PROCLAMATION No. 50/1996 A PROCLAMATION TO AMEND THE ESTABLISHMENT OF THE BOARD OF TRUSTEE

PROCLAMATION No. 50/1996

A PROCLAMATION TO AMEND THE ESTABLISHMENT OF THE BOARD OF TRUSTEE

FOR PRIVATIZED PUBLIC ENTERPRISES PROCLAMATION

WHEREAS, it has become necessary to amend the Establishment the Board of Trustee for Privatized Public Enterprises Proclamation;

NOW,THEREFORE, in accordance with Article 55(1) of the Constitution, it is hereby proclaimed as follows:

1. Short Title

This Proclamation may be cited as the “Establishment of the Board of Trustee for Privatized Public Enterprises (Amendment) Proclamation No. 50/1996”.

2. Amendment

The Establishment of the Board of Trustee for Privatized Public Enterprises Proclamation No. 17/1996 is amended as follows:

1) The following new sub-Article (5) is added after sub-Article (4) of the Article 9:

“5/ to approve the organizational structure of the Board and directives on its staff regulation prepared in line with the basic principles of federal civil service laws;”

2) The former sub-Articles (5) and (6) of Article 9 are renumbered as sub-Articles (6) and (7), respectively.

3) The phrase “in accordance with the federal civil service laws” appearing in sub-Article (2) (c) of Article 12 is deleted and replaced by the phrase “in accordance with directives approved by the Board of Management”.

3. Effective Date

This Proclamation shall enter into force as of the 5th day of December, 1996.

Done at Addis Ababa, this 5th day of December, 1996.

NEGASO GIDADA(DR.)

PRESIDENT OF THE FEDERAL DEMOCRATIC

REPUBLIC OF ETHIOPIA

 

PROCLAMATION NO. 49/1996 A PROCLAMATION TO PROVIDE FOR THE REGULATION OF TELECOMMUNICATIONS

PROCLAMATION NO. 49/1996

A PROCLAMATION TO PROVIDE FOR THE

REGULATION OF TELECOMMUNICATIONS

WHEREAS, telecommunication service performs an essential role in the Country’s economic and social development;

WHEREAS, the establishment of a separate regulatory organ other than the operator and the prescription of regulatory provisions are found necessary to make the telecommunication service more efficient and reliable;

NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby Proclaimed as follows:

PART ONE

GENERAL

1. Short Title

This Proclamation may be cited as the “Telecommunication Proclamation No. 49/1996”.

2. Definitions

In this Proclamation, unless the context requires otherwise:
1) “telecommunication” means the emission, transmission or reception, through the agency of electricity or electromagnetism, of any sounds, signs, signals, writing, images or intelligence of any nature by wire, radio, optical or other electromagnetic systems whether or not such signs, signals, writing, images, sounds or intelligence have been subjected to rearrangement, computation or other processes by any means in the course of their transmission, emission or reception;
2) “telecommunication line” means any wire, cable, tower, mast, antenna, pole or any other structure or equipment used or intended to be used in connection with a telecommunication system;
3) “basic telecommunication service” means telephone, telegram or telex service;
4) “telecommunication equipment” includes any appliance, apparatus or accessory used or intended to be used for telecommunication services;
5) “TVRO” means an apparatus used only for the reception of satellite television broadcasts;
6) “call-back service” means the use of dial tone of a foreign telecommunication operator for international connections without the knowledge of the domestic telecommunication operator;
7) “Ministry” and “Minister” means the Ministry and Minister of Transport and communication, respectively:
8) “person” means a natural or a juridical person.

PART TWO

THE TELECOMMUNICATION AGENCY

3. Establishment

1) The Ethiopian Telecommunication Agency ( hereinafter “the Agency”) is hereby established as an autonomous federal agency having its own legal personality.
2) The Agency shall be accountable to the Ministry.

4. Head Office

The Agency shall have its head office in Addis Ababa and may have branch offices elsewhere as may be necessary.

5. Objectives

The objectives of the Agency shall be to promote the development of high quality, efficient, reliable and affordable telecommunication services.

6. Powers and Duties
The Agency shall have the following powers and duties:

1) to ensure that telecommunication services are operated in a manner that will best serve and contribute to the Country’s economic and social development;

2) to specify technical standards and procedures for the provision of telecommunication services;

3) to ensure that telecommunication services conform to the specified standards of quality;
4) to regulate tariffs relating to basic telecommunication services;

5) to license and supervise operators of telecommunication services;
6) to regulate types of telecommunication equipment which may be connected to a telecommunication system;
7) to authorize and supervise the use of frequencies allotted to Ethiopia;
8) where authorized by the Minister, subject to the appropriate laws and government directives, to represent the Government in international conferences and international organizations concerned with telecommunications; and to follow up the implementation of treaties dealing with telecommunications to which Ethiopia is a party.

9) to collaborate with educational institutions in order to promote technical education in the fields of telecommunications;

10) to collect licence fees in accordance with the rate approved by the Ministry;

11) to own property, to enter into contracts and to sue and be sued in its own name;

12) to perform such other related activities as may be necessary for the attainment of its objectives.

