Types of companies with shareholders in Cyprus
Public and limited liability companies
are the main types of legal entities that are limited by shares and guarantee. Shareholders of Cypriot companies
will hold shares and have corresponding rights in one of these types of companies.
generally issued by a company in Cyprus
are ordinary and the rights that come with them are described in that company’s Articles of Association. Cypriot shareholders
will usually be entitled to receive dividends, attend general meetings, vote, etc. Preference shares
and redeemable preference shares
are also commonly issued by Cypriot companies.
General shareholder’s rights in Cyprus - detailed by our Cypriot company formation agents
The rights of the shareholders
depend on the types of shares
they acquire in the company. For example, preference shares
can have a higher rank than other shares in terms or dividend rights but have limited voting rights. Apart from receiving dividends, notice and the right to attend and vote in general shareholder’s meeting
, another key right is the one that allows shareholders to receive a part of the company’s capital or assets in case of liquidation
The company’s articles of association describe the rights of the shareholders and also those of the minority shareholders.
The general meeting of shareholders in Cyprus
According to the company law, Cypriot companies
must hold an annual shareholder’s meeting
. This can also be held more than once a year. Also, the first shareholder’s meeting
must take place within 18 months after the company has been incorporated. The maximum amount of time between two meetings is 15 months.
The main issues discussed in a shareholder’s meeting include the declaration of dividends, financial statements and balance sheets, the reports issued by company directors and by auditors, the appointment of directors and/or auditors. During this meeting the shareholders can also decide to change the company’s name and bring amendments to the company’s memorandum and Articles of Association.