The legality of cassation
Decision 23019

Recently FDRE’s Cassation bench gave binding interpretation as to the period time (limit) to challenge resolutions of Meetings of a P.L.C. The Cassation took an interpretative stance which is binding all over Ethiopia as per article 26(3) of  Federal Courts establishment Proclamation No 1234/2021. According to the Bench’s file No 230139 interpretative stance, only resolution of a P.L.C’s General Meeting minute content on procedural matter like calling manner of meetings, can be challenged only within 3 months period of time: whereas contents of a registered minutes of a P.L.C’s General Meeting decision related to legality and other substantive matters can be challenged within 10 years’ time limit.
Now, what is the legal basis of the bench to reach at this interpretation stance? The commercial Code Proclamation 166/1960 which puts a period of  3 months limitation to challenge resolutions for any cause from  their entry to the Commercial register is no more a law. This proclamation is repealed by proclamation 1243/2021. The provision of this extra-ordinary Negarit Gazette on P.L.C , from Article 495-533 has in no point discussions about meetings decisions challenging period time either resolutions in the Commercial register or anywhere else.
From the provisions of the Commercial Code of Ethiopia  (Article 495-533), the cross-referring provision .i.e. Article 527 (1) dictates , only article 392-403 apply to issues of general meeting from the provisions of a share company. Actually, it is article 391(2) of the commercial code that puts time periods or limits within which one may challenge resolutions in the commercial register or in the archive of a company. The lawmaker seems deliberate not to cross-refer article 391 provision of a share company to P.L.C.
Henceforth , what is the legal basis of the Cassation’s bench to set 3 month period for procedural matter under file No 230139? Can courts make law under the cover of legal interpretation? This triggers debate and is debatable indeed!!