CYPRUS: When a Cypriot Company shall be deemed “insolvent”, thus giving jurisdiction to Cypriot Court to issue a winding order
Section 211 (e) of Companies Law CAP. 113 (“CAP. 113”), provides inter alia for the winding up of a Cypriot Company when it is “insolvent”.
Section 212 of CAP. 113, provides the following instances, when a Cypriot Company shall be deemed insolvent, thus giving jurisdiction to Court to issue a winding up order against it and appoint a liquidator over the same:
(a) When a creditor for a liquidated and undisputed debt of Euro 5.000 or more serves at the registered office of the debtor company, of a statutory demand for payment of such debt, and the debtor company fails or neglects to settle, or secure such debt, within 21 days from date of service of such statutory demand.
(b) When a writ of movables is issued against the debtor company and same returns unexecuted due to lack of assets for its satisfaction.
(c) When the company fails to pay immediately outstanding and payable debts, and the Court in deciding such insolvency, may take into consideration also the existence of any contingent, or prospective debts or obligations of the company (“cash flow insolvency”).
(d) When the total value of the all the existing assets of the company is lower, than its total debts and obligations, including any contingent and prospective debts and obligations ( “Balance sheet Insolvency”).
For further information on this topic please contact
Mr. Soteris Pittas( email@example.com ) at SOTERIS PITTAS & CO LLC,
by telephone (+357 25 028460) or by fax (+357 25 028461)
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