COUNCIL OF MINISTERS REGULATION NO. 107/2004
COUNCIL OF MINISTERS REGULATION TO PROVIDE FOR THE DISTRIBUTION OF PROFITS OF PUBLIC ENTERPRISES
The Council of Ministers has issued this Regulation pursuant to Article 5 of the Definitions of Powers and Duties of The Executive Organs of the Federal Democratic Republic of Ethiopia Proclamation No. 4/1994.
1. Short Title
This Regulation may be cited as “Distribution of Profits of Public Enterprises Council of Ministers Regulation No. 107/2004”.
In this Regulation,
1. “Public Enterprise” shall have the meaning assigned to it under Article 2(2) of Proclamation No. 412/2004;
2. “Net Profit” shall have the meaning assigned to it under Article 2(7) Proclamation No. 25/1992;
3. “Authority” means the Public Enterprises Supervising Authority established under Proclamation No. 412/2004;
4. “Ministry” means the Ministry of Trade and Industry.
3. Distribution of Profits
1. The net profits of a public enterprise shall, after deduction of legal reserve pursuant to Article 29(2) of Proclamation No. 25/1992, be distributed as follows:
a) As dividend to the Government 60%
b) To the Industrial Development Fund 40%
2. The distribution of profit may be modified on the basis of a proposal made and submitted to the Council of Ministers by the Ministry notwithstanding the stipulation provided under Sub-Article 1 of this Article.
3. After the dividend to the Government is transferred to same within the time limit fixed under Article 31 of Proclamation No. 25/1992, the money allocated to the Industrial Development Fund shall be paid.
4. Submission of Statement of Profit
Every public enterprise shall submit to the Authority, until the end of April of each fiscal year, a statement on its until the end of April of each fiscal year, a statement on its estimated net profits based on its performance during the preceding nine months and its projected performance for the next three months.
5. Duties of The Authority
1. The Authority shall submit to the Ministry, until the end of the month of May of each fiscal year a statement on the annual net profits of every public enterprise and the distribution of the net profits on the basis of information submitted to it in accordance with Article 4 of this Regulation.
2. The Authority shall, based on provisional financial statements, notify the Ministry until November 23 following the end of each fiscal year of the total of the net profits obtained during the fiscal year. Nonetheless, adjustment shall be made should there be difference between the provisional financial statements and audited financial statements.
6. Purpose of the Fund
The purpose for which the fund is established is to finance the rehabilitation and expansion of existing public enterprises and to undertake studies of public enterprises to be established and to serve as the initial capital for same.
7. Utilization of the Fund
The Fund shall be utilized by the Ministry in Conformity with a directive to be given by the Government.
8. Power to Issue Directives
The Ministry may issue directives, which are necessary for the implementation of this Regulation.
9. Effective Date
This Regulation shall enter into force on the date of publication in the Negarit Gazeta.
Done at Addis Ababa, this 27th day of July, 2004
PRIME MINISTER OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA