Joint Venture under the 1960 Commercial Code of Ethiopia: A Comparative Analysis with the UK and German Legal Systems

Abstract

The Ethiopian joint venture law is comparable with German and English
laws in respect of confidentiality. In relation to nature, transfer of
shares, liability of partners, and profits and losses distribution policy, the
Ethiopian joint venture law is more related with the English one. Whereas,
with regard to the requirement of written agreement, the Ethiopian law is
more parallel with that of the German silent partnership since in both
countries such requirement is waived by their respective laws. Additionally,
concerning the “who manages†issue, it can be said that at least in terms of
composition and structure, the Ethiopian law is more comparable with the
German silent partnership. This Article comes up with some best experiences
to Ethiopia drawn from the comparative analysis. It urges some prudent
legal framework to be espoused for the proper practice of joint ventures, i.e.
in the way it addresses the ever more pressing needs for joint venture
engagements in Ethiopia. Accordingly, some legal improvements will be
suggested, mainly, on issues of confidentiality, dissolution, and the need for
written agreement.