular sequences of at least twice a year, which has a fixed title and which has a general distribution aimed at the entire public or a section thereof, and includes newspapers and magazines; and for the purpose of the execution of this proclamation, it shall include advertisement book, yellow page and telephone directory.

10/ “Broadcasting Service” means a radio or television transmission program conducted to educate, inform, entertain the public and disseminate or transmit advertisement.

11/ “Outdoor Advertisement” means any advertisement transmitted by utilizing outdoor advertisement board hanged up on a pole or planted things or a stand, billboard, electronics screen, moving picture, written on a wall, advertisement either hanged, erected or affixed to on planted things, building or vehicle, banner, poster, sticker, plastic card, leaflets, brochure or flier, packaging, sound, audio cassette, microphone and other related means of advertising dissemination or transmission.

12/ “Outdoor Advertisement Service” means an advertisement which a person undertakes to announce products, services, name, logo, trademark, objectives or any related message by utilizing the advertisement media listed in Sub-Article (11) of Article 2 of this Proclamation.

13/ “Sponsored Program or Print” means a program or print the transmission cost of which is paid directly or indirectly or the payment of which is promised or the material, intellectual property or any service of which is provided as a support or cooperate.

14/ “Sponsor” means a person who supports or cooperates with an organizer of a program by providing financial, material, intellectual property or other service to a program or print of another person with the aim of promoting his own or another person’s product, services, name, logo, trademark, objectives or other related messages.

15/ “Infomercial”  means an advertisement enduring more than two minutes including teleshopping, home shopping, direct marketing and direct sales, which is transmitted through television broadcasting  service after being prepared as a program format to promote the products or services of the contracting party who agreed to pay to the broadcaster for such service and it does not include Public Advertisement.

16/ “Inserted Advertisement” means an advertisement inserted in a form of sound or image to promote the products or services of any person from whom the broadcaster has earned money or obtained benefit.

17/ “Split-Screen Advertisement” means an advertisement shown adjacent to a program disseminated by television, video or film screen.

18/ “Counter Advertisement” means an advertisement transmitted to correct wrong public opinion created by previously transmitted advertisement in contradiction to the law and ethics of the profession and thereof to protect and ensure the legal benefits of the victim of such violation.

19/ “Program” means voice or visual or audiovisual arrangement transmitted to inform, educate or entertain the public or an all inclusive transmission program and it includes news.

20/ “News and Current Affairs” means news, documentary, feature or analysis transmitted through mass media about any regional, national or international event which has current political, economical or social relevance.

21/ “Daily Transmission Time” means the broadcasting service transmission in the 24 hours starting from 6 hour in the morning.

22/ “Lottery” means any game or activity in which the prize winner is determined by chance, drawing of lots or by any other means and includes tombola or raffle, lotto, Toto, instant lottery, number lottery, multiple prize lottery, promotional lottery, bingo, sport betting lottery and other similar activities.

23/ “Appropriate Governmental Body” means federal or regional governmental body to which the responsibility is legally vested to execute the provisions of this proclamation.

24/ “Regional State” means any of the regional states specified under Sub Article 1 of Article 47 of the Constitution of the Federal Democratic Republic of Ethiopia, and shall, for the purpose of this Proclamation, includes the Addis Ababa and Dire Dawa City Administration.

25/ “Authority” means the Ethiopian Broadcasting Authority.

26/ “Person” means a physical or juridical person.

3. Scope of Application

This Proclamation shall be applicable to:

1/ Any advertising agent, advertisement publisher and advertisers engaged in advertising activities within the territory of Ethiopia; and

2/ Any advertisement prepared and transmitted in Ethiopia through mass media, outdoor advertisement, telecommunication,  postal and internet service, fax transmission, moving picture, sound, audio-cassette, film or video and advertisement transmitted by an organization established in Ethiopia or a person who reside in Ethiopia through the internet service which is designed in Ethiopia or internet website designed out of Ethiopia.

3/ A foreign mass media from abroad or transmitting in Ethiopia which focus primarily on domestic issues and which have been produced primarily for local audiences.