7. Management of the Agency

1) The Agency shall have a General Manager, to be appointed by the Government upon the recommendation of the Minister, and the necessary staff;

2) The General Manger shall be the chief executive officer of the Agency and shall, subject to the general directives of the Minister, direct and administer the activities of the Agency;

3) Without limiting the generality of sub-Article (2) of this Article, the General Manager shall:

(a) exercise the powers and duties of the Agency specified under Article 6 of this Proclamation;

(b) employ and administer the employees of the Agency in accordance with directives approved by the Government following the basic principles of the federal civil service laws;

(c) prepare and submit to the Ministry the programme and budget of the Agency; and implement same upon approval;

(d) effect expenditure in accordance with the budget approved for the Agency;

(e) represent the Agency in all its dealings with third parties;

(f) prepare and submit to the Ministry the activity and financial reports of the Agency.

4) The General Manager may delegate part of his powers and duties to the employees of the Agency to the extent necessary for the efficient performance of the activities of the Agency; provided, however, that in the case of an employee who acts on behalf of the General Manager for more than thirty days. Prior approval of the Minister shall be required.

8. Budget
1) The budget of the Agency shall be drawn from the following sources:

(a) government subsidy;

(b) license fees;

(c) any other source.

2) The fund referred to in sub-Article (1) of this Article shall be deposited in a bank account opened in the name of the Agency and be expended for the carrying out of the activities of the Agency.

9. Books of Accounts
1) The Agency shall keep complete and accurate books of accounts.

2) The books of accounts and other financial documents of the Agency shall be audited annually by the Auditor General or by an auditor designated by him.

PART THREE

REQUIREMENT AND CONDITIONS OF LICENCE

10. Operator’s Licence

1) No person may operate a telecommunication service without obtaining licence from the Agency.

2) No licence shall be required for the use of telecommunication systems or telecommunication equipment by the police, the armed forces and any other services directly employed by the State for national security.

11. Conditions of Licence

1) A licence to operate a telecommunication service may be subject to such conditions as the Agency considers necessary for promoting the objectives stated in Article 5 of this Proclamation.

2) Without limiting the generality of sub-Article(1) of this Article, a licence may include the following conditions:

(a) the provision of services to rural or other specified areas;

(b) requiring an operator to publish in such manner as may be specified in the licence a notice stating the charges and other terms and conditions that are to be applicable to services provided;

(c) provision of service on priority basis to the Government or specified organizations;

(d) criteria for setting tariffs regarding the service ;

(e) requiring an operator to comply with such technical standards or requirements including service performance standards as may be specified in the licence.

3) The Agency may modify any condition of a licence if it considers it in the public interest to do so.

12. Tariffs

The tariffs applicable to basic telecommunication services shall be studied by the Agency and submitted to the Government for approval.

13. Technical Standards

1) The Agency may determine technical standards regarding telecommunications including customer premises equipment.

2) Any directive issued for the determination of standard shall be published in such manner as the Agency may direct.

14. Approval of Equipment

1) The Agency may, by public notice, specify any telecommunication equipment that requires the Agency’s approval before it may be connected to a telecommunication system;

2) Without prejudice to sub-Article (1) of this Article, the following equipment require the approval of the Agency:

(a) radio communication equipment;

(b) TVRO

3) The Agency shall consider the following criteria in approving types of telecommunication equipment:

(a) safety to life and health;

(b) maintenance of the telecommunication network including conditions regarding data protection;

(c) electromagnetic compatibility;

(d) appropriate use of electromagnetic frequency spectrum;

(e) interpretability between the telecommunication equipment and the telecommunications networks;

(f) other considerations which the Agency may determine by directives.

4) It is prohibited to manufacture, import or distribute, without obtaining prior approval, telecommunications equipment that require the approval of the Agency.

15. Radiocommunications

1) The Agency shall be responsible for the management and authorization of the use of frequencies allocated to Ethiopia in accordance with international conventions.

2) No person shall, except in accordance with a permit obtained from the Agency, possess, install or operate radiocommunication apparatus.

3) The provisions of sub-Article (2) of this Article shall not be applicable to radio apparatus for use by the police, the armed forces and any other services directly employed by the State.

16. Assignment of Frequency

1) The Agency may assign frequencies to be used for telecommunications, radiocommunication services and radio and television broadcasting;

2) The Agency shall coordinate the use of frequencies both locally and internationally; and monitor the proper use of same;

3) In deciding upon an application for assignment of frequencies, regard shall be made to the present use and future needs of the Country;

4) Frequencies may be assigned to different persons on time-sharing basis.

17. Power to Inspect

1) The Agency may assign inspectors to ascertain that the requirements of this Proclamation and its decisions made hereunder are complied with.

2) An inspector assigned pursuant to sub-Article (1) of this Article, may enter and inspect, during working hours, the premises of a telecommunication operator or any place on which he believes on reasonable grounds there is any radio apparatus.

3) An inspector shall have the power to inspect any telecommunication equipment and to examine and make copies of any relevant documents.

4) An inspector shall show his identification card before entering any place for inspection.

PART FOUR

USE OF LAND AND BUILDINGS

FOR TELECOMMUNICATION LINES

18. The Use of Land and Buildings

1) Any telecommunication operator may enter any land and perform all acts necessary for the purpose of installing, repairing, improving, examining and altering or removing a telecommunication line.

2) Where a telecommunication line is essentially to pass upon any building the telecommunication operator may install such line in such manner that the installation shall in no way damage the building.

3) Any telecommunication operator may cut down any tree or branch which may in any way cause damage to or is likely to impede a telecommunication line.

4) Before entering any place for purposes specified in sub- Article (1) or (2) of this Article, an operator shall give a ten – day written notice to the possessor of the land or owner of the building stating the nature of the acts intended to be done.

