Structuring an exit from investment

Shareholders’ excitement over a new joint venture can be overshadowed when issues concerning the available options for exit from the investment arise for discussion. It is prudent for shareholders to address the full spectrum of their investment as early as possible, including the start-up stage and the operation of and exit from the investment. Company…

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New financial reporting provisions introduced

Introduction On September 23 2016 Law 97(I)/2016 – the third amendment to the Companies Law (Cap 113) – took effect. Law 97(I)/2016 substantially amends the information which must be included in a company’s financial statement reports. The director’s report has effectively been replaced by a broader management report, which aligns with the increased transparency required…

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Derivative actions – protection of minority shareholder rights revisited

Introduction There are many reasons why Cyprus courts refrain from interfering in the internal affairs of limited liability companies. At the core of the courts’ approach lies the commercial reality that these matters are better understood and applied by a company’s governing bodies (ie, its board of directors and shareholders) at the general meeting. However,…

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Directors accountable for taxes due on company assets

Cyprus company law was updated in 2015, but still provides no codification of directors’ duties. However, a recent bill submitted to Parliament for review makes directors accountable to the Tax Department for taxes due on company assets. Parliamentary bill Under the bill, company directors or other persons exercising management and control over a company will be required to…

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Expected changes to taxation of IP: Reasoning and Further Steps

Intangible assets are steadily becoming the most valuable assets of an organisation, often accounting for over 60% of a company’s value. The reason is simple; strong brands influence customers’ decision-making process, and ensure that premium prices can be charged.  Intangible assets including trademarks, brands, patents, copyright etc. (IP) are constantly swotted and refreshed to respond…

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Derivative Actions in Cyprus – Protection of Minority’s Rights Revisited

There are many reasons for which Cyprus courts refrain from interfering in the internal affairs of a limited liability company. At the core of the courts’ approach lies commercial reality that is deemed to be better understood and applied by the company’s governing bodies; its board of directors and its shareholders at General Meeting. However…

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