ETHIOPIA Law and Practice Contributed by: Sisay Habte, Tibebe Zewdu, Michael Mengistu and Helina Bezabih, TBeST Law LLP
7.2 Requirements for Directors Concerning Management Risk and Internal Controls Directors have the duty to make certain that sufficient procedures for risk management and internal control are established. In particular, directors have the responsibility of ensuring that the company has adequate capital and liquidity to meet its liabilities in a timely manner, ensure that the company’s governance arrangements are such as to ensure the proper monitoring of the company’s financial statements and posi - tions, ensure submission of accounts and books to auditors when required, set up the reserve funds required by the law; and where the com - pany’s ability to meet its financial obligations diminishes or where the company ceases mak - ing payments, apply for preventive restructuring, reorganisation or bankruptcy, as appropriate.
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