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SHARE PLEDGE AGREEMENTS - CYPRUS CONTRACT LAW

By: CONSTANTINOS CLERIDES Apr. 19, 2022

Perfection of a Pledge Agreement pursuant to Article 138(1) and 138(2) of the Cyprus Contract Law (Cap. 149):

 

The agreement must be:

1.    In writing

2.    Signed by the Pledgor

3.    In the presence of two competent witnesses who must fully state their name

 

Thereafter:

4.    A notice of the pledge must be delivered to the company by the Pledgee together with a certified copy of the share pledge agreement,

5.    A Memorandum of such pledge is entered in the register of members of the company against the shares for which a notice of pledge has been delivered;

6.    A certificate issued by the secretary of the company that a memorandum of pledge has been entered in the register of members of the company against the pledged shares, delivered to the pledgee.

The above are the requirements to create a legal, valid and enforceable pledge under Cyprus Law.

 

 For more details or advice regarding injunctions or court orders contact Phoebus, Christos Clerides & Associates LLC at info@clerideslegal.com or con.clerides@clerideslegal.com.