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N. Pirilides & Associates LLC

A LEADING LAW FIRM WITH A REPUTATION FOR EXCELLENCE

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PUBLICATIONS

The shareholders of a company, prior to incorporation of the company, may enter into an agreement between themselves relating to the participation in the management of the business, sharing profits and the arrangements for buying each other out.  Alternatively, the company may by contract confer rights on individual shareholders on matters such as the composition of the board, the payment of dividends etc. 
Modern economic societies involve transactions and financing by corporations and consequently, securities are often required by the creditors for such transactions. One form of a security is a pledge over shares in a company, which by its nature is a possessory security interest and thus involves the delivery of possession, actual or constructive. In simple words, a pledge is a method of security in order to assure the repayment of a debt or the performance of an act under a contract.
In Cyprus, protection is afforded against unfair dismissal to all employees, under the Termination of Employment Law 24/67 as amended. The legislation covers all employees, whether in private sector or public sector, including apprentices.
A Company Limited by Guarantee is ‘a company having the liability of its members limited by the memorandum to such amount as the members agree may respectively thereby undertake to contribute to the assets of the company in the event of it being wound up.’ Therefore, the members of the company do not have to pay anything unless the company is wound up and the amount is limited to the amount agreed on the memorandum. 
As a part of its policies aiming to attract foreign investors in Cyprus, the Council of Ministers on 19.3.2014 revised the “Scheme for naturalization of Investors in Cyprus by exception” and established the new financial criteria based on which Cypriot citizenship may be acquired.
The Decision of the Council of Ministers dated 19.03.2014 provides for the acquisitions of Cypriot citizenship by the spouse of the applicant-investor as well as by the financially dependent adult children. It is important to note that neither the spouse nor the children are obliged to meet any financial criteria.
The information provided relates as a basic guideline for British passport holders only.  Non-British passport holders or clients with documentation issued outside of the United Kingdom should contact their own consulate or embassy.
Cyprus and Norway have recently (24.02.2014) entered into a double taxation agreement.
There are two types of tenancy in Cyprus. The “contractual” and the “statutory” tenancy. It is essential to identify the type of the tenancy which exists in a given case in order to ascertain which Court has jurisdiction to decide on the matter.
A public company may be converted to a private company at any given time of its life time.
When property is acquired in Cyprus, the purchaser is liable to pay transfer fees, when the property is registered in his/her name at the Lands Registry Office.
Insolvency procedures are governed by the Cypriot Companies Law Act, Cap 113. 
Cyprus Companies Law provides that every private company must have at least one director and every public company must have at least two directors (s.170). 
What will the reforms bring and how will they affect travellers?
Cyprus registered companies offering administrative services to other Cypriot registered companies need to be authorised by the Cyprus Securities and Exchange Commission (hereinafter called the ‘Commission’).
Registration with VAT Authority   A person/company is obliged to register with VAT Authority when:
Cyprus is an ideal place for the establishment of a medical centre, due to its fine climate (combination of health care and holidays in Cyprus), the known Cypriot hospitality, the professionalism of the workforce and due to its distinctive and unique location.
The Companies Law has been amended by Law 90(Ι)/2013 published in the Official Gazette on 26 July 2013.  The amendment effected is the following: Keeping books of account