Dissolving a Cyprus company can be a complicated or a straightforward process however it is a procedure that requires careful planning and execution. In Cyprus, this process is governed by the Companies Law, Cap 113, and involves various legal, financial, and administrative steps.

On Wednesday 19 June 2024, the Irish Corporate Enforcement Authority ("CEA") published its first-ever annual report. The Annual Report covers the 18-month period from July 2022 (when it replaced and assumed the responsibilities of the Office of the Director of Corporate Enforcement) to 31 December 2023.

Supervision of corporate insolvency

The CEA has a statutory role in supervising the liquidation of insolvent companies and taking enforcement actions in respect of struck off insolvent companies.

The Privy Council has recently upheld a BVI judgment refusing stay of a winding up petition in favour of arbitration. The recent Sian Participation Corp (In Liquidation) v Halimeda International Ltd¹ Privy Council decision provides much needed clarity on the exercise of the Court’s discretion to wind up a company where the debt is not disputed on genuine and substantial grounds and is subject to an arbitration clause.

In Hungary, many creditors choose liquidation procedure instead of classic court procedures (i.e. order for payment and civil litigation) in order to recover their claims. A recent decision has once again demonstrated that liquidation proceedings can in many cases be a simpler solution for creditors to recover their claims. In this article following an introduction to the relevant rules of the liquidation procedure we will examine this decision.

1. Liquidation procedure in nutshell

Introduction

Liquidations in the British Virgin Islands (“BVI”) do not have a rescue function and mark the end of a company’s lifecycle. A liquidation in the BVI can be either:

On 29 April 2024, the Italian Supreme Court issued its judgment in case No. 11357, ruling on the right of usufruct on the quotas of a limited liability company in voluntary liquidation.

The Judicial Committee of the Privy Council has decisively redrawn the boundaries between arbitration agreements and insolvency proceedings in the case of Sian Participation Corp (In Liquidation) v Halimeda International Ltd.[1]

Overview

The scope and extent of a director's duty is of particular interest to officeholders of companies and their D&O insurers.

In December 2012, Halimeda International Ltd lent $140m to Sian Participation Corp. The loan agreement provided that any claim, dispute or difference of whatever nature arising under, out of or in connection with the loan should be referred to arbitration. In September 2020, in proceedings akin to a winding up petition, Halimeda applied to have liquidators appointed over Sian under the BVI Insolvency Act 2003. Wallbank J held that Sian had failed to show that the debt was disputed on genuine and substantial grounds and ordered that the company be put into liquidation.

On 8 May 2024, the General Court of the EU annulled the Commission decision of 26 July 2021 approving restructuring aid to German airline Condor following an annulment action lodged by Ryanair. The Commission should have opened a formal procedure because of doubts about the compatibility of the aid. The General Court rejected Ryanair’s argument relating to the impact of the aid on its competitive position.

Background