According to article 173 of the OHADA Law of 2014, a group of companies is a group formed by companies bound to one another by various relations which allow one of them to control the others.
Control over a company shall mean effectively holding decision-making power within such a company.
A natural person or a legal entity shall be deemed to have control of a company where:
1) He holds, directly or indirectly or through an intermediary, more than half of the voting rights;
2) He holds more than half of the voting rights by an agreement or agreements entered into with other members.
INVESTING IN ANOTHER COMPANY IN CAMEROON
When a company holds a fraction of the capital equal to or greater than ten percent (10%) of another company, the former shall be deemed, within the meaning of this uniform Act, to hold equity participation in the latter.
A public limited or private limited company shall not hold shares or equity interests in another company if the latter holds a fraction of its capital over ten percent (10%).
Failing an agreement between companies concerned to regularize the situation, the company holding the lowest fraction of the capital of the other shall transfer its shares or equity interests. If both companies hold equal fractions of each other’s capital, each company must reduce its interest in the other so that it does not exceed ten percent (10%) of the capital of the other.
Until their actual transfer, shares or equity interests are transferred will be deprived of voting rights and the right to receive dividends attached to it.
Where a company other than a public limited company or a private limited company has, among its members, a public limited company or a private limited company that holds more than ten percent (10%) of its capital, the former may not have shares or equity interests of the latter.
If the interests of the public limited company or the private limited company limited in the company are equal or less than ten percent (10%), it shall not hold more than ten percent (10%) of the capital of the public limited company or the private limited company.
In both cases provided under this article, where a company other than the public limited company or the private limited company already owns securities of a such public limited company or private limited company, it must transfer them. Until their actual transfer, shares or equity interests are transferred will be deprived of voting rights and the right to receive dividends.