According to the OHADA Law on Commercial companies and Economic Interest Groups, where there are losses reflected in the summary financial statements of a company, and these losses proof that the shareholders’ equity of the company is below half of the company’s authorized capital, the Board of Directors or the Managing Director as the case maybe shall be bound within 4 months following the approval of the accounts that showed the losses to convene an extraordinary general meeting to take a decision as to whether or not the company should be wound up prematurely.
Where the winding up of the company is not ordered, the company shall be bound no later than at the close of the second fiscal year following the one in which the losses were recorded to engage another procedure.