Managers’ Power, Ultra vires and Third Parties under Ethiopian Law: a Critique of Ethiopian Mineral Development SC v GTT Trading

Abstract

Ethiopian Mineral Development Share Company [hereinafter, EMD], a public enterprise converted into a share company for privatisation purposes, as per the Privatisation of Public Enterprises Proclamation1 [hereinafter, the Privatization Proclamation], had a supply contract with GTT Trading. This contract was later cancelled unilaterally by the former. Subsequently, a dispute arose over the legality of the unilateral cancellation of the contract by EMD. As Art 10(4) (2) of the contract envisioned arbitral settlement of disputes arising out of the contract, GTT Trading proceeded to appoint arbitrators with a view to set arbitration in motion. Yet, EMD did not appoint arbitrators, an act which delayed the arbitration process. As a result, GTT Trading approached the Federal First Instance Court to appoint arbitrators on behalf of the dilatory EMD