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A revised companies code was adopted by Ohada on 30 January 2014 (The Uniform Act on Commercial Companies and Economic Interest Groups; the “Revised Code”). The Revised Code adds tailwind to a fast developing market and further incentivizes investors, including private equity investors, to enter the dynamic African markets.
The Revised Code addresses investors’ concerns regarding the somewhat dated and inflexible previous code by allowing the formation of “SAS” companies with their simplified and more flexible governance, and the conduct of meetings by video. More sophisticated shares and securities have also been further developed, like share classes with varied dividend, voting and other rights, as well as convertible and subordinated bonds.
Above all, the Revised Code clarifies many important provisions and reduces ambiguities, including the stipulation that shareholder agreements are now expressly permitted.