Company directors in Cyprus
Company directors in Cyprus have the power to decide over the activities and conduct of the company. They are involved in all of the decisions concerning the company and have to fulfill certain duties towards the enterprise and its other members.
Private and public companies in Cyprus must appoint directors and their number depends on the type of company
. While in smaller companies the director can fulfill more tasks, large companies must typically have more individuals in the managing body of the enterprise. A private limited company in Cyprus
must have at least one director who can also act as the company secretary. Public companies in Cyprus must appoint at least two directors.
Our Cypriot company formation experts can help you open a company in Cyprus and fulfill your duties as the company director.
A director’s duties in Cyprus
There are no nationality restrictions for directors in Cyprus, however, individuals are prohibited from becoming company directors if:
- they have a bankruptcy order against them;
- they have been convicted for an offence connected to his or her activities as a company director; in this case an individual can be prohibited from occupying the same position for the next 5 years.
The appointment and removal of company directors in Cyrus must be done according to the laws of the company. Our Cypriot company formation specialists can tell you more about these procedures.
The duties of a company director in Cyprus refer to the following: fiduciary duty, the duty to excise skill and care and statutory duties. A company director must act in god faith and to the best interest of the company. This is also known as the “fiduciary duty”. He or she must also have a certain level of discretion and must avoid conflicts of interest.
The statutory duties for company directors in Cyprus derive from the Companies Law and other supporting legislation. The duties refer to disclosure of interest in contracts, fraudulent trading, the director’s report and annual return and other financial statements that need to be prepared.
A director’s liabilities in Cyprus
The director of a company in Cyprus can be held liable for actions performed against the best interest of the company or for contractual breaches and other types of offences. Common types of liabilities include:
- the breach of common law duties (the fiduciary duties) and the duty of skill and care;
- the breach of statutory duties: which can result in criminal, civil or administrative liability;
- prosecution with respect to tax offences.