CYPRUS: Locus standing of shareholder to petition the winding up of his company, on the Just & Equitable Ground
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.
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Mr. Soteris Pittas( spittas@pittaslegal.com ) at SOTERIS PITTAS & CO LLC,
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The content of this article is intended to provide a general guide to the subject matter. Specialist advise should be sought about your specific circumstances.
