Cyprus Share Capital Reduction

Summary

Electronic money institutions in Cyprus must obtain Central Bank approval to reduce share capital, as per the Payment Services and Electronic Money Law of 2018. Regular companies follow different regulations under Cyprus Companies Law (Cap. 113). Consult a legal professional for specific guidance.

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I want to know if a company is established in Cyprus and authorised as an electronic money institution required to obtain prior approval from the Central Bank of Cyprus in order to reduce its share capital?
In Cyprus, an electronic money institution must obtain prior approval from the Central Bank of Cyprus to reduce its share capital. This is in accordance with the legal framework governing financial institutions to ensure stability and compliance. If you have more questions, feel free to ask!
i want you to give me the specific statute that states this or what can my answer can be based on? is it because the Central Bank of Cyprus is acting as the competent supervisory authority? if yes what does it have to do with the reduction of the share capital?
In Cyprus, electronic money institutions must adhere to the Payment Services and Electronic Money Law of *, which aligns with EU regulations. The Central Bank of Cyprus acts as the supervisory authority, ensuring financial stability. Reduction of share capital might affect an institution's financial health, thus requiring approval.
For specific statutes, you may need to consult the actual legislative text or seek legal advice. If you have further questions, feel free to ask!
but we are talking about a company. is it the same as an electronic money institution?
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In Cyprus, a company and an electronic money institution (EMI) are different entities. An EMI is specifically authorized to issue electronic money and requires more regulatory oversight. If dealing with a regular company, different rules may apply. You should verify whether the company in question is classified as an EMI or a regular company for accurate compliance requirements.
regular company
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For a regular company in Cyprus, the regulations regarding reduction of share capital may differ from those applicable to electronic money institutions. Generally, regular companies must comply with the Cyprus Companies Law (Cap. *) for such matters. It’s advisable to consult a legal professional for precise guidance tailored to your specific situation.