DOWNLOAD Draft Advertisement proclamation (pdf)

ETHIOPIAN BANKRUPTCY LAW: A COMMENTARY (PART I) TADDESE LENCHO


 

About TADDESE LENCHO (profile is at the time this article written)

Currently a Lecturer, formerly the Associate Dean and Acting Dean of the Faculty of Law, Addis Ababa University; he holds LL.B (AAU), LL.M(University of Michigan Law School)

E-mail:tadboda@yahoo.com. r am grateful to all the assessors who kindly went through the draft version of this article and pointed to errors of one sort or 8Ilmher. Responsibility for al1 the errors that remain is all mine

DOWNLOAD Ethiopian Bankruptcy Law A Commentary (Part I) pdf

JOURNAL OF ETHIOPIAN LAW

VOL. XXII No. 2

December, 2008

ETHIOPIAN BANKRUPTCY LAW: A COMMENTARY (PART I)
TADDESE LENCHO

The bankruptcies came to us from Italy, bancorotto, bancarotta, gambarotta e la giustizia non impicar _. Every merchant had his bellch C banco..J in the place of exchange; and when he had conducted his business badly, declared himself Jallito  and abandoned his property to his creditors with the proviso thai he retain a good part of it for himself, be free and reputed a very upright man. There was nothing to be said to him, his bench was broken, banco rotlo, banca rotla ; he could even, in certain towns, keep all his property and baulk his creditors, provided he seated himself bare-bottomed on a stone in the presence of all the merchants. This was a mild derivation of the old Roman proverb solvere aut in aere aut in cute-, to pay either with one’s money or one’s skill. But this custom no longer exists; creditors have preferred their money to a bankrupt’s hinder parts.

Voltaire, Philosophical Dictionary, ‘Bankruptcy’

Introduction

It is no exaggeration to state that Ethiopian Bankruptcy Law (tucked away in the last Book of the Commercial Code) is the least known and hence the least practiced in Ethiopia. Since the coming into force of the Commercial Code in 1960, cases having to do with bankruptcy have been few and far in between.’ Why might this be? Is the defect in the law or in the economic environment? Is Ethiopian business environment immune from the natural laws of bankruptcy or has it always gone bankrupt without ever being noticed by the public or mediated by the law?’ The Economist magazine recently quipped that imagining capitalism (business enterprises) without bankruptcy is like imagining Christianity without hell. 3 Perhaps, that is what happened in Ethiopia.

The questions of why bankruptcy laws have become dormant are troubling questions. However, as troubling they are, they cannot be answered in categorical terms. An answer to these questions would require an extensive empirical study of the business environment and the historical factors that might have kept the bankruptcy laws of Ethiopia from having to see the light of the courts.

There is no shortage of theories as to why bankruptcy cases are not as common as the failure of businesses would suggest. One theory puts the blame on the freezing of commerce in the aftermath of the 1974 Ethiopian Revolution, tying the (mis)fortunes of the bankruptcy provisions to the Commercial Code in general.4 The problem with this theory is that it only explains why bankruptcy fell into disuse between 1974 and 1991. It does not explain the situation after 1991 when the economy of Ethiopia was more or less liberalized (seventeen years and counting!).

Another theory is lack of familiarity (of the legal community) with the provisions of bankruptcy in the Commercial Code. Lawyers are a critical piece in the application of the law. If lawyers do not know or understand the law, it is unlikely that the law will ever come to courts even if it were included in the Code. It is what Emperor Haile Sellassie J was emphasizing in his speech on the inauguration of the Journal of Ethiopian Law:

… We have observed that Ethiopia’s rapid progress demands the services of a large number of legal experts … capable of insuring the effective application of the laws

In a recent report commissioned by the USAID, this matter has been aptly emphasized:

There is little demand for change from the debtor side because so little is known about bankruptcy protection. The possibility of reorganization or’ protection arises not only from law, but from knowledge of the law, and that is quite limited.

