Amendments to The Companies Law

Cyprus has recently made a number of amendments to the Companies Law, directed at modernising its provisions and improving Cyprus's competitiveness as a centre for international business. The main changes are summarised below.

Financial Assistance for Acquisition of Own Shares

The rigid prohibition which previously existed against companies providing financial assistance for the acquisition of their own shares has been partially eliminated by the introduction of a "whitewash" mechanism. A private company may now provide direct or indirect financial assistance for the acquisition of its own shares or shares of its holding company as long as it is not a subsidiary of any public company, and the arrangement is approved by a resolution passed at a general meeting at which the holders of 90% of all the issued shares of the company vote in favour. Public companies continue to be prohibited from providing financial assistance for the acquisition of their own shares.