| Corporative legislation |
- Ltd companies incorporated according to Cyprus Companies Law 1951.
- Cyprus Companies Law is identical to the 1948 Companies Act of the UK.
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| A company constitution |
- Every company has a memorandum of association, which determines its name, where its registered office may be situated and what it may do (its objects).
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| Limited liability |
- A company may have limited liability for its members. The effect of this is that, if the company is unable to pay its debts and is put into liquidation, the members will not be required to contribute more than they have actually paid or agreed to pay towards settling its debts.
- A private company may be limited by shares.
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| Directors powers and responsibilities |
- The directors are responsible for the management of the company.
- Since the directors can act as and for the company, they must ensure that the company does everything that it is obliged to do by law and that the decisions they make are in the best interests of the company.
- Individual directors do not have the authority to commit the company unless authorised by the Board.
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