The third theory points to the foreclosure laws and practices of Ethiopia as probable reasons for the eclipse of bankruptcy. According to the USAJD Commissioned report:

 lenders are using foreclosure law and practice instead of bankruptcy. Secured lenders can institute accelerated proceedings to repossess and liquidate security and do not need to start a bankruptcy action. Frequently, borrowers are’ captive to a single lender, with few other commercial obligations than their bank loan, so that foreclosure effectively deals with most of the debtor’s liabilities, although it does not permit rehabilitation or reorganization and often results in liquidation. 7

Foreclosure powers were granted to banks and selected other creditors only in the last decade and could not entirely explain why bankruptcy practices are not so common.8 It is perhaps nearer to the truth to conclude that multiple factors were conspiring to keep bankruptcy out of the limelight of the practice.

Although cases of bankruptcy have rarely been taken to courts, there are several reasons why one should write about Ethiopian bankruptcy law. First, it is barely known even among the otherwise savvy and seasoned lawyers of Ethiopia. Second, it has now been offered as an independent course for the last five or so years without any reference material. And lack of reference material is always a legitimate inspiration for writing (even if it were just an article). Third, since 1991, Ethiopia has taken on an economic policy whose driving engine is the participation of the private sector, and the private sector needs laws not just for its formation but also for its orderly winding up and possibly for its rehabilitation after bankruptcy.’ It is not that Ethiopia lacks these laws but they are unknown even among those who earn a living from their knowledge of the law.

This commentary is divided into two parts. In the first part, I intend to treat subjects like the background of Ethiopian bankruptcy law, its organization and structure, scope and meaning, and the tests for commencement of bankruptcy under Ethiopian bankruptcy law. In the second part, I intend to throw light on some of the other basic features of Ethiopian bankruptcy law and related subjects of composition and schemes of arrangement.

At the end of each part, I will provide some concluding remarks on what I think would be striking features of Ethiopian bankruptcy law. For these commentaries, I have relied upon as wide a range of literature on the subject of bankruptcy as I could get my hands on. But as repeated quotes and references in the footnotes show, I am indebted primarily to the 2005 UNCITRAL Legislative Guide on Insolvency Law of 2005 (hereinafter simply ‘UNCITRAL’ Guide’).l0 As far as I am concerned, ‘UNCITRAL Guide’ offers the latest and most comprehensive reference on the subject of bankruptcy. The ‘UNCITRAL Guide’ also provides alternative approaches on controversial points of bankruptcy, something one can rarely find in many other sources. .

Corrigenda to proclamations and Regulations


DOWNLOAD the pdf version of Corrigenda to proclamations and Regulations.

“A corrigendum of a legislative text is conventionally thought of as a mere rectification of obvious typing mistakes. It is done after the publication of a legislative text. Its purpose is to realign the published legislative text with the original will of the legislative body by removing mistakes that occurred in the publication process. A corrigendum does not contain any provisions on validity or entry into force. It derives its authority from the text it rectifies, including its legitimacy, legal force and the provisions on its temporal application.” Corrigenda in the Official Journal of the European Union: Community Law as Quicksand (Michal Bobek)

The term corrigendum (plural corrigenda) generally refers to an error that is to be corrected in a printed work after publication. It may also be used to denote list of errors in a printed work as a separate page of corrections, known as an errata page.  Merriam Webster(online dictionary)  defines corrigendum as “ an error in a printed work discovered after printing and shown with its correction on a separate sheet” \

In the following list you will find corrrigenda to proclamations and regulations. According to article 11(b) of House of Peoples’ Representatives working procedure and members’ code of conduct (amendment) proclamation no. 470/2005 the power to ‘undertake the technical correction, where deemed necessary’ is an exclusive power of the speaker of the house. There is no monitoring procedure to ensure that any ‘correction’ introduced by the speaker  does not alter or change the substantive content of the proclamation. What is worse, those errors to be rectified by the speaker are not the ones which are detected after publication. Article 11(b) of proclamation no. 470/2005 empowers the speaker to make correction prior to the publication of the proclamation in the Negarit Gazetta. This in effect means that the speaker of the house holds a law making power in the name of correcting errors. Any error before publication is an exclusive matter to be dealt to the house itself. Even though the basic purpose of corrigenda is to ensure that the published text is similar with the draft approved by the house, Ethiopian law making procedure deviates from the basic rules and principles of legislation acceptable in all legal systems.

