On November 25, 2014, the Federal High Court decided to uphold the Lower Court’s decision to invalidate the decision at the Addis Abeba Chamber of Commerce & Sectoral Association’s ninth annual general meeting. It also invalidated all decisions passed on its December 19, 2013, meeting, noting that it violated the representatives of the member company, united insurance’s right of vote.
The appeal was filed by AACCSA on May 27, 2014 to reverse the Lideta Federal First Instance Court’s decision. its appeal was rejected without requiring the appearance of United Insurance on the grounds of article 337 of the civil procedure code which states that if the appellant does not have additional evidence, the court may dismiss the appeal without calling the respondent to appear.
The case was initially instituted by United Insurance Company to the Lideta First Instance Court on December 3, 2014. United Insurance Company, a member of AACCSA, had raised three claims on the Lower Court. The first was that AACCSA barred its membership right to vote through its representative Zafu Eyesuswork during the ninth general meeting of the chamber, held on December 19, 2014. United claimed that this was in contradiction to the AACCSA’s 2008 article of association 16(4) and the council’s article of association 14(3), which clearly provide the right of any member whose membership is not canceled and who fulfills its obligation to vote in person or through its representative.
As proof, United produced oral and documentary evidences that show the company’s representative was prohibited from taking an election card and deprived his right to elect, be elected and express his opinion. The defendant, however, did not provide evidence to disprove the evidence produced by United, the Lower Court said.
The second claim was that under proclamation number 341/95, the establishing and governing law of the council, and the December 2008 article of association, the presence of more than 50pc of members of the chamber is required for the quorum’s fulfilment. The chamber held the ninth annual general meeting on December 19, 2013, disregarding the legal quorum in the presence of only 889 out of 14,000 total members, therefore all decisions made, including the election on the meeting, should be declared invalid.
In addition to the above claims, United Insurance also asked the court to annul the amendment made on the 2008 article of association by the sixth general meeting of October 28, 2010. It stated that the meeting does not fulfill the required quorum number and two thirds majority votes to amend the former article of association.
Accordingly, the Lower Court ruled for the invalidation of the ninth annual meeting and all decisions passed on its December 19, 2013 meeting, reasoning that it violates the representative of the company’s right to vote, elect and be elected. However, it declined to invalidate the amendment of the article of association made in the sixth general meeting of October 28, 2010. It was after this decision was made that the chamber appealed to the High Court to reverse the Lower Court’s decision on the invalidation of the ninth annual meeting.
On cross appeal, United had also appealed to the High Court, dissatisfied by the Lower Court’s judgment not to invalidate the amendment made on the 2008 article of association by the sixth general meeting of 2010. The Court has given an appointment date for December 11, 2014, to look at this appeal.
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