AFRICA ROUNDTABLE – 6-7 OCTOBER 2016 THE NEW OHADA UNIFORM ACT ORGANIZING COLLECTIVE PROCEEDINGS FOR THE WIPING OF DEBTS - UACP Adrien RANGIRA Partner| Francophone Africa

Uniform Act organizing Collective Proceedings for Wiping off debts (UACP) General introduction What is OHADA? French acronym for ‘the Organisation for the Harmonisation of Business Law in Africa’ 17 countries The new uniform act Applies to all OHADA members Replaces the previous act enacted on 10 April 1998 Modernises and simplifies the existing law Key innovations:

Uniform Act organizing Collective Proceedings for Wiping off debts (UACP) Adoption and publication of the UACP WHEN? Adopted by the Council of Ministers of OHADA on 10 September 2015 Published in the OHADA official gazette on 25 September 2015 Entered into force on 24 December 2015

Uniform Act organizing Collective Proceedings for Wiping off debts (UACP) Justification of the reform Shortcomings of the old text Lack of a modern preventive conciliation procedure Limited scope of implementation Bankruptcy proceedings lasting too long Cumbersome procedures for micro-entrepreneurs Lack of regulations regarding judicial representatives Lack of adequate regime for international bankruptcies initiated out of the OHADA space Lack of clarity in the ranking of creditors

Uniform Act organizing Collective Proceedings for Wiping off debts (UACP) Justification of the reform Recommandations and innovations Widening of scope of the U.A. and introduction of simplified procedures Definition of key concepts to facilitate the implementation and interpretation of the revised U.A Establishment of a new preventive procedure of conciliation Establishment of a "new money" privilege Shortening of deadlines and duration of collective proceedings Establishment of a legal framework to regulate the activities of legal representatives Establishment of a new cross-border insolvency regime

Uniform Act organizing Collective Proceedings for Wiping off debts (UACP) Objective of the New Uniform Act Meet the needs of economic operators for the development of the private sector at national and regional levels Develop the OHADA law regarding the prevention and treatment of company difficulties More rapid achievement of the objectives pursued by OHADA Simplify and secure proceedings Adopt solutions that are in line with the socio-economic context of OHADA Member Countries Form a coherent and harmonized legal framework Incorporate existing international "best practices" Strengthen and improve the status and responsibilities of legal representatives

Uniform Act organizing Collective Proceedings for Wiping off debts (UACP) Key Innovations of the New Uniform Act Broader scope of implementation ratione personae takes into account business starters applies to farmers, craftsmen, business starters, freelance professions, whether regulated or not Jurisdiction provides for a conciliation procedure Legal representatives provides for the rules to ensure the regulation and supervision of legal representatives Preventive proceedings conciliation preventive settlement

Uniform Act organizing Collective Proceedings for Wiping off debts (UACP) Key Innovations of the New Uniform Act Preventive settlement Regarding the conditions for commencing a preventive settlement procedure Regarding creditors A totally new simplified preventive settlement procedure is provided Judicial administration and liquidation of assets Articles 39 and 40 of the updated U.A. International collective proceedings Articles 247 to 289 of the updated U.A. provisions devoted to the recognition and effects of foreign insolvency proceedings into OHADA Member States improvements on the recognition and effects of insolvency proceedings initiated within Member States

Uniform Act organizing Collective Proceedings for Wiping off debts (UACP) Expected results for the New Uniform Act promote the rescue of companies facing difficulties that are still viable lead to more substantial dividends to creditors regulation of the role of bankruptcy administrator so as to enhance competence and moralize his intervention limitate of the bankruptcy administrators remuneration

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