The Council of Ministers does not have any legislative procedure which is official to the public and approved by law. Hence, no knows who actually makes correction to regulations.

Corrigenda to proclamations 

1. Corrigendum No. 1/1998 English version

[Repealed by Property Mortgaged or Pledged with Banks (Amendment) Proclamation No. 216/2000]

[Business Mortgage Proclamation No. 98/1998]

Property Mortgaged or Pledged with Banks Proclamation No. 97/1998 is hereby corrected by:

1. omission of the “,” after the word “buyer”, in Article 3, and insertion thereinafter of the phrase “or to take over the property, in consideration of its estimated value as specified in the contract of loan, and have the ownership thereof registered in its own name; in cases where bidders fail to appear upon a secon4 public auction having been held.”; and

2. omission of the “.” at the end, of Article 4, and addition thereinafter of the phrase “or take over the property, in consideration of its estimated value as specified in the contract of 19an,and have the ownership thereof registered in its own name; in cases where bidders fail to appear upon a second public auction having been held.”

2. Corrigendum No. 2/1999 Amharic and English version

[Ethiopian National Archives and Library Proclamation No. 179/1999]

The “2%” in “Article 8(2)” under Article 2(2) of the Investment (Amendment) Proclamation No. 168/1999 shall read “27%”.

3. Corrigendum No. 4/2009       Amharic and English version

[Federal Government of Ethiopia Financial Administration Proclamation No. 648/2009]

The statement under Article 60 of the Ethiopian Building Proclamation No. 624/2009 stated as “This Proclamation shall come into force upon the date of its publication in the Federal Negarit Gazeta” shall be read as “This Proclamation shall come into force after one year from the date of its publication in the Federal Negrit Gazeta.”

4. Corrigendum No. 4/2009   Amharic and English version

[Ethiopian Building Proclamation No. 624/2009]

In this Proclamation the statement under Article 60 stated as “ This Proclamation shall come into force upon the date of its publication in the Federal Negarit Gazeta” shall be read as “This Proclamation shall come into force after one year from the date of its publication in the Federal Negrit Gazeta.”

5. Corrigendum No. 5/2009 English version

[Transaction of Precious Minerals Proclamation No.651/2009]

The English version of Article 23 (1) of the Banking Business Proclamation No. 592/2008 which reads in its second line as “…. The international financial statements standards ….” Is hereby corrected and shall be read as “…international financial reporting standards..”

6. Corrigendum No. 6/2009   English version

[Transaction of Precious Minerals Proclamation No.651/2009]

The English version of the Micro-Financing Business Proclamation No.626/2009 writes the number Article “25” two times, accordingly the latter Article “25” is hereby corrected as Article “26”. Similarly the English version of this same Article 26 in the last paragraph of its sub article (1) which reads as “Birr 500,000” is hereby corrected and shall be read as “Birr 50,000

7. Corrigendum no. 1/2001 Amharic and English version (Amharic corrigenda is from the English corrigenda)

[Ethiopian National Security Council Establishment Proclamation No. 257/2001]

The Fuel price stabilization Fund Establishment Proclamation No. 247/2001 is hereby corrected as

follows: The word “from” after “working days” in Sub- Article (2) of Article 5 is deleted, and the phrase’ ‘of the month next to” is inserted therein.

8. Corrigendum No. 1/2002   Amharic and English version (Amharic corrigenda is from the English corrigenda)

[National Agricultural Input Authority Establishment Proclamation No. 288/2002]

The “Five (5) years” after the word “next” in sub-Article (1) of Article 28 of the Income Tax Proclamation No. 286/2002 shall read “three (3) years.”

