Cyprus: Corporate and Company Law

Cyprus companies are widely used as holding, investment and commercial vehicles by investors from Europe, the Middle East, Africa and Asia. Although these structures are often stable, disputes between shareholders arise frequently — particularly where foreign investors rely on local directors, nominees or partners to manage Cyprus-based entities.

The recent judgment of the New Supreme Court of Cyprus, dated 10 September 2025, in Civil Appeal No. 74/2017 highlights a classic yet often misunderstood issue in company and contract law: when a contract entered into before the incorporation of a company binds the company itself, and when it binds personally the individual who signed it.

Under section 227 of the Companies Law (Cap. 113), the Court may, after the filing of a winding-up petition and before the issuance of a winding-up order...