Constantinos Clerides completed another three-day / nine hour training course as a Legal Trainer and instructor for legal professionals in their Continuing Professional Training (9 CPDs) on behalf of the European Legal Training Center.
Throughout the training he explained methods of pre-empting and preventing shareholders disputes as well as resolving them both in and out of court. Constantinos comments "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 two to four years. Such long periods can only cause harm to the specific company in dispute and in essence, to all shareholders involved."
The course titled Managing and Resolving Shareholder Disputes elaborates on the below:
Court Dispute Resolution
1. Liquidation/Winding Up Application on the basis of Fair and Equitable
2. Application for alternative remedy for liquidation in cases of oppression (forced purchasing of shares by other shareholders)
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
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
7. Buyout provisions