Cyprus finance minister announces the preparation of an updated Companies' Law

The finance ministry on Tuesday issued a tender with an estimated value of €2 million for the creation of updated legislation and rules covering the outdated companies law in an effort to boost business and economic competitiveness.

The council of ministers has given its approval to the announcement, which is contained in the Recovery and Resilience Plan. The deadline for submitting tenders is May 26.

According to the ministry of finance, the goal of the reform project is to increase business and economic competitiveness in line with global best practices in the area of company law.

The announcement claims that the initiative is the result of cooperation between a number of public and private organizations, including the bar association, the registrar of companies and official receiver, the legal service, the commissioner of legislation, the association of certified public accountants, and the ministry of energy, trade, and industry.

The government has prioritized modernizing company law, according to the ministry of finance, because the current legal system is based on the 1948 British Company Law.

According to the announcement, "[this] outdated legal framework must be updated and adapted to the modern needs of the business environment, in response to domestic and international legal requirements."

By fLEXI tEAM