A private company may proceed to a joint venture, a merger or an acquisition with any other company or companies when the restructuring plan provides for the transfer of the business or property of the transferring company to another company. In accordance with the provisions of the Companies Law (Cap. 113), the following procedure must be followed prior to the two or more companies merge:
As long as there is a relevant provision in the Articles of Association of the company that allows for a merger, the directors of the companies must prepare the restructuring plan according to the provisions of the Companies Law. It follows that a petition to Court must be submitted to request the convening of a general meeting of the shareholders of the company to approve the restructuring plan by way of a resolution. Once the restructuring plan is approved by the shareholders as well as by the creditors of the company, a second petition must be submitted to the Court to request the Court’s approval of the restructuring plan. The procedure is finalised once the Court judgement is submitted at the Registrar of Companies in Cyprus, which will in turn discontinue the companies absorbed through the merger.