| dc.description.abstract |
Widening the ownership base of companies is imperative to bring about all inclusive socio economic
development i11 a country. Following the reintroduction of 'fiee market economic policy in Ethiopia. the
formation, and expansion ofprivate business organization has a recent history. This study examines the
need. prospects and challenges nj widening the ownership base of share companies in Bahir Dar City
Administration. The paper consults both doctrinal and empirical evidences and came up with the result
thatsliare companies in Bahir Dar city Administration have narrow ownership base with the limited
participation of the public. '171e low shareholding investment of the public in Bahir Dar is 1101 because of
unwillingness of the public but inability of the public to invest.Share companies in Bahir Dar City
Administration are categorized us "non market center .. share companies with less thanfifiy shareholder»
and "market center' share companies with misdeeds. Indeed, all share companies in the city are
characterized by private subscription of shares and narrow ownership base. Absence of sound legal.
institutional and policy framework, the growing trend of "market center" share companies and lack t?l
public awareness about shares and share investment, this paper argues. are the major challenges for
widening the ownership base of share companies in Bahir Dar city. This paper recommends that
legislatlve measures have to he taken i11 order to protect investors and hons/ the shareholding investment
of the public. it suggest the separation of business from polisics and recommend the government to stay
away from actions affecting the well development of stock market. Moreover, the papers recommend the
ARNS trade bureau to conduct public awareness creation programs.
Key words: Ownership, Share Companies. Shareholders. Widening Ownership Base |
en_US |