Evaluating the Forms and Stages of Financial Disclosure of Company Life under OHADA Law

Abstract

The general rule that commercial companies are required to make public their financial situation to the shareholders and other stakeholders such as investors has been established. However, this is not always the case as companies in Cameroon have devised certain means to escape this responsibility or make improper and untrue disclosures. They exploit the loopholes of legal and institutional mechanisms for financial disclosure. An analytical approach of the various legislations related to financial disclosure of commercial companies under the Organization for the Harmonization of Business Law in Africa (OHADA) through the doctrinal research method along relevant texts on financial disclosure within companies in Cameroon is therefore examined. This study has as its principal objective to examine the different stages of financial disclosure of commercial companies under OHADA Law. The achievement of this objective was guided by the Doctrinal research methodology consisting of primary and secondary data. Primary data consist principally of the OHADA Uniform Acts and other relevant legislations. Secondary data used is from textbooks, journals, internet and other. Our research outcome is to the effect that, despite the effective mechanism put in place by OHADA to encourage financial disclosure of companies, there is still need for more in relation of creating a sound atmosphere for financial disclosure as well as sanctions related to concealment or fraudulent disclosures. Recommendations are made to the effect that, a more explicit and unambiguous provisions be made by OHADA in the domain of Accounting Law and the OHADA legislature should provide a harmonised criminal law punishing disclosure ills rather than leaving member states the powers to do so.