5) If the possessor of the land or the owner of the building has any objection against the performance of the intended act, he may lodge his objection with the Agency within the notice period specified under sub-Article (4) of this Article.

6) The Agency may upon giving each party an opportunity to be heard, uphold the objection or authorize, either unconditionally or subject to such conditions as it thinks fit, the performance of the intended acts.

19. Removal or Alteration of Telecommunication Line

1) The possessor of land or the owner of a building used by an operator for the installation of a telecommunication line pursuant to Article 18 of this Proclamation may, if he has good cause, apply to the Agency requesting the removal or alteration of the telecommunication line.

2) Upon ascertaining the existence of good cause in submitting an application under sub Article (1) of this Article and the existence of alternatives for the installation of the telecommunication line, the Agency may order the removal of the line or the alteration of its position.

20. Compensation

1) A telecommunication operator shall be liable for the payment of fair compensation to the possessor of land or the owner of a building to whom it has inflicted damages in the course of exercising its power to use land or building.

2) A person who has caused the removal or alteration of a telecommunication line pursuant to Article 19 of this Proclamation shall be liable for the payment of fair compensation to the telecommunication operator.

21. Compulsory Acquisition of Land
An operator may compulsorily acquire any privately possessed lands for public use in accordance with the law.

PART FIVE

MISCELLANEOUS PROVISIONS

22. Town Plans

1) Any town Plan shall clearly indicate lines of telecommunication networks.

2) Any telecommunication operator shall follow the town plan in installing a telecommunication line.

23. Other constructions

1) Any construction or excavation work or permanent fixtures of any nature in the vicinity of a telecommunication line shall require the prior consent of the telecommunication operator.

2) The telecommunication operator shall have the duty to respond, within thirty days, to a request submitted to it pursuant to sub-Article (1) of this Article.

3) Where the telecommunication operator unduly withholds its consent, the Agency may authorize the carrying out of the activities referred to in sub-Article(1) of this Article where it ascertains that they will not cause damage or any impediment to the telecommunication line.

4) Any construction work or fixtures of permanent nature shall be at least two meters away from the installation of a telecommunication line;

5) When any construction work is hindering an existing telecommunication line, the operator may, by giving thirty days notice, request the owner or the possessor to remove it.

6) If the owner or possessor fails to remove the construction work, the operator shall have the right to remove it.

24. Prohibitions
1) No person is allowed to connect or disconnect telecommunication lines other than authorized employees of an operator or a person licensed by the Agency.

2) The use of call-back service is prohibited.

25. penalties

1) Any person who has contravened the provisions of Article 15(2) or 24(2) of this Proclamation shall be punishable with rigorous imprisonment from two to five years and with fine not exceeding Birr 10,000.

2) Without prejudice to the provisions of sub-Article (1) of this Article, any radio communication apparatus, a TVRO or any other telecommunication equipment that require the authorization of the Agency shall be forfeited to the Agency if found in the possession of a person who has not obtained the necessary approval from the Agency.

3) Any person who contravenes other provisions of this Proclamation shall be punished in accordance with the Penal Code.

26. Repeal
The following are hereby repealed:
1) the Declaration of Telephones Proclamation No. 55/1944;

2) the Maintenance of Telephone Services Proclamation No. 114/1950;

3) the Imperial Board of Telecommunications establishment Proclamation No. 131/1952.

27. Effective Date
This Proclamation shall enter into force as of the 28th day of November, 1996.

Done at Addis Ababa, this 28th day of November, 1996.

Negaso Gidada (Dr.)

President of the Federal Democratic

Republic of Ethiopia

PROCLAMATION NO. 370/2003 CONDOMINIUM PROCLAMATION

PROCLAMATION NO. 370/2003

CONDOMINIUM PROCLAMATION

 

          WHEREAS, it is deemed necessary to implement other alternatives of urban land use in addition to plot basis urban land use to narrow the imbalance between the demand for and supply of housing;

            WHEREAS, it is recognized that the allocation of urban land to a high rise or a row of houses condominium building will contribute to maintain the beauty of the urban areas and to the improvement of urban land use and supply of housing through making great number of people benefit and commonly hold a small size of urban land;

WHEREAS, it is essential to the development of condominium to create favorable conditions, to private developers and co-operatives, which have a major contribution towards the development of condominium and also to purchases of units and to all others, which have a right, related to the condominuim.

NOW, THEREFORE, in accordance with Article 55 Sub Article (1) of the Federal Democratic Republic of Ethiopia it is here by proclaimed as follows

PART ONE

GENERAL

 

1.       Short Title

This Proclamation may be cited as the “Condominium Proclamation No. 370/2003.”

2.                 Definition

In this Proclamation :-

1/         “Condominium” means a building for residential or other purpose with five or more separately owned units and common elements, in a high-rise building or in a row of houses, and includes the land holding of the building,

2/         “Common elements” means all that are part of the condominium except the units,

3/         “Common expense” means any expense related to the performance of the objectives and duties of unit owners association and any expenses specified as common expenses in this proclamation or in a declaration.

4/         “Common surplus” means the excess of all receipts of the owners association over the expenses of the association.

5/         “Declarant” means any one who registers a building under of this proclamation.

6/         “Declaration” means an instrument that describes the rights and obligations of the unit owners association and of each unit owner, and includes any amendments thereto.

