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TABLE OF CONTENTS

Chapter 1 - The Central African Economic and Customs Union (UDEAC)
I. The Economic Union
II. The Customs Union
III. The UDEAC's Institutions

Chapter 2 - Establishing a Commercial Presence in Cameroon

I. Corporation-Like Companies
A) The Société Anonyme (SA)
B) The Société A Responsabilité Limitée (SARL)

II. Partnership-Like Entities: Societés de Personnes
A) The Société en Nom Collectif (General Partnership)
B) The Société en Commandite (Limited Partnership)
C) The Société en Participation (Undisclosed Partnership)
D) The Société Civile (Civil Partnership)

III. The Economic Interest Group (GIE)

Chapter 3 - The Cameroonian Tax System

I. Individual Income Taxation
A) Liability
B) Regulation

II. Company Income Taxation
A) Proportional tax on income floating capital (PTOFC) - taxe proportionnelle sur les revenus de capitaux mobiliers (TPRCM)
B) Company Income Tax

Chapter 4 - Investment Incentives Available in Cameroon

I. The Investment Code
A) The Basic Regime
B) The Small and Medium Scale Enterprises Regime
C) The Strategic Regime
D) The Reinvestment Regime

II. The Free Zone Regime
A. Commercial Benefits
B. Tax Concessions
C. Customs Benefits
D. Special Provisions Relating to Labour Regulations
E. Other Zone Related Incentives and Benefits

Chapter 5 - Dispute and Resolution in Cameroon

I. The Cameroonian Court System
A) The Courts
B) The Litigation Procedure

II. Arbitration

Chapter 6 - Bankruptcy

I. The Bankruptcy Procedure
II. The Composition

Conclusion

 
 

A Guide for Business in Cameroon
An Advisory Paper Presented by the International Law Firm
SCP Weissberg - Gaetjens - Ziegenfeuter
Copyright 1996-1998 WGZ


CHAPTER V : DISPUTE AND RESOLUTION IN CAMEROON

It is a fact of business life that disputes arise over legal rights, be they contracted or otherwise. Having a basic familiarity with the legal system of the country seems to be of great importance, even though business transactions can be structured to avoid litigation.

I. THE CAMEROONIAN COURT SYSTEM

The Cameroonian Court system is an original mixture of the French and common law systems in regard to its organization, however the litigation procedure is entirely a French one.

A) THE COURTS
The Cameroonian system has one level of trial courts and two levels of appellate courts. With the exception of the single judge system for the Tribunal de 1ère Instance, courts are fitted with a three judge panel which issues a collegial opinion.

1. TRIAL COURTS

There are two kinds of trial courts: the customary courts and the modern courts.

a) The customary courts
Customary courts can have jurisdiction if both the plaintiff and the defendant agrees on it, and unless special jurisdiction has been granted by law to the modern courts. The courts base their decisions in view of customary law.

b) The modern courts
There are three trial courts in the modern system :

The Tribunal de Première Instance
With the exception of labor matters, the Tribunal de Première Instance is a single judge Court. The Tribunal de Première Instance has jurisdiction over minor offenses, civil and commercial actions involving less than 500,000 CFA Francs, summary proceedings and juvenile delinquency matters.
The Tribunal de Grande Instance
The Tribunal de Grande Instance has a general jurisdiction which covers civil, commercial and penal matters. The Tribunal de Grande Instance is divided into several chambers : The civil division, the commercial division, the labor division and the criminal division.
The Military Court
The Military Court is composed of at least one military judge who deals with military offenses and attempts against government security

2. THE COURT OF APPEAL

The Court of Appeal has jurisdiction over appeals issued from the Tribunal de Grande Instance, the Tribunal de Première Instance and the customary courts.

Unlike the common law Court of Appeal, the Court of Appeal reexamines the facts of a dispute and can hold hearings to supplement a case's factual record.

In military matters one of the three judges is a military judge or an army officer.

In labor matters, two of the three judges are non professional judges elected among workers and employers.

In major crimes, when the defendant can be sentenced to death, the three judge panel is completed by a jury of four.

3. THE SUPREME COURT

In civil, penal, commercial and labor matters, the Supreme Court is the final level of appeal and it can only review the application of the law.

The Supreme Court also has jurisdiction over all matters in which the government is concerned. These include especially tax law disputes, government contracts and torts.

As far as administrative matters are concerned, the administrative division of the Supreme Court is the trial level and appeals from its decisions are dealt with by the plenary session.

B) THE LITIGATION PROCEDURE

The following exposé concerns civil and administrative litigation. The procedure of which is very similar to criminal proceedings.

1. CIVIL AND COMMERCIAL PROCEDURE

a) Initiation of a law suit
A law suit is initiated by a writ of summons which contains a complaint made against a defendant (assignation or citation). The writ must be delivered by a process server.

The delivery must transit through a process server, even when the law suit in question is brought before a court in a foreign country.

b) Evidence gathering
In Cameroon, the Court actively orchestrates the gathering of evidence. The parties can ask the court to take the necessary measures for gathering evidence. There are three basic ways of doing so at a court's disposal :

it may order the concerned party or third party to submit an affidavit with regards to some aspects of a law suit
it may order parties to appear in court, in view of their testimony and gathered evidence
it is the court rather than the parties themselves which examines a party's testimony in view of the evidence it has been given. Each party may give any evidence it considers relevant to the court.

2. ADMINISTRATIVE PROCEDURE

All matters to which the government, professional orders or public institutions are a party are dealt with by the administrative division of the Supreme Court. The plaintiff must make a preliminary claim before the relevant ministry.

The law suit is initiated before the administrative division by the registration of a complaint at the clerk of the court's office. The latter then informs the ministry or the relevant administrative authority which may represent the defendant. The administrative division has the same powers of investigation as those of the civil division.

II. ARBITRATION

Under Cameroonian law and in commercial and international matters only, parties can decide either by contract (clause compromissoire) or by a post-dispute agreement that arbitration rather than litigation will be pursued. Arbitration is chosen for the following reasons :

a) it is considered to be more amicable way of resolving a dispute ;

b) it is speedier than litigation ;

c) it allows a private, unpublicized resolution ;

d) it allows a dispute to be resolved through equity rather than through unfamiliar rules of law.

Arbitration awards are made enforceable in Cameroon by the presiding judge of the relevant Court. Appeals against certain awards are possible unless otherwise-provided before the Tribunal de Première Instance or the Cour d'Appel, but never go beyond to the Cour de Cassation.

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