Simplifying the Process: A Guide to Obtaining a Court Order for Reduction of Share Capital

To obtain a court order for the reduction of share capital of a Cyprus company, the following steps should be taken: 

Prepare a special resolution to be passed by the shareholders of the company, approving the reduction of share capital. 

File an application before the appropriate District Court, along with the special resolution and any other required documents, such as a statement of solvency and consent of all creditors (if any). 

Attend a hearing before the court, at which the court will consider the application and any objections that may have been raised by creditors or other parties. 

If the court is satisfied that the reduction of share capital is fair and reasonable, and that the company will be able to pay its debts as they become due, it will make an order approving the reduction. 

It’s important to note that the process and requirements for obtaining a court order for the reduction of share capital may vary depending on the specific circumstances of the case. 

Loizides & Associates LLC’s corporate team has successfully represented its clients in numerous legal procedures before appropriate District Courts and obtained court orders for the reduction of share capital. 

Particularly, our team has recently obtained Court orders approving the reduction of the share premium accounts of its clients on the basis that the amounts of the share premium accounts exceed the companies’ needs and are no longer needed and serve no purpose. 

Our corporate team successfully represented its clients and recently obtained Court orders approving the reduction of the share premium accounts by the following amounts: 

(A) €117,833,028.35; 

(B) €29,801,592.94; 

(C) 25,387,740.02 

(D) €9,365,269.34; 

(E) €1,334,340