The Option of Participating on Meetings through Video Conferencing and Other Audiovisual Means: Is it Fit for the Purpose?

Abstract

The OHADA Uniform Act on Commercial Companies has since 2014 made amendments relating to the good governance of public limited companies. These amendments are aimed at improving the functioning of the board of directors, bolster shareholders rights and transparency. To improve transparency and traceability of the board of directors activities, the OHADA legislator has introduced the option for directors and shareholders to participate in board meetings and general meetings through videoconferencing or any telecommunication technology. The OHADA Legislator has been applauded for this innovation especially given the fact that shareholders and directors now have the opportunity to participate in the activities of the company meetings whenever they are met with unforeseen circumstances such as the covid 19 pandemic that made governments to restrict movements and gatherings. Our analyses of this provision of the Uniform Act on Commercial Companies, allowing directors and shareholders to attend meetings through videoconferencing and other telecommunication technologies is fit for the purpose of improving the functioning of the board of directors. However, this innovation has some drawbacks that have curtailed it effectiveness. This does not only stem from the fact that the OHADA Legislator makes it optional for companies but also by the fact that there are frequent power failures and high internet cost in Africa as well as sudden technical faults and distracted attendees.