7/         “Description” means an instrument that specifies the name and location of the condominium, the boundaries of units and of common elements, and includes all amendments thereto.

8/         “Limited common elements” means common elements designated for the exclusive use of only one or some of the units.

9/         “Unit owners Association” means an association of unit owners created under this proclamation.

10/       “Person” means natural or legal person.

11/       “Registrar” means an office assigned to register a condominium in accordance with this proclamation.

12/       “Unit” means a part of the building consisting one or more rooms and designated for a specific purpose in a declaration.

3.                 Scope of Aplication

This proclamation shall apply on Addis Ababa and Dire Dawa City Administration

PART TWO

REGISTRATION AND CERTIFICATE

4.                 Registration of Building

1/         Subject to provisions of this proclamation, a building may be registered as a condominium when the owner or owners or their agents submit written application declaring the intention that the building be governed under this proclamation together with a declaration; description, by-laws, and rules.

2/         The contents of declaration, description by-laws and rules shall be determined by the Regulation issued to implement this proclamation.

3/         The declaration description by laws and rules shall be approved and registered by the registrar.

5.                 Certificate of Registration

Certificate of registration shall be issued for the declarant where the building is registered under this proclamation.

6.                 Effect of Registration

1/         The building together with the land holding and related rights; benefits and obligations shall be governed by this proclamation.

2/         The building in the description shall be divided into units and common elements.

3/         A unit owners association shall be created as an independent legal person.

7.                 Amendment to declaration description by-laws and rules

1/         The amendment of declaration description by-laws and rules shall be approved by a 2/3rd majority vote of unit owners.

2/         The amendment of declaration description by-laws and rules approved by unit owners shall be effective only upon registration and issuance of certificate thereof.

PART THREE

OWNERSHIP

8.                 Unit Ownership

1/         Subject to this proclamation a unit owner is entitled to ownership right upon the unit.

2/         A unit of a building registered under this proclamation may be subject of any legal transaction.

9.                 Common Elements

1/         Subject to the restrictions in this proclamation, the declaration, description by-laws and rules any unit owner shall have the right to properly use the common elements.

2/         The right to use common elements is undivided and attached to the unit ownership.

3/         The percentage of the undivided share of interest in the common elements attached to the unit ownership shall be determined in the declaration.

4/         The percentage of the undivided interest in the common elements shall be a part of the unit ownership and any legal act on a unit shall also be effective upon the undivided share of interest.

5/         Unless otherwise provided in this proclamation common elements are not divisible.

PART FOUR

UNIT OWNERS ASSOCIATION

10.            The Association

The unit owners association is an association established with a view to obtaining mutual benefits other than securing or sharing of profits.

11.            Objectives

The unit owners association shall have the following objectives:

1/         Manage the condominium on behalf of unit owners;

2/         Ensure the peace and security of residents in the building;

3/         Ensure that unit owners, occupiers of units, lessees of the common elements agents and employees of the association, comply with this proclamation, declaration, description, by-laws and rules;

4/         Perform other necessary activities in the interest of unit owners mutual benefit.

12.            Membership

Every unit owner in a condominium shall be a member of the respective unit owners association.

13.            Powers and Duties of the Association

The unit owners association shall have the following powers and duties:

1/         Adopt or amend the declaration description by-laws and rules under this proclamation.

2/         Approve budgets and amendments there to;

3/         Determine the conditions on the use of common elements;

4/         Lease, subject to security and transfer the common elements;

5/         Determine fines, fees and contributions;

6/         Hire, administer fire employees of the association;

7/         Own, subject to security and transfer property;

8/         Enter into contracts, to sue or be sued.

14.            Powers and Duties of the General Meeting of Unit Owners

 

The unit owners general meeting shall have the following powers and duties:

1/         Approve the declaration, description and amendments thereto;

2/         Approve the by-laws and rules, and amendments thereto;

3/         Elect and remove members of the board of directors;

4/         Hear and decide on activity and audit reports of the association;

5/         Decide on amalgamation of the unit owners association with other unit owners associations and on termination of the condominium under this proclamation.

6/         Approve the annual plan and budget of the association;

7/         Decide on such other matters as may be presented by the board of directors.

15.            Meeting of Unit Owners

1/         The unit owners association shall hold annual general meeting.

2/         The unit owners association shall hold other meetings as may be called by the board of directors.

3/         A general meeting shall be held where owners of 25% of the units request in writing for a general meeting.

4/         There shall be a quorum in any general meeting where owners who own 50% +1 (fifty persent plus one) and above of the units are present.

5/         Unit owners may cast vote personally or by proxy.

6/         Unless otherwise provided in this proclamation all matters proposed for the consideration of the unit owners at a meeting of owners shall be decided by majority votes of owners.

16.            Board of Directors

1/         The board of directors is the managerial organ of unit owners association.

2/         Provided that the declarant may assign the first board of directors, the unit owners shall from among the unit owners elect the directors.

17.            The First Board of Directors

1/         The declarant shall designate the first board of directors after registration of the building under this proclamation.

2/         Unit owners may elect additional members to the first board of directors or elect members for a succeeding board of directors.

3/         The period of election under this Article, and the transitions of powers between the first board of directors and the succeeding board of directors shall be determined by regulations to be issued under this proclamation.