9. Corrigendum No. 7/2010   Amharic and English version

[Income Tax (Amendment) Proclamation No.693 /2010]

Article  38  of  the  Definition  of  Powers  and  Duties of  the Executive Organs of  the Federal Democratic  Republic  of  Ethiopia which  reads  “This Proclamation shall come into force a year after  its  publication  in  the  Federal  Negarit  Gazeta.”  is hereby  corrected  and  shall  be  read as  “This Proclamation shall come into force on the  date  of  publication  in  the  Federal Negarit Gazeta.”

Corrigendum to Regulations

Corrigendum No. 1/1999   Amharic and English version

[Electricity operations Council of Ministers Regulations No. 49/1999]

The Customs Tariffs Council of Ministers (Amendment) Regulations of 25 December, 1998 is hereby corrected as follows:

a) the issue number “5thyear No. 27″ shall read “5th year No. 51″; and

b) the page numbers “942″ and “943″ shall read “1025″ and “1026″ respectively.

Repeal of Corrigendum No. 1/998

Property Mortgaged or Pledged with Banks (Amendment) Proclamation No. 216/2000

The Property Mortgaged or Pledged with banks Proclamation No. 97/1998 is hereby amended as follows:

I) The correction made to Article 3 of Proclamation under paragraph (1) of Corrigendum No. 1/998 is hereby deleted and the phrase “or if no buyer appears at the second auction, to acquire the property at the t100r price set for the first auction and have the ownership of the property transferred to it” is inserted after the word’ ‘buyer” on the eighth line of the Article.

2) The correction made to Article 4 of the Proclamation under paragraph (2) of Corrigendum No. 1/1998 is hereby deleted and the phrase’ ‘or if no buyer appears at the second auction, it may acquire the property at the floor price set for the first auction and have the ownership of the property transferred to it” is added after the word.. “buyer” at the end of the Article.

ማረሚያ በአማርኛው ቅጂ ላይ

ማረሚያ[i]

[አዋጅ ቁጥር 351/1995 የከፍተኛ ትምህርት አዋጅ]

1)  አዋጅ ቁጥር 354/1995 ከገጽ 2368-2373 ተብሎ የወጣው የኢሚግሬሽን አዋጅ ገጽ ቁጥሩ የተጻፈው በስህተት ስለሆነ ገጽ ቁጥሩ ከ2268-2273 ተብሎ ይነበብ፡፡

2)  የኢትዮ-የመን የኢኮኖሚ የሳይንስ፤ የቴክኒክ ትብብርና የንግድ ግንኙነት ስምምነት ማጽደቂያ አዋጅ ቁጥሩ 174/1962 ተብሎ የተባለው በስህተት ስለሆነ አዋጅ ቁጥሩ 174/1991 ተብሎ ይነበብ፡፡

ማረሚያ ቁጥር 1/1994

[አዋጅ ቁጥር 257/1994 የኢትዮጵያ ብሔራዊ ደህንነት ምክር ቤት ማቋቋሚያ አዋጅ]

የነዳጅ ዋጋ ማረጋጊያ ፈንድ ማቋቋሚያ አዋጅ ቁጥር 247/1993 ከዚህ የሚከተለው እርምት ተደርጎበታል

በአንቀጽ 5 ንዑስ አንቀጽ (2) “እ.ኤ.አ.” ከሚለው ቀጥሎ “የሚቀጥለው ወር” የሚል ተጨምሮ ይነበብ

ማረሚያ ቁጥር 1/1994

[አዋጅ ቁጥር 288/1994 የብሔራዊ የግብርና ግብዓት ባለስልጣን ማቋቋሚያ አዋጅ]

የገቢ ግብር አዋጅ ቁጥር 286/1994 የሚከተሉት እርማቶች ተደርገውበታል፡፡

  1. አንቀጽ 13 (መ) “ከገቢ” ከሚለው ቀጥሎ “ግብር”የሚል ቃል ተጨምሮ ይነበብ
  2. አንቀጽ 87 ከንዑስ አንቀጽ (2)(ሀ) ቀጥሎ፤ “ለ) 20 ሺ ብር” የሚል ተጨምሮ ይነበብ::

