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Subject:Minority Shareholders Protection

L.G. Zambartas LLC contributes to widespread study on Minority Shareholder Protection for the European Commission DG Justice and Consumers

A European Commission study on Minority Shareholder Protection was released in January 2018. In performing the task, following contribution from a  Europe-wide network of experts including legal experts from all EU Member States. The portion of the study which focuses on Cyprus was researched and prepared exclusively by L.G. Zambartas LLC. The study aimed to assist the European Commission DG Justice and Consumers in assessing the EU approach and policy on minority shareholder protection. This aim was achieved through devising a sophisticated and high- level methodology which was designed to allow the results to be easily comprehensible despite the differences in how legal frameworks regarding shareholder rights are understood by different Member States. As a result, the study produced extremely relevant and important results. A noteworthy finding was that legal frameworks throughout the EU are designed in a way which ensures that shareholders are not susceptible to discriminatory or unjust treatment, equating their rights to the size of their economic investment.

The section of the study relating to Cyprus displays an assessment of the EU Member State’s legal framework with respect to minority shareholder protection, focuses on all primary categories of minority shareholder rights, and aspires to give EU policymakers a clearer picture of Cypriot  laws across the legal spectrum including established case law with respect to minority shareholder protection. Our participation in this project contributed to the overall ability of the study to identify inconsistencies and incompatibilities between the legal frameworks of EU Member States, and assists the Commission’s ongoing work on monitoring corporate governance developments within the EU.

The full publication may be found at https://bit.ly/2KRD4yg