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.
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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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