The Government of Cameroon has intensified efforts to modernise the country’s financial system by training 540 lawyers and notaries from the Northwest and Southwest regions on the implementation of the 2014 Law on the Dematerialisation of Securities.
The three-day capacity-building seminar, held in Limbe and organised by the Autonomous Sinking Fund (known by its French acronym CAA) in collaboration with the Cameroon Bar Association, seeks to improve compliance with legislation requiring companies to replace paper share certificates with electronic account registrations. The reform is intended to strengthen transparency, improve investor confidence and facilitate the transfer of company shares through a secure central securities depository.
Mr Kendem John Forghab, Deputy General Manager of the Autonomous Sinking Fund revealed that despite the importance of the reform, the Northwest and Southwest regions account for fewer than ten of the approximately 1,400 public limited companies that have so far complied with the law nationwide. They attributed the low compliance rate partly to limited awareness and insufficient training among legal professionals responsible for guiding companies through the process.
Explaining the benefits of the reform, Mr Kendem John Forghab noted that many shareholders previously held paper share certificates, which were vulnerable to loss, theft or destruction. Under the new system, ownership is recorded electronically in the central securities depository, eliminating the risks associated with physical certificates and making transactions more secure and efficient.
The CAA deputy GM further stressed that all transferable shares are now deposited with the central depository, enabling investors to buy or sell shares more easily regardless of their location. “Somebody who is in China, or anywhere else in the world, can access the system,” he explained, adding that electronic registration provides companies with access to a wider investment market and simplifies the transfer of ownership.
The three-day training placed particular emphasis on the role of lawyers and notaries in the Common Law jurisdictions of the Northwest and Southwest who are expected to assist companies in complying with the law, advise clients on the dematerialisation process and ensure that new share issuances are properly registered with the Autonomous Sinking Fund.
Opening the seminar, the Minister of Finance Louis-Paul Motazé described the reform as a key pillar of Cameroon’s financial sector modernisation and the National Development Strategy 2020–2030. Louis-Paul Motazé urged participants to apply the knowledge gained during the seminar to deliver quality legal services and help companies in the two regions fully comply with the legislation.
Louis-Paul Motazé underscored that “The reform can only achieve its objectives if legal professionals understand the procedures and effectively support businesses in implementing them,” and encouraged participants to become ambassadors of the reform within their respective communities.
This first-of-its-kind seminar in the English-speaking regions is expected to significantly improve awareness of securities dematerialisation in the area, enhance legal certainty for investors and encourage more companies to integrate into Cameroon’s modern electronic securities system
Government Trains 540 Legal Professionals from NW/SW On -Dematerialisation of Securities in Limbe
