Under Cyprus law a company can be voluntary liquidated by its shareholders.
It is a precondition for a voluntary liquidation of a company by its shareholders that its directors must first issue a statutory declaration of solvency. This statutory declaration declares that the company is able to pay its debts in full within 12 months from the commencement of the winding up procedure. The declaration of solvency is accompanied by a statement of assets and liabilities up to the date of the declaration.
In addition, a general meeting of the company must be convened, in order for a special resolution to be passed by the company’s members agreeing that the company is to be voluntarily wound up and appointing a liquidator.
Following his appointment, the liquidator verifies and collects the company’s assets, which are then realized in order to pay creditors. Any surplus assets are then returned to the company`s shareholders.
Once the liquidator winds up the company’s affairs, a final general meeting is convened, during which the liquidator submits the final liquidation accounts. These accounts give explanations to the company’s shareholders with regarding the actions taken by him in order to liquidate the company.
The accounts are then submitted to the Registrar of Companies and within three months from the filing of the returns the company is deemed to be dissolved.
It should also be pointed that a Cyprus company can also be voluntary liquidated by its creditors or under court supervision.
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 and is subject to the disclaimer
Our firm routinely answers queries from individuals and corporate clients on company insolvency and restructuring. If you have a query or wish to receive further information, please contact us using [email protected]