CYPRUS: Locus standing of shareholder to petition the winding up of his company, on the Just & Equit

Cypriot Courts have used English case law as guidance, on deciding on the above issue, including the following leading cases:

- RE: RICA GOLD WASHING CO LTD (1879) 11 CH. D. 36, in which it has been inter alia held that shareholder/petitioner shall plead and prove in its winding up petition that he/she/it has a tangible interest, as shareholder in the winding up of the company. This is usually demonstrated by showing there will be more than a negligible surplus for shareholders, after payment of all company’s creditors (which facts should be expressly pleaded in the winding up petition and proved at the hearing (see RE: MARTIN COULTER ENTERPRISES LTD (1988) BCLC 12)

- RE: CHESTERFIELD CATERING CO LTD (1977) CH 373, in which it has been inter alia held, that the existence of locus standing of the shareholder/petitioner, may also be capable of being demonstrated by showing that the shareholder/petitioner will achieve some advantage, or avoid or minimize some disadvantage, which will accrue to him, by virtue of his membership of the company.

For further information on this topic please contact

Mr. Soteris Pittas(  ) at SOTERIS PITTAS & CO LLC,

by telephone (+357 25 028460) or by fax (+357 25 028461)