Depreciation of the national currency and protection of companies’ equity in the Democratic Republic of Congo: Critical analysis of legal, regulatory, and statutory provisions

Dépréciation de la monnaie nationale et protection des fonds propres des sociétés en République Démocratique du Congo: Analyse critique des dispositions légales, réglementaires et statutaires

Bob David Nzoimbengene Luyindula ()
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Bob David Nzoimbengene Luyindula: UPC - Université protestante au Congo, HEC-Kinshasa - Haute Ecole de Commerce de Kinshasa, HEC Liège

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Abstract: This work aims to analyze the legislative, regulatory and statutory measures taken respectively by the Congolese competent authorities (Presidency of the Republic and Central Bank) and the companies' shareholders under Congolese law, to avoid the erosion of the share capital, or even the equity capital of companies, following the recurrent depreciation of the national currency against the functionnal currency, in particular the US dollar, and consequently protect the share capital paid up by the shareholders or the equity that accrues to them. To carry out this research, we used the hypothetico-deductive approach, associated with the descriptive method, supported by the documentary and interview research techniques. As main conclusion, the study shows that the legal measures taken by the Presidency of the Democratic Republic of Congo through the Decree n° 04/049 of 20 May 2004, instituting the Provision for the Reconstitution of the Share Capital (PRCS), with a view to preserve the Equity of Credit Instituti

Keywords: Share Capital; Regulatory provision for share capital reconstitution; Equity; Depreciation of national Currency (CDF); tax advantage; Exchange rate; Bank; Microfinance Institution; Democratic Republic of Congo (DRC).; Capital social; Provision pour Reconstitution du Capital Social (PRCS); fonds propres; dépréciation de la monnaie nationale (CDF); avantage fiscal; taux de change; Banque; Institution de Microfinance; République Démocratique du Congo (RDC); African Scientific Journal; République Démocratique du Congo (RDC).; Microfinance (search for similar items in EconPapers)
Date: 2024-11-15
Note: View the original document on HAL open archive server: https://hal.science/hal-04786749v1
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Published in African Scientific Journal, 2024, 03 (26), pp.1186-1219. ⟨10.5281/zenodo.14136620⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04786749

DOI: 10.5281/zenodo.14136620

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