26 Feb 2021 |
The Cyprus legal and regulatory framework governing the establishment of Foundations, Associations and Clubs (the “Law”) was substantially revised in 2017, and further amended in 2018, 2019, and 2020.
Following the substantial update and amendments introduced to the legislation by the amendments to the basic legislation with the latest one being the Law on Associations and Foundations and Other Related Issues (Amendment) Law 118 (I) / 2020, the Ministry of Interior has taken action to liquidate and dissolve all clubs, associations and foundations that have failed to comply with their obligations under the Law.
The Latest Developments
The latest amendment updated the procedure by which the competent Registrar shall notify of its intention to commence the dissolution process with respect to specific associations, foundations and clubs.
The authorities have already published in two daily newspapers in the Republic of Cyprus and on the online website of the Ministry of Interior the information regarding the entities that have not complied and will be dissolved. The notifications by the Registrar include the following information in respect to the associations, foundations and clubs:
The Registrar has already published three (3) lists in the forms of Tables with the above information containing the relevant details of the entities that will be dissolved.
First wave of liquidations by the Registrar
The first Table was published on the 27th August 2020 (the “First Table”).
The two-month period of the first notification in relation to the intention of the Registrar to proceed with the dissolution process, commenced on 27th August 2020 and ended on the 27th October 2020.
In accordance with the provisions of the Law, the entities included in the First Table are now under liquidation and will be dissolved.
The list is available on the website of the Ministry of Interior (www.moi.gov.cy) and the entities contained therein, that have not filed the necessary documentation, are now considered under liquidation and will be dissolved with the procedure taking place before the competent court. The said entities have waived their right to exercise their activities and their management bodies are under an obligation to inform any parties they are conducting business with, that they are under liquidation.
Second wave of liquidations by the Registrar
On the 14th December the Registrar announced that they will be proceeding with the liquidation of the entities listed in the First Table that have failed to comply with their statutory obligations. The Registrar further published two (2) new tables with the information on entities that will be subject to liquidation, if they fail to comply with their obligations within the prescribed two (2) month period.
In accordance with the provisions of the Law, following the end of the two-month period of the first notification for the two (2) new tables, the Registrar shall proceed with the publication of the second notification, attached to which are the final tables with the names of the associations, foundations and clubs under dissolution that have not submitted a well-founded and documented annulment request of their inclusion in the liquidation tables.
It should be noted that the Registrar would then automatically remove from its registers the associations, foundations and clubs specified in that notification and ensures the continuation and completion of the dissolution process before a court.
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