ማረሚያ ቁጥር 2/1991

[አዋጅ ቁጥር 179/1991 የኢትዮጵያ ብሔራዊ ቤተ መዛግብትና ቤተ መጻሕፍት አዋጅ]

በኢንቨስትመንት /ማሻሻያ/ አዋጅ ቁጥር 168/1991 አንቀጽ 2(2) ስር ባለው “አንቀጽ 8(2)” “2 ፐርሰንት” የሚለው “27 ፐርሰንት” ተብሎ ይነበብ

የኢንቨስትመንት (ማሻሻያ) አዋጅ ማውጫው ስር የእንግሊዝኛው ቅጂ 373/2003 የተባለው በስህተት ስለሆነ 375/2003 ተብሎ ይነበብ

ማረሚያ ቁጥር 4/2001

[አዋጅ ቁጥር የኢትዮጵያ ሕንጻ አዋጅ]

በዚህ አዋጅ አንቀጽ 60 “ይህ አዋጅ በፌደራል ነጋሪት ጋዜጣ ታትሞ ከወጣበት ቀን ጀምሮ የጸና ይሆናል” የሚለው “ይህ አዋጅ በፌደራል ነጋሪት ጋዜጣ ታትሞ ከወጣበት ቀን ጀምሮ አንድ ዓመት ካበቃ በኋላ ተፈጻሚ ይሆናል” በሚል ይነበብ፡፡

ማረሚያ ቁጥር 4/2001

[የኢትዮጵያ ፌደራል መንግስት የፋይናንስ አስተዳደር አዋጅ 648/2001]

በኢትዮጵያ የህንጻ አዋጅ ቁጥር 624/2001 አንቀጽ 60 “ይህ አዋጅ በፌደራል ነጋሪት ጋዜጣ ታትሞ ከወጣበት ቀን ጀምሮ የጸና ይሆናል” የሚለው “ይህ አዋጅ በፌደራል ነጋሪት ጋዜጣ ታትሞ ከወጣበት ቀን ጀምሮ አንድ ዓመት ካበቃ በኋላ ተፈጻሚ ይሆናል” በሚል ይነበብ፡፡

ማረሚያ[ii]

[አዋጅ ቁጥር 374/1996 ቅርስን በሕገወጥ መንገድ ከሀገር ማስወጣትን፣ ወደሀገር ውስጥ ማስገባትንና ባለቤትነት ማዞርን ለመከላከል የተደረገውን ዓለም አቀፍ ስምምነት ለማጽደቅ የወጣ አዋጅ]

የኢንቨስትመንት (ማሻሸያ) አዋጅ ማውጫው ስር የእንግሊዝኛው ቅጂ 373/2003 የተባለው በስህተት ስለሆነ 375/2003 ተብሎ ይነበብ፡፡[iii]

ማረሚያ ቁጥር 7/2003

[የገቢ ግብር /ማሻሻያ/ አዋጅ 693/2003]

የኢትዮጵያ  ፌዴራላዊ  ዲሞክራሲያዊ  ሪፐብ ሊክ  አስፈፃሚ  አካላትን  ሥልጣንና  ተግባር  ለመወሰን  በወጣው  አዋጅ  ቁጥር 691/2003 አንቀፅ “8  “ይህ አዋጅ በፌዴራል ነጋሪት ጋዜጣ  ታትሞ ከወጣበት ቀን ከአንድ አመት  በኋላ  ጀምሮ  የፀና  ይሆናል፡፡”  የሚለው  “ይህ አዋጅ  በፌዴራል  ነጋሪት  ጋዜጣ  ታትሞ  ከወጣበት ቀን ጀምሮ  የፀና ይሆናል፡፡”  ተብሎ  ይነበብ፡፡


[i] ማረሚያው ቁጥር የለውም

[ii] ማረሚያው ቁጥር የለውም

[iii] ማረሚያው በአማርኛ ሆኖ የሚያወራው ግን ስለ እንግሊዝኛው ቅጂ ነው፡፡

 

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