Title: Piercing of Corporate Veil in Private Limited Company and One Member Private Limited Company under the Ethiopian Commercial Code: A Legal Appraisal
Authors: Mihretu Yizengaw Dinku (LL. B, LL.M)
Volume: 9
Issue: 3
Pages: 385-389
Publication Date: 2025/03/28
Abstract:
This article aimed to appraising the legal frameworks of piercing of corporate veil under the new Ethiopian commercial code in regard to private limited company and one-member private limited company. In the article general overview of company, attributes of company, and common grounds of piercing of corporate veil is overviewed. Company is a business organization having its own attributes of legal personality, limited liability, separate ownership and shared ownership. The common circumstances of piercing of corporate veil are the fault of directors, managers, inadequate capital, failure to have separate ownership and governance and others which are prescribed by the laws of the country. The article makes legal appraisal of piercing of corporate veil under the new Ethiopian commercial code in private limited company and one-member private limited company. The article oversees the new commercial code and articulates circumstances which pierce limited liability of shareholders.