Where because losses recorded in the summary financial statements state that the company equity has been reduced to less than half of the stated capital, the board of directors or the general director, as the case may be, is required, within four (4) months following the approval of the accounts that showed the loss, to call an extraordinary general meeting to decide whether the early dissolution of the company shall occur.
Where the dissolution is not declared, the company is required, no later than at the close of the second fiscal year following that in which the losses were recorded, to reduce its capital by an amount at least equal to the number of losses that could not be posted against retained earnings if, within that period, equity has not been restored up to a value of at least equal to half of the stated capital.
The decision of the extraordinary general meeting shall be filed with the registry of commerce and securities in the State party of the headquarters.
It shall be published in a newspaper authorized to publish legal notices, of the headquarters location.
Failing to call a general meeting, and in the event, such a meeting was unable to validly deliberate during the last meeting, any interested party may take legal action to request the dissolution of the company.
The same shall apply in the event the provisions of article 665 of the OHADA Law have not been complied with.
The competent court before which an action for dissolution is brought may grant the company a maximum period of six (6) months to regularize the situation.