HOW TO CHANGE COMPANY SHAREHOLDER(S) IN CAMEROON

INTRODUCTION

After registering a company you’ll inevitably have to make some important decisions. One of the biggest questions you’ll have to answer is how to change shareholders Cameroon. Shareholders of a company are the real owners of the Company. Shares are allotted to them based on the Company’s Share Capital. If a company wishes to change her shareholders and or transfer its shares to another person there are steps required by Law that she take to make the change.

REASONS FOR CHANGE OF COMPANY SHAREHOLDER

There are many reasons why you may want or need to change a shareholder, ranging from internal management requirements to changes in legislation.

  1. Death of company shareholder
  2. Resignation
  3. Unpaid shares
  4. Misconduct

PROCEDURAL STEPS FOR CHANGE OF COMPANY SHAREHOLDER

  1. Prepare an Application for Change of Shareholder in your Company letter head addressed to the Trade and Personal Property Rights Registry.
  2. Prepare a Board Resolution removing the Shareholder.
  3. Prepare Resignation letter to be signed by the outgoing Shareholder.
  4. Prepare a share transfer instrument.
  5. Print MO 2 Form and fill in the blank spaces.
  6. Photocopy all the Company documents; Certificate, Application Form and the Memorandum of Association.
  7. Submit all the above listed documents and the Directors I.D and await the Change.

CHECKLIST OF DOCUMENTS TO BE FILED FOR CHANGE OF COMPANY SHAREHOLDER

  1. Copy of the special resolution signed by shareholders
  2. Copy of the amended memorandum of association
  3. Copy of old memorandum of association
  4. M02 Form

CONCLUSION

The procedure to change shareholders is technical and strict and as such, it is advisable for the company board to brief the services of a corporate attorney/notary. The company board resolution must be drafted appropriately so the amended articles of associated expressly captures the changes.

Article by Barr. Mafany Victor Ngando

Kinsmen Advocates Law Firm

“The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstance”