"Just completed a 9 hour training course as a Legal Trainer and instructor of 28 legal professionals in their Continuing Professional Training (9 CPDs) on behalf of European Legal Training Center. Special Thanks to all 28 attendees for dedicating 9 hours out of their busy schedules to hear what I had to say on the matter of Managing and Resolving Shareholder Disputes in Cyprus, a subject to which I have had the good fortune to be involved in as a litigation practitioner.
In a short overview I explained methods of pre-empting and preventing shareholders disputes as well as resolving them both in and out of court. It is always in the benefit of all those involved, especially minority shareholders to resolve disputes regarding companies and shareholding as swiftly as possible without the need to resort to litigation since in the end, no one benefits from protracted and costly procedures. Average court action in Cyprus takes 6 years, whilst average Application for winding up or Application for alternative remedies to prevent oppression of minorities will need three to four years. Such long periods can only cause harm to the specific company in dispute and in essence, to all shareholders involved.
In the past three weeks I have elaborated and expanded on the below subjects:
A. Out-of-Court Ways of Preventing or Resolving Shareholder Disputes:
1. Shareholders Agreement
2. Deadlock Resolution Provisions
3. Dispute Resolution Clauses
4. Proposal to resolve a dispute to be voted on at an extraordinary general meeting
5. Negotiation
6. Mediation
7. Buyout provisions
B. Court Dispute Resolution:
1. Liquidation Application – Fair and Equitable
2. Application for alternative remedy for liquidation in cases of oppression
3. Derivative Action
4. Application for Correction of the Register of Shareholders
5. Application for Appointment of Inspector
6. Claims by shareholders directly against directors / shareholders"
For more information regarding shareholder and commercial disputes contact Phoebus, Christos Clerides & Associates LLC at info@clerideslegal.com or con.clerides@clerideslegal.com.
