Legal Question in Business Law in Cyprus

Dear Sir,

Thank you for your message.

Criminal liability for a Cyprus Company's directors can arise in various circumstances and in relation to a number of criminal offences.

The situation you have described, subject to more clarifications being provided, can give rise to both criminal and civil liability for the directors, which have acted fraudulently and in conspiracy and it is highly probable that they will greatly liable for the transaction you have detailed. We would certainly need to review the transaction and all documentation in that regard (e.g. sale agreement, etc.). If there is no documentation available we can obtain evidence of the transaction from the Land Registry.

It is not clear to us whether the shareholders of the Company were aware of this transaction at all. In the case where they were not aware of this, they can bring an action against the directors for this fraudulent transaction. Please clarify if the shareholders were aware of this transaction or not, since the proper proceedings can vary depending on this element.

In general, I would like to state that the directors can obviously become liable and would kindly ask that more information is provided so as to advise on this case. We can arrange for a no-obligations advice upon receiving more information and details. Please send us all available information and documentation to [email protected] in order to enable us to advise on the proper legal strategy against these directors.

Best Regards,

ANASTASIOS ANTONIOU LLC

Grigori Afxentiou 3

office 102, Gnaftis Court

4003 Limassol

Cyprus

Tel: +357-25-105038 | Fax: +357-25-104574

[email protected] | www.antoniou.com.cy

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