18.            Powers and Duties of Board of Directors

The board of directors shall have the following powers and duties:

1/         Call the unit owners’ meeting under this proclamation and keep minutes;

2/         Prepare amendments for the declaration, description, by-laws and rules and implement it upon approval;

3/         Prepare annual planes and the budget and implement it upon approval;

4/         Keep the records and accounts of the association;

5/         Implement the decisions of the general meetings of unit owners;

6/         Submit reports on the activities of the association, to the general meetings of unit owners;

7/         Perform such other duties as may be assigned by the general meetings of unit owners.

19.            By-laws and Rules

The unit owners association shall have by-laws and rules.

20.            Auditor

1/         Unit owners association shall have auditors.

2/         The appointment, number, qualification duties and dismissal of auditors shall be determined by regulation.

PART FIVE

SALE AND LEASE OF A UNIT

21.            Sale By the Declarant

1/         The declarant may sell units before or after registration of the building.

2/         The declarant shall deliver a disclosure document to every person who purchases a unit from the declarant before or after the registration of the building under this proclamation.

3/         The contract of sale shall not bind the purchaser until the declarant delivers him disclosure document.

4/         A purchaser who received a disclosure document may, before transfer of ownership, cancel the contract of sale and notify in writing the cancellation of the contract to the declarant.

5/         The declarant shall deliver an amended disclosure document whenever there is a material change in matters declared in the disclosure document. The purchaser who received an amended disclosure or who discovered a material change may notify in writhing the declarant the cancellation of the contract.

6/         A declarant who entered into a contract of sale of a unit before the registration of the building shall complete construction and register the building without delay.

22.            Lease of a Unit

1/         The owner of a unit who leases or renews lease of a unit shall notify to the unit owners association the contract thereto, and shall provide a copy of the contract of lease or renewal.

2/         The owner of a unit shall notify the unit owners association the termination of the contract of lease and provide the relevant documents that evidence the termination.

3/           The owner of a unit who leases a unit shall provide the lessee with a copy of the declaration and description, by-laws and rules of the condominium.

23.            Interim Occupancy

The contract of sale of a unit may provide the occupancy of a unit by the purchaser before registration of the building and transfer of ownership and may determine the occupancy fee to be paid by the purchaser and the duties of the declarant during the interim occupancy.

PART SIX

COMMON EXPENSES AND SURPLUS

24.            Contribution by Owners

1/         Without prejudice to other provisions of this proclamation unit owners shall contribute to cover common expenses in proportion to their undivided interest in the common elements.

2/         Sub Article 1 of this Article shall be applicable even if, the owner has waived the right to use the common elements or he has a claim against unit owners association or the declaration, by-laws and rules restrict him from using the common elements.

25.            The Right to Lien

 

1/         The unit owners’ association shall have lien right in proportion to the unpaid common expense against the owner’s unit and appurtenant common interest. The amount needed from the unit owner shall include interest on and expenses due to the delay of the payment of common expenses.

2/         The unit owners association must in accordance with this proclamation obtain a certificate evidencing its right of lien within three months period, beginning from the default.

3/         A lien right not registered with in the period fixed under Sub Article 2 of this Article shall have no effect after the lapse of the three months period.

4/         The certificate evidencing the right to lien shall specify the defaulted amount and the expenses incurred by the association to recover the payment from the unit owner.

5/         The unit owners association shall give 15 days notice to the concerned owners before the registration of the lien.

6/         The unit owners’ association shall cause the registration of payment and give a testimonial to the owner who paid the defaulted contribution under this Article.

7/         The right to lien of the unit owners association under this Article shall have priority over registered or not registered rights except tax and duties of the government.

26.            Common Surplus

 

1/         The common Surplus obtained by the unit owners association shall be used to cover common expenses or shall be deposited in the reserve fund.

2/         Common profit shall not be divided among unit owners except upon the dissolution of the association.

27.            Repair and Maintenance

1/         Repair after damage caused by accident:

a)      The unit owners association shall repair units, common elements and the assets of the association damaged by accident.

b)            Repair after damage caused by accident shall include repairing and replacing the damaged part. But it does not include repairing and replacing the damage caused to improvements made to a unit.

c)            For the purpose of this proclamation improvements to a unit shall be determined in accordance with the standard set in the declaration to which a particular unit belong.

d)           Notwithstanding Sub Article 1(b) of this Article, the unit owners association shall have a responsibility to repair improvements made to a unit before the registration of the building.

2/         Maintenance

a)                  The unit owners association shall have a responsibility to maintain common elements.

b)                  Each unit owner shall have a responsibility to maintain the limited common element reserved for his or their exclusive use.

c)                  Each unit owner or owners shall have a responsibility to maintain the limited common element reserved for his or their exclusive use.

d)                 The responsibility of maintenance shall mean wear and tear caused by normal use or old age.

3/         Maintenance for the unit of owners

a)                  The unit owners association may maintain a common element or a unit, which a unit owner is responsible but failed to maintain with in a reasonable period of time.

b)                  The cost of the maintenance done under this Sub Article by the unit owners association shall be added to the contributions of the defaulting unit owner to the common expenses.

28.            Reserve Fund

 

1/         The unit owners’ association shall establish a reserve fund for repair and maintenance and may use it where necessary.

2)         The unit owners’ association shall collect contributions from owners for the reserve fund.

3)         The Reserve Fund Under this Article shall be the property of the unit owners association. And it shall not be divided among members except under this proclamation.

 

PART SEVEN

AMALGAMATION OF ASSOCIATION

29.            Registration

1/         Without prejudice to the provisions of this proclamation two or more unit owners associations may amalgamate by registering with the registrar the Declaration, description, by-laws and rules for the amalgamated association.

