Section 64 of the Companies Law (Cap 113) provides that a Cyprus company limited by shares or guarantee and having a share capital, may, if so authorized by its articles of association, reduce its share capital.
The reduction of share capital may, in certain circumstances, be used to:
(a) return capital to the shareholders that would otherwise not be distributable;
(b) convert non-distributable reserves to distributable reserves and reduce accumulated losses;
(c) lead to the return of any surplus capital to shareholders;
(d) facilitate the redemption or buyback of shares (in case of public company) where the company has insufficient distributable reserves.
Our firm is able to provide prompt, practical and authoritative legal advice on Cyprus company law issues.
Theodorou Law is a Cyprus law firm with Cyprus lawyers and other legal experts on legal matters involving Cyprus law, EU law and international law. The above should be used as a source of general information only. It is not intended to give a definitive statement of the law.
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