Challenges when pursuing the partial division of a Cyprus company

There are many reasons why shareholders may seek the partial division of their Cyprus company, as the most appropriate means of corporate restructuring. Among them, a partial division secures: a more efficient structure that better supports distinct income streams of the Company’s assets; maintains and evolves the corporate entity and brand built by the original…

read more


Directors’ duties in time of COVID-19

Introduction On 11 March 2020 COVID-19 was declared a pandemic by the World Health Organisation, two days following the first confirmed COVID-19 case in Cyprus. Between then and 13 March 2020 – when the first protective measures were announced by the Cypriot government – little could foretell the avalanche of decisions, measures, countermeasures and statements…

read more


Requisition of an extraordinary general meeting

Shareholders of a Cyprus company have the right to request that the directors convene an extraordinary general meeting (EGM), and the directors are legally obliged to do so within a specified time. The procedure, known as the requisition of an EGM, is governed by Section 126 of the Companies Law Cap 113. Requesting an EGM…

read more


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…

read more


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 The director’s report has effectively been replaced by a broader management report, which aligns with the increased transparency required…

read more


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,…

read more