BURKINA FASO Law and Practice Contributed by: Bobson Coulibaly, Pierre Yanogo, Marie France Zagre and Diana Woba, SCP Yanogo Bobson
7.2 Requirements for Directors Concerning Management Risk and Internal Controls There are requirements for directors in connec - tion with the management of risk and internal controls in the company. Indeed, pursuant to legal provisions, the board of directors must: • determine the direction of the company’s business and oversees its implementation; • carry out any checks and verifications it deems appropriate; and • provide each director with all the documents and information required to perform his or her duties (Article 435 of AUDSCGIE).
The companies’ registry is in principle publicly available but accessing the information may be more difficult in practice as the registries are not all fully computerised. The consequences of failing to make these dec - larations are that they cannot be invoked against third parties. 7. Audit, Risk and Internal Controls 7.1 Appointment of External Auditors In simplified joint stock companies ( sociétés par actions simplifies ) and in limited liability com - panies ( sociétés à responsabilité limitée ), the appointment of a statutory auditor is only com - pulsory under certain conditions. However, it is compulsory for public limited companies. The statutory auditor is independent of the com - pany, although appointed by the shareholders. He or she certifies the company’s financial state - ments (Article 710 et seq. AUDSCGIE) and is liable for them.
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