Council of Ministers of OHADA , the Prime Minister opened the 40th session in Grand Bassam
The agenda of this important session included, inter alia, the examination of financial files and normative activities of OHADA.
Regarding financial files, the Council of Ministers took note of the financial report of OHADA and the report of the Auditor on the combined accounts of OHADA Institutions for the year 2014, which certifies, without reservation, the accounts and the financial statements of the Institutions and concludes that they comply with international financial reporting standards.
The Council of Ministers then fixed the 2016 budget, and instructed that the draft 2017 budget be presented to the Council in the form of program budget.
Concerning normative activities, the Council of Ministers took note of the progress made in the revision process of the Uniform Act on the organization and harmonization of business accounting, and of the Uniform Act relating to arbitration. But above all, it adopted a new Uniform Act organizing collective proceedings for wiping off debts (AUPC).
The revised U.A. takes into account the precepts of the legal economic analysis and the best international legal practices. key innovations include:
- The definition of key concepts to facilitate the implementation and interpretation of the new Uniform Act;
- Widening the scope of implementation of the new U.A.;
- The establishment of a conciliation procedure to safeguard companies facing difficulties;
- The establishment of simplified procedures for preventive settlement, legal redress and liquidation of assets that are suitable to small business entities;
- The definition of deadlines the observance of which is sanctioned so as to reduce the implementation timeframe of collective proceedings and help achieve the stated objectives;
- The definition of a legal framework for the activities of legal representatives , namely bankruptcy administrators and experts in a bid to ensure competence, ethics and guide their remuneration;
- The establishment of a “new cash” privilege for those who make new loans to company facing difficulties so as to facilitate their consolidation and recovery;
- The Clarification of preference rights of creditors;The establishment of a new cross-border insolvency regime based on the Model Law of UNCITRAL.
The new U.A marks a major qualitative leap forward. It seeks to speed up and strengthen the efficiency of collective proceedings, facilitate the rescue of viable companies and the substantial payment of creditors. It is therefore likely to support the development of the credit market and the private sector in OHADA countries; it will be an important lever of access to better financing for businesses, job creation and consolidation as well as a tool to promote economic growth in the Member States of OHADA ./-
Grand-Bassam, 11th September 2015.
The Permanent Secretary,
Pr Dorothé C. SOSSA