New strike-off provisions

Posted on 03 Feb 2019, by Olga Pshenichnaya
NEW STRIKE-OFF PROVISIONS - AMENDED ARTICLE 327 OF COMPANIES LAW, CAP. 113 UNDER AMENDMENT LAW OF 2018 (Ν. 149(I)/2018)
Amendment ofpoint (a) of subsection (2A) of Section327 and adding of Section (3A)- effective as of 18 December 2018

The Registrar of Companies has the power to strike-off the company upon application of director/s, submitted to the registrar of companies in the prescribed form and provided that the company has fulfilled its obligations under the Law. The Company can withdraw the application submitted under such conditions before the expiry of threemonth period, submitting to the registrar of companies notice in the prescribed form.

Amendment of subsection (5) of Section 327- effective as of 18 December 2018

Member/s or creditor/s of the company on an equal basis with director/s may apply to the Registrar of Companies for objection of striking-off of the company within 3 months from the publication in the Government Gazette.

Amendment of subsection (7) of Section 327- effective as of 18 December 2018

The Court may by the order

  • give instructions and orders as it deems fair for restoration of the company and all other persons to the same positions as far as possible, if the company's name had not been deleted;
  • give instructions that the documents in relation of the company to be submitted to the registrar of companies for the updating of the register maintained by the Registrar;
  • give instructions that all fees due by the company are paid; and
  • give instructions that the company pays all the Registrar of Companies’ expenses for the restoration of the company.
Adding of Section 327A - effective as of 18 December 2018

The Registrar of Companies has the right to restore struck-off companies without Court Order.

In accordance with subsection (1) of the added Section 327A notwithstanding the provisions of subsection (7) of Section 327, the Registrar of Companies may upon request in the prescribed form made by any director or member of the company the name of which has been deleted from the register pursuant to points (a) and (c) of subsection (3) and (6) of Section 327, restore the name of the company in the register provided that:

  • such application will be made within 24 months from the date of the deletion of name of the company in accordance with Section 327; and
  • the company was carrying business or was active at the time of strike-off; and
  • with the relevant application must be submitted all required forms, reports, financial statements and other documents in order to bring the file of the company up to date; and
  • the company will settle all fees, levies, penalties due to the Registrar of Companies; and
  •  the fee of restoration will be paid upon submission of the relevant application; and
  •  the registrar has a reasonable cause to believe that the deletion of the company's name has caused a disadvantage to the applicant.