In general, a floating charge is a type of a security which “floats” all over the assets of the borrower-company, until an event of default occurs or until the company goes into insolvent liquidation, at which time the floating charge crystallises and attaches to all the then existing assets. Until such an event takes place, the company may carry on its business in the ordinary course and subject to the terms of the debenture may sell, mortgage or otherwise deal with its assets and pay dividends out of profits as though the floating charge had not been created.
Injunctions in Cyprus
As in plentiful developed places of the world, so in Cyprus, the need of issuing various types of court injunctions as a form of protective measures has been long introduced and broadly used. Over the last decade however, 21st century’s transactions and the rapid development in the way people do business as well as the increased number of Cyprus holding companies in multinational complex company structures, mainly due to reasons of taxation, has led to an increase in the granting of injunctions by the Courts of Cyprus, in situations whereby (i) either the Respondents, against whom the injunction is addressed, are subject to the in personam jurisdiction of the Cyprus Courts or (ii) the assets of the Respondents requested to be frozen, are in Cyprus, hence within the jurisdiction of the Cyprus Courts.
This article examines whether a document and/or contract drafted for a transaction to be carried out is dutiable or not, based on the law of the Republic of Cyprus. The general rule will be explained which is subject to exceptions and can be interpreted differently depending on the facts of each case and the terms of each document and/or contract.
Our firm in collaboration with K.J Conroy & Co solicitors a Birmingham – based law firm and other law firms based in Cyprus is acting on behalf of former EOKA veterans in a claim against the British Government for human rights abuses suffered during the 1955-1959 struggle against colonial rule.
Cyprus trust law is essentially based on the English system. Trusts are mainly regulated by the Trustee Law, Chapter 193, enacted in 1955 and based on the English 1925 Trustees Act. This is supplemented by the English doctrine of equity and English case law prior to 1960.
In 1992, Cyprus enacted the International Trusts Law. This was done to update and modernise the law and establish Cyprus as an offshore and financial centre and a serious trusts jurisdiction.
The Alternative Investment Funds Law of 2014 (the “AIF Law”) was enacted by the Cyprus House of Representatives on 10/07/2014 and was published in the Official Gazette of the Republic of Cyprus (on 25/07/2014). The AIF Law repeals the International Collective Investment Schemes Law 47(I) 1999 (the “ICIS Law”) the former legislative framework for investment funds, which has been in place since 1999.
A trade mark is one of the most valuable assets of a business since it is the way that customers identify and distinguish a product/service and that is why it is important to register such trademarks. A trade mark may be registered nationally but also in Europe and/or internationally.
The enforcement of a foreign judgment is the recognition and enforcement in one jurisdiction of a judgment issued in another jurisdiction. A judgment given by one country’s court has no force by itself in another country.
Since Cyprus’ accession to the EU, VAT is charged on all new property provided the initial application for a building permit was made after the 1/05/2004. All buildings that received the building permit prior to this date will have no VAT charge. Also all second-hand property including houses, apartments etc, have no VAT charge. Building plots/land are also exempt from VAT.
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.
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.