Document Authentication & Registration Office (DARO) announced it launched new registration and authentication method for share companies which only require the presence of half of the shareholders plus one.

Previously it was demanded all the founding shareholders should present themselves in order to establish a share company.

According to Fortune the shift was made after DARO concluded a MoU with Federal Investment Agency (FIA), Ministry of Trade (MoT) and Ethiopian Chamber of Commerce & Sectoral Association (ECCSA), two weeks ago.

Communication Director at DARO, Alemayehu Debassu, said his office got to work after the conclusion of the MoU in order to avoid the extended time it was taking to establish share companies.

The topic was brought up during the Public Private Consultation Forum of the ECCSA which witnessed the Trade Minister Kebede Chane.

According to a presentation that was made, the system was culprit for a huge expenses and a desperate wastage of resources.

After forum MoT organized a team electing its members from itself, DARO, ECCSA, Ministry of Justice and the Investment Agency. The committee studied the problems and made some suggestions.

On Saturday, May 19, 2014, the committee tabled a study which stipulates nine solutions, out of which five are going to be implemented by DARO, and the rest by MoT and FIA.

Commenting on this Alemayehu said, “The improvement is going to be done in the process of work implementations, without amendments to the law”.

According to Fortune, the new system will enable founding share holders to make legitimate minutes and decisions with only 50 plus one percent of the total share holders. DARO will attend the meeting and collect the signatures of those who are present and approve the minutes and decisions on the spot. Election for board of directors will also be approved the office if six of the total 11 directors are
present.

Almayehu noted, “The new implementation system became operational from the day we signed the agreement”.

Source: Fortune