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 (Section 64 of the Companies Law, Cap 113).
In order for a Cyprus company to reduce its share capital:
(a) a special resolution must be passed in general meeting authorizing the reduction of the share capital. A special resolution is a resolution of the company’s shareholders which requires at least 75% of the votes cast by shareholders in favour of it in order to pass.
(b) file an application to the relevant District Court of Cyprus to receive the approval of the reduction of share capital. If the consent of all the companies creditors for the reduction is obtained, the court may dispense with the requirement for publication of the application in the official gazette.
(c) file the issued court order together with the special resolution with the Cyprus Registrar of Companies. According to section 67(2) of the Companies Law, Cap 113. The reduction of the share capital will have no effect unless and until the necessary filing is made to the Registrar.
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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.
If you have a query or wish to receive further information, please contact us using [email protected]
