Authorized Share Capital of a Public Limited Company in Cameroon

The authorized share capital of a public limited company (PLC) in Cameroon plays a crucial role in defining its legal and financial framework. It represents the maximum amount a company can raise through issuing shares.

For entrepreneurs and investors looking to establish a PLC in Cameroon, understanding the capital requirements is essential to ensure compliance with corporate laws.

Below are the key points regarding the authorized share capital requirements in Cameroon:

Minimum Authorized Capital Requirements

1. Legal Minimum: The authorized share capital of a public limited company in Cameroon must be at least 10,000,000 CFA francs.
2. Face Value of Shares: This capital is divided into shares, each with a face value of no less than 10,000 CFA francs.

Subscription and Payment of Capital

1. Full Subscription Requirement:
   • The entire capital must be fully subscribed before the company’s Articles of Association are signed or before the constituent general meeting is held.
2. Initial Payment:
   • At least 25% of the face value of shares representing cash contributions must be paid up during the subscription process.
3. Remaining Payment:
   • The balance must be paid within a maximum period of three years from the date the company is registered in the Trade and Personal Property Rights Register.
   • The terms of payment should align with provisions in the Articles of Association or decisions made by the company’s board of directors or managing director.

Special Considerations for Shares

1. Shares with Unpaid Contributions:
   • Shares representing cash contributions that are not fully paid up must be issued as registered shares.
2. Restrictions on Capital Changes:
   • A company cannot increase its capital unless the increase is made through noncash contributions or all outstanding share payments have been settled.
   • Similarly, the company is restricted from issuing bonds until the authorized capital is fully paid up.

Legal Implications and Compliance

• Ensuring compliance with these requirements is vital for the smooth operation and legal standing of the company. Non-compliance can result in legal disputes or restrictions on the company’s ability to raise additional funds or issue securities.

Conclusion

The authorized share capital framework for public limited companies in Cameroon ensures financial stability and legal compliance. Entrepreneurs and investors intending to establish or manage such entities must adhere strictly to these regulations. Proper planning, including phased capital contributions and compliance with registration requirements, can help avoid delays or legal challenges in the company’s operations.

For more information on public limited company laws in Cameroon or guidance on incorporation, feel free to consult legal experts or business advisors specializing in corporate law.

To talk to a lawyer for legal assistance, Contact PRIME TIME LAW OFFICES