According to Article 4 of the revised OHADA Law of 2014 governing companies in Cameroon, the commercial company is created by two (2) or several persons that agree, through an agreement, to contribute to an activity cash, in-kind or service assets to share profits or enjoy revenues that may derive therefrom. Members commit to bear company losses under the conditions provided for by this uniform Act.
The commercial company is created in the common interest of members.
Alert procedure by the provisions of the revised OHADA Law of 2014 regulating commercial companies in Cameroon, auditor(s) can engage an alert procedure towards the company management if they realized that the acts of the management are likely to jeopardize the operations of the company.
Companies other than share companies
In companies other than public limited companies, the auditor may request, by hand-delivered letter against a receipt, or by registered mail with a request for acknowledgement of receipt, explanations from the manager who is required to respond, by the conditions and within the time limits outlined in the following articles, on any fact likely to jeopardize the company operations, which the auditor noticed while reviewing the documents forwarded to him or any fact he uncovered in the performance of his duties.
The manager shall respond by hand-delivered letter against a receipt or by registered mail with a request for acknowledgement of receipt within fifteen (15) days from the receipt of the request for an explanation. In his reply, he shall give an analysis of the situation and, where appropriate, state measures being contemplated.
Upon receipt of the response or, failing to receive a response within fifteen (15) days, the auditor shall inform the competent court of his efforts.
Share Companies
In a public limited company and a simplified public limited company, the auditor may initiate an alert procedure by requesting an explanation, by hand-delivered letter against a receipt or by registered mail with a request for acknowledgement of receipt, to the chairman of the board of directors, the chief executive officer or the general director, as the case may be, on any fact likely to jeopardize the company operations which he noticed while reviewing the documents forwarded to him or any fact he uncovered during the performance of his duties.
The chairman of the board of directors, the chief executive officer or the general director or the president, as the case may be, shall reply by hand-delivered letter against a receipt or by registered mail with a request for acknowledgement of receipt within fifteen (15) days of receipt of the request for an explanation. In his response, he shall give an analysis of the situation and state, where appropriate, measures being contemplated.
Failing to receive a reply or where the latter is not satisfactory, the auditor shall invite the chairman of the board of directors, or the chief executive officer, as the case may be, to call a meeting of the board of directors, the general director or the chairman to deliberate on the matter raised.