Notes on Interpretation of Article 1030 of the Commercial Code of Ethiopia

Abstract

One core policy justification behind bankruptcy law in general and suspect transaction in particular is equitable treatment of creditors. One of the core tools to do so is invalidation of what is called suspect transactions or preferred transaction as common law legal system call it. Our commercial law is very archaic and it does not fit the existing situation. On top of this, those clear provisions of the law, for various reasons, misinterpreted by the actors of bankruptcy mainly court and commissioner. In this note I wish, if I can, try to set a guide as to the correct interpretation of Article 1030 of the Commercial Code in which both commissioner and court goes wrong. Unless this provision interpreted correctly it will affect not only the individual’s rights but also defeats the whole essence of bankruptcy law.