Shareholders in CyprusUpdated on Tuesday 22nd September 2015
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Shareholders in Cypriot companies
According to Chapter 113 in the Cyprus Company Law, a company may have at least one shareholder. The legislation also allows both natural persons and legal entities to be shareholders in a Cypriot company. The shareholder of a Cypriot company must provide the following information when registering a company with Trade Register:
- - the full name,
- - the address,
- - the nationality,
- - the occupation,
- - the number of shares held in the company,
- - a copy after the passport,
- - a bank reference letter,
- - a recent utility bill as proof of residency.
If the shareholder wishes to remain anonymous, a nominee shareholder may be appointed.
What are the rights and responsibilities of Cypriot shareholders?
Shareholders of Cypriot companies are usually the owners of the company and will decide and control the composition of the board of directors. However, they will not control the company directly, but will delegate through the company’s Articles of Association who will manage the Cypriot company.
According to the Code of Corporate Governance, all shareholders no matter their class and participation are entitled to equal treatment. The Code of Cypriot Corporate Governance differentiates majority, minority and foreign shareholders.
Cypriot shareholders have certain rights, but also obligations which are set out in the company’s Memorandum and Articles of Association. The main right of shareholders is the voting right which allows them to participate and vote at general meetings. However, they may not force the company’s directors to take certain actions. The decisions made by shareholders of Cypriot companies are done by passing resolutions. The Commercial Law establishes the following types of resolutions:
- - ordinary resolutions,
- - extraordinary resolutions,
- - special resolutions.
For details about each type of resolution to be passed by shareholders you may ask our Cypriot attorneys.
Nominee shareholders in Cyprus
The nominee shareholder is a trustee in charge of holding the shares of the company in the name of a beneficiary which is the real owner of the shares. The nominee shareholders of companies will be registered with the Cypriot Trade Register. In order to appoint a nominee shareholder, a declaration of trust will be signed by the beneficiary and the trustee. Nominee shareholders, however, will not be able access the company’s accounts, make any payments or handle the company’s assets.
For nominee shareholder services you may also contact our lawyers in Cyprus.