The Control of Non-Cash Contributions to Companies

Master's Thesis from the year 2010 in the subject Business economics - Law grade: A Central European University Budapest (Law Faculty) course: Law of Corporations language: English abstract: AbstractThe capital of a company is considered as security for creditors and legal systems provide the framework to safeguard this security. This paper demonstrates overvaluation of non-cash contributions as a risk this security is to be safeguarded from. It outlines what a cmprehensive control system on non-cash contributions looks like and comparatively assesses the laws of the EC Germany France England and Ethiopia as to the mechanisms they provide to control this form of contribution. The paper shows that the three member states of of the EC have transposed the Community law on the subject of control of non-cashcontributions in a similar fashion and that they converge on a number of areas regarding their approaches to controlling non-cash contributions like definition of valid forms of tnon-cash contributions and the expert valuation payment and disclosure requirements. The above three legal systems are selected because of their relevance to the Ethiopian law for they are the sources of the latter's Commercial Code. Compared to these legal systems the control system over non-csh-contributions under the Ethiopian law involves a number of matters that need addressed through amendement of the law.