2/         The registrar must ensure the decision for amalgamation is ratified by 80%  of unit owners of each association and is signed by duly authorized representatives of each association.

3/         The amalgamated declaration, description, by-laws and rules shall be presented and by approved by the general meeting held to decide on amalgamation.

4/         The last year audit report of the amalgamating unit owners associations shall also be notified to members of each association at a meeting mentioned under Sub Article 3.

30.            Effect of Registration

1/         The associations are amalgamated and one amalgamated association shall be established,

2/         The units and common elements of the amalgamated association shall be units and common elements of the amalgamated association.

3/         The declaration, description, by laws and rules of each amalgamated association shall cease to apply.

4/         Without prejudice to Article 31 of this proclamation, directors of each amalgamated association shall together constitute the first directors of the amalgamated association.

5/         The members of the amalgamated association shall designate one or more auditors serving until election is held under Article 31 of this proclamation.

6/         The declaration, description, by laws and rules approved and registered under Article 29 of this proclamation shall be the declaration, description, by laws and rules of the amalgamating association.

7/         The rights and duties of the amalgamated associations shall be transferred to the amalgamate d association.

31.            Election of Directors and Auditors

The general meeting of the amalgamated association shall, with in 90 days of the registration of the declaration, description, by-laws and rules of the amalgamated association elect members of the board of directors and designate auditors.

PART EIGHT

TERMINATION OF CONDOMINIUM

32.             Consent of Owners

 

The association shall notify in writing to the registrar if 80% of the owners vote for termination of the condominium.

33.            Substantial Damage

1/         Whenever the board of directors decides there is substantial damage to the building it must submit the matter to the general meeting and the latter shall decide on the extent of the damage and whether to terminate the condominium.

2/         The board shall notify the registrar if 80% of the owners vote for termination of the condominium in the general meeting held under Sub Article 1 of this Article.

3/         The board must repair the damage if the unit owners do not vote in favor of the termination by a majority determined by this Article.

34.            Sale

1/         If the condominium or part of the common element is sold, this proclamation shall cease to govern the respective condominium or common element thereof.

2/         To make a sale under this Article, the association shall obtain.

a)                  90% vote of unit owners in favor of sale, and

b)                  Consent expressed in writing of each unit owners to whom the limited common elements are designated where the sale includes limited common elements.

35.            Expropriation for Public Interest

A condominium or a common element expropriated for public interest shall cease to be governed by this proclamation.

36.            Proceeds and compensation

1/         The unit owners shall share the proceeds of sale or compensation received for condominium or common elements sold or expropriated under Article 34 and 35 of this proclamation, in the same proportion to their interest in the common element.

2/         Notwithstanding Sub Article 1 of this Article the proceeds of sale of limited common elements shall be divided among owners, to whom it is designated.

37.            Registration

1/         The registrar shall examine the notice under Article 32 and Article 33 of this proclamation and shall register and deliver a certificate.

2/         This proclamation shall cases to govern the condominium up on the delivery of the certificate.

38.            Distribution of Assets

When the condominium ceases to be governed by this proclamation,

1/         The asset of the association shall be used to pay the debts of the association and

2/         The remaining shall be divided among the owners in proportion to their common interest.

PART NINE

Co-operatives’ Condominium

39.            Establishment

Co-operatives may be established for the purpose of building a condominium.

40.            Applicability of Co-operative societies  Proclamation No.147/1999

1/         The co-operatives proclamation No.147/98 shall be applicable on co-operatives established for the purpose of building a condominium

2/         This proclamation shall be applicable on co-operatives established for the purpose of building a condominium up on registration under this proclamation.

41.            Registration of the Building

1/         The management committee of the co-operative shall up on completion of construction, register the building under this proclamation.

2/         The management committee, which registers the building under this Article shall become the first board of directors and shall have the powers and duties of the board under this proclamation.

3/         The control committee under proclamation No. 147/98 shall be an auditor under this proclamation.

4/         The unit owners may elect a new board of directors and designate auditor with in 90 days from registration of the building.

PART TEN

MISCELLANEOUS

42.            Power to issue Regulations

The City Administrator may issue Regulations necessary for the implementation of this proclamation.

43.            Applicability of Other Laws

1/         Articles 1281 to Article 1308 of the 1960 civil code of Ethiopia shall not be applicable on a condominium governed under this proclamation.

2/         Any law, custom or practice shall not be applicable on matters dealt with under this proclamation.

44.            Effective Date

This Proclamation shall enter into force on date of its publication in the Negarit Gazeta.

Done at Addis Ababa, this 11th day of September, 2003.

GIRMA WOLDEGIORGIS

PRESIDENT OF THE FEDERAL

DEMOCRATIC REPUBLIC OF ETHIOPIA

PROCLAMATION NO. 98/1998 A PROCLAMATION TO PROVIDE FOR BUSINESS MORTGAGE

PROCLAMATION NO. 98/1998

A PROCLAMATION TO PROVIDE FOR BUSINESS MORTGAGE

WHEREAS, it is stated under Article 186 of the Commercial Code that the manner of keeping register of mortgage of business and canceling entries shall be specified by law;

WHEREAS, it is also stated under Article 1175(1) of the Commercial Code that the provisions of Article 179 of the code relating to registration of Commercial Mortgage shall come into force on such day and on such conditions as shall be notified by order published in the Negarit Gazeta;

WHEREAS, in order to create conducive environment to the economic development by enabling banks to efficiently collect debts from debtors whose business has been mortgaged with the banks and thereby establishing a good business culture;

NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:

PART ONE

GENERAL

1. Short Title

This Proclamation may be cited as “Business Mortgage Proclamation No, 98/ 1998”.

