The parliament approves the new commercial code, replacing the old ones that has been in place for over 60 years.
The new code, comprised of three books, is expected to ease challenges faced by businesses because of unavailability of legal frameworks to govern some establishments.
The old code has been criticized for being outdated and failing to address existing demands of businesses.
Having 825 articles, the new code gives recognition to holding companies and allows the establishment of private limited company with single member or one-person company.
Shareholders can also hold a virtual meeting under the new code, which has also introduced various insolvency procedures other than bankruptcy including preventive restructuring proceedings, reorganization proceedings, according to Fantu Farris, a legal expert who has participated in the drafting process of the code.
It also allows simplified bankruptcy proceedings for SMEs, while providing protection for minority investors/share-holders through improved corporate transparency and disclosure, shareholders rights and board of directors responsiblity, according to her.