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ARTICLE · 24 MAY 2021

Shareholder Disputes In Cyprus

AGPLAW | A.G. Paphitis & Co. LLC
AGPLAW | A.G. Paphitis & Co. LLC
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Minority shareholders, due to the nature of their role in the business, have little to no effect in the decision-making process of the company.

CyprusCorporate/Commercial Law

Minority shareholders, due to the nature of their role in the business, have little to no effect in the decision-making process of the company.

What are the main reasons for the rise of shareholder disagreements and how can they be resolved in advance?

Shareholders of significant organisations (but not excluding smaller ones) will usually be confronted with difficult situations when it comes to the development and direction of the corporation, the visions of the board in different management and control matters, profit distributions, alleged breach of duties and even interests of different parties within the company. Such situations will usually lead shareholders to the unfortunate position of entering into shareholder disputes that may sometimes place at risk the interests of the company itself. Nevertheless, conflicts are considered to be part of every corporate relationship. It is important to stress the need to be able to resolve such disputes in advance.

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