2. Definition

In this Proclamation:

1) “Business” means a business specified under the 1960 Commercial Code of Ethiopia;

2) “Bureau” means Regional or City Bureau of Commerce and Industry or a Regional or City authority entrusted with the power to register mortgages;

3) “City” means Addis Ababa, Dire Dawa or any City which is accountable to the Federal Government;

4) “Region” means a region specified under Art. 47 of the Constitution of the Federal Democratic Republic of Ethiopia;

5) “Person” means a natural or juridical Person

PART TWO

REGISTRATION OF BUSINESS MORTGAGE

3. Keeping of Register

1) Register of mortgage of business shall be kept in each Region or City.

2) The manner of organizing and keeping of register of mortgage shall be determined by the Executive Organ of the Region or City.

4. Requirement ofBusiness License

In order to mortgage a business, the business shall be one which has been registered and given business license by the appropriate Federal or Regional authority.

5. Application for Registration

1) Any request for registration mortgage of business may be submitted by the concerned person.

2) The request for registration of mortgage shall be submitted by filling in two copies the application forms for registration prepared by the Bureau.

3) The Applicant shall attach the contract or other evidence which is the basis for the request of registration.

4) When the forms are presented to the Bureau, the Bureau shall, after verifying the forms, give consecutive numbers in the order of their submission.

6. Content of Application form for Registration

1) The Bureau shall prepare application form for registration.

2) The application form for registration shall include the following:

a) the name and address of the applicant or agent requesting for registration;

b) if the business has been mortgaged previously the registry number and date of registry;

c) whether the mortgage emanates from the law or contract;

d) whether the application for registration is for making new registration or amending the existing registration;

e) the day, month and year of the filling of the form.

7. Identification Marks

1) The secured creditor may put identification mark on the property mortgaged based on Article 175(1)(g) and Article 179(1)(e) of the Commercial Code.

2) The identification marks made in accordance with sub- Article (1) of this Article shall be entered in the Register.

8. Information entered in the Register

1) Important information entered in the register, in particular:

a) the day, month and year of the entry of the mortgage in the Register;

b) any amount of money or other sums both in numbers and words;

shall be written clearly.

2) any information entered in the register shall be written in ink which does not fade-out.

9. Registration and Registration Fee

If an application form for registration of mortgage with the necessary documents has been presented and verified by the Bureau, the applicant shall pay registration fee.

10. Correction of Information Entered in the Register

1) Any information entered in the register, may be corrected if it is found to be incomplete or incorrect.

2) The Bureau shall issue directives regarding correction of information entered in the register.

11. Inspection

The Bureau may, in order to investigate or inspect the status of the business registered as a mortgage, inspect the said business on site or request information. The owner has an obligation to cooperate thereto.

 

12. Cancellation Procedure

1) A person who requests for the cancellation of a mortgage from the register shall submit the agreement allowing the release of the mortgage or the final judgment of the court.

2) The registrar shall, after verifying the document submitted to it, cancel the mortgage from the register.

PART THREE

SELLING OF BUSINESS MORTGAGE BY AUCTION

13. Agreement of Mortgage

Notwithstanding the provisions of Art. 189 of the Commercial Code, an agreement which authorizes a secured creditor bank whose claim is not paid to sell the mortgaged business, by auction upon giving a prior notice of at least 30 days to the debtor, and to transfer the ownership of the business to the buyer or to take over the business, in consideration of its estimated value as specified in the contract of loan, and have the ownership thereof registered in its own name; in cases where bidders fail to appear upon a second public auction having been held shall be valid.

14. Claim on Mortgaged Business

A secured creditor bank which, prior to the effective date of this Proclamation, has a claim on business mortgage, registered in the Awraja Court in accordance with Article 1175(2) of the Commercial Code as a result of a legal imposition to register mortgage on a business, may sell the business by auction upon by giving a prior notice of at least 30 days to the debtor and transfer the ownership to the buyer or take over the business, in consideration of its estimated value as specified in the contract of loan, and have the ownership thereof registered in its own name; in cases where bidders fail to appear upon a second public auction having been held.

15. Relationship between the Bank and the Debtor

The sale made in accordance with Articles 13 and 14 of this proclamation shall be deemed to have been executed on behalf of the debtor.

16. Application of the Civil Procedure Code to Auction

The provisions of Article 394-449 of the Civil Procedure Code shall, mutatis mutandis, be applicable while the Bank is exercising its power of selling the business mortgage by auction.

17. Liability of the Bank

The Bank shall be liable for any damage it causes to the debtor in the process of selling in violation of the relevant provisions of the Civil Procedure Code specified under Article 16 of this Proclamation.

18. Powers and Duties of the Bureau

1) The Bureau which has registered the business mortgage shall have the powers and duties to take the necessary measures for carrying out the sale by auction.

2) If the Bureau, while taking action in accordance with sub- Article (1) of this Article, finds it necessary to use police force, it may order police.

19. Cases Pending before the Court

Any suit or decree on execution, pending before a court prior to the coming into force of this Proclamation, may be terminated upon application by the creditor bank with which the business has been mortgaged and the bank may sell the business by auction and transfer the property to the buyer in accordance with this Proclamation.

