Prohibition of Financial Assistance

This practice memo describes the legal and practical consideration with regards to the prohibition of Cyprus companies to provide financial assistance for the purpose of acquisition of its own shares or shares in its holding company. It includes a description of the rationale, the general rule under the law, the exceptions to the rule, the whitewash mechanism for private companies, public company considerations and other relevant matters. It goes further to include a step plan on the whitewash process for financial assistance by a Cyprus private company.

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