LIQUIDATION



LIQUIDATION

Liquidation of Cyprus Companies

According to the Companies Law CAP 113 (the “Law”) a company’s liquidation may be arranged in the following ways: (i) by the compulsory Court order;
(ii) voluntary liquidation performed by the company’s members or creditors or
(iii) a liquidation performed under the supervision of the Court.

Liquidation by the Court

Liquidation of a company by the Court may take place under the following circumstances:

(i) where the company has decided by special resolution that it will be liquidated by the Court;

(ii) where the delivery to the registrar of companies of the institutional report or the convening of an institutional assembly is omitted;

(iii) where the company does not start operations within one year of its incorporation date or suspends operations for an entire year;

(iv) where the number of members in the public company is reduced to less than seven. In such a case the Court grants the company a period sufficient to remove the reason for dissolution, and proceeds with dissolution where the company is unable to increase the number of its members or is unable to increase it within the period granted by the Court;

(v) where the company is unable to pay its debts;

(vi) wherein the opinion of the Court it is lawful and in conformity with the law of leniency to dissolve the company; (vii) where a European company (SE) fails to remedy the situation as provided under Article 64 of Regulation (EC) No. Council Regulation (EC) No 2157/2001 of 8 October 2001 on the Statute for a SE.

Voluntary liquidation

Voluntary liquidation of a company may take a place under the following circumstances:
(i) when the period for the duration and existence of the company set in the articles of association has expired, or the dissolution event set in the articles of association of the company has occurred;
(ii) where the voluntary liquidation has been voted by a special resolution of the company;
(iii) (iii) where the company by an extraordinary resolution votes that it cannot continue its operations and that it is advisable to be liquidated.

It should be noted that voluntary liquidation, includes both: the voluntary liquidation by members and the voluntary liquidation by creditors (each subject to the respective provisions of Law).

Our Services
1. Licensed Insolvency Practitioners, to act as Liquidators of your company
2. Maintaining and arranging the process of the liquidation including the drafting of necessary documents.
3. Developing and advising on the step plan to place a Company into liquidation.
4. Act as a legal consultant to a liquidator
5. Submit/file a relevant application(s) to Court for processing the liquidation and necessary to its actions (including protection of company assets where applicable).

For more information, please, contact us directly.

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