PART FOUR

MISCELLANEOUS Provision

20. Applicability of the Commercial Code

1) The relevant provisions of the 1960 Commercial Code shall be applicable in mortgage of business.

2) For the purpose of this Proclamation, the provisions in the commercial Code concerning mortgage of business shall be read as follows:

a) if it concerns a region the word “Teklay-gizat” shall be read as “Region” and the “Ministry of Commerce and Industry” shall be read as “Bureau”.

b) if it concerns city the word “Teklay-gizat” shall be read as “City” and the “Ministry of Commerce and Industry” shall be read as “Bureau”.

21. Fees

Fees for registration of mortgage and related services based on the Commercial Code and this Proclamation shall be determined by City or Regional law.

22. Effective Date

The provisions of Art. 179 of the Commercial Code on registration of mortgage and the provisions of this Proclamation shall enter into force as of the 19th day of February, 1998.

Done at Addis Ababa, this 19th day of February, 1998.

NEGASO GIDADA (DR.)

PRESIDENT OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

 

Corrigendum No. 1/1998

Property Mortgaged or pledged with Banks Proclamation No.97/1998 is hereby corrected by:

1. Omission of the “,” after the word “buyer”, in Article 3, and insertion thereinafter of the phrase “or to take over the property, in consideration of its estimated value as specified in the contract of loan, and have the ownership thereof registered in its own name; in cases where bidders fail to appear upon a second public auction having been held.”

2. Omission of the “,” at the end, of Article 4, and addition thereinafter of the phrase “or take over the property, in consideration of its estimated value as specified in the contract of loan, and have the ownership thereof registered in its own name; in cases where bidders fail to appear upon a second public auction having been held.”

 

PROCLAMATION NO. 97/1998 A PROCLAMATION TO PROVIDE FOR PROPERTY MORTGAGED OR PLEDGED WITH BY BANKS

PROCLAMATION NO. 97/1998

A PROCLAMATION TO PROVIDE FOR PROPERTY MORTGAGED OR PLEDGED WITH BY BANKS

WHEREAS, it takes rather too long a time to obtain judgment, from courts of law, for sale of property mortgaged or pledged with banks and to subsequently have it executed;

WHEREAS, consequently, banking business thriving on interest payments on loans it provides from public moneys received by way of saving deposits or acquired from other sources, has been adversely affected.

WHEREAS, in order to create a conducive environment to economic development by enabling banks to collect their debts from debtors efficiently and thereby promoting a good business culture, it is necessary to amend the Civil Code concerning the sale of property mortgaged or pledged with banks;

NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:

1. Short Title

This Proclamation may be cited as the “property Mortgaged or Pledged with Banks Proclamation No. 97/1998”.

2. Definition

In this Proclamation “Registrar” means in the case of mortgage, a Regional or City organ responsible for registering an immovable property or in the case of pledge, an organ with the power to witness the signing of a contract of pledge and deposit same.

3. Contract of Mortgage or Pledge

Notwithstanding the provisions of Articles 2851 and 3060 of the Civil Code, an agreement authorizing a creditor bank with which a property has been mortgaged or pledged and whose claim is not paid within the time stipulated in the contract, to sell the said property by auction upon giving a prior notice of at least 30 days to the debtor and to transfer the ownership of the property to the buyer, shall be valid.

4. Claim on Mortgaged or Pledged Property

A creditor bank which, prior the effective date of this Proclamation, has a claim on property mortgaged or pledged with it, may sell the property by auction upon giving a prior notice of at least 30 days and transfer the ownership of the property to the buyer.

5. Relationship between the Bank and the Debtor

The sale made in accordance with Article 3 and 4 of this Proclamation shall be deemed to have been executed on behalf of the debtor.

6. Application of the Civil Procedure code to Auction

The Provisions of Article 394-449 of the Civil Procedure Code shall, mutatis mutandis, be applicable while the Bank is exercising its power of selling the mortgaged or pledged property by auction.

7. Liability of the Bank

The Bank shall be liable for any damage it causes to the debtor in the process of selling by auction in violation of the relevant provisions of the Civil Procedure Code specified under Article 6 of this Proclamation.

8. Powers and Duties of the Registrar

1. The Registrar shall have the powers and duties to take the necessary measure for carrying out the sale by auction.

2. If the Registrar, while taking action in accordance with sub- Article (1) of this Article, finds it necessary to use police force, he may order the police.

9. Cases Pending before Court

Any suit or decree on execution pending before a court prior to the coming into force of this Proclamation may be terminated upon application by the creditor bank with which the property has been mortgaged or pledged and the bank may sell and transfer the property to the buyer in accordance with this Proclamation.

10. Repealed Law

The Civil Code (Amendment) Proclamation No. 65/1997 is hereby repealed.

11. Transitional Provision

Any action taken in accordance with the Civil Code (Amendment) Proclamation No. 65/1997 prior to the effective date of this Proclamation shall be governed by this Proclamation.

 

12. Inapplicable laws

Any law which is inconsistent with this Proclamation shall not be applicable.

13. Effective Date

This Proclamation shall enter into force as of the 19th day of February, 1998.

Done at Addis Ababa, this 19th day of February, 1998.

NEGASO GIDADA (DR.)

PRESIDENT OF THE FEDERAL DEMOCRATIC

REPUBLIC OF ETHIOPIA