Business Law
Alemayehu Yismaw Demamu
Abstract
State-owned enterprises take on various legal statuses across jurisdictions, and sometimes, even within the same jurisdiction. Also, state-owned enterprises pursue multiple commercial and public service objectives. In Ethiopia, relevant laws define the status and objectives of state-owned enterprises. ...
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State-owned enterprises take on various legal statuses across jurisdictions, and sometimes, even within the same jurisdiction. Also, state-owned enterprises pursue multiple commercial and public service objectives. In Ethiopia, relevant laws define the status and objectives of state-owned enterprises. These laws have been however criticized for inadequately regulating the legal status and objectives of state-owned enterprises. This article appraises these laws in light of the OECD Guidelines on Corporate Governance of State-owned Enterprises, the World Bank toolkit on Corporate Governance of State-owned Enterprises, and national best practices. Thus, it finds that the existing laws on the status and objectives of state-owned enterprises do not cope with global practices. They establish multiple forms of statuses and mandate state-owned enterprises with expansive and potentially competing objectives. This situation causes state-owned enterprises to face multifaceted problems. The laws need improvement to incorporate the best rules of status and objectives of state-owned enterprises.
