Constantinos Clerides

In a unanimous judgment given on the 12th of June 2025, the Supreme Court of Cyprus reaffirmed that a mortgage creates an autonomous primary obligation, independent of the lender's ability to prove a debt against the mortgagor personally.

For years, the word "lobbying" in Cyprus, as in many parts of the world, has carried a cloud of suspicion. It evoked images of backroom deals, informal access, and opaque influence. But with the enactment of the Law on Transparency in Decision-Making Processes and Related Matters (Law 20(I)/2022), Cyprus has taken a bold legislative step to bring lobbying out of the shadows and into a regulated framework of transparency, accountability, and public trust.

Trespass - the unlawful and direct interference with immovable property-continues to be one of the most pressing threats to landowners' rights in Cyprus. Whether in the form of unauthorised entry, refusal to vacate, or continued occupation without legal basis, trespass can cause immediate and often irreparable harm. In such cases, how and when can a plaintiff obtain an interim injunction to stop the unlawful occupation or recover possession?

This article examines a recent District Court decision in which the Court was called upon to determine whether assets transferred via trust declarations during the lifetime of the deceased should be excluded from the deceased's estate for the purposes of inheritance under the Wills and Succession Law, Cap. 195. The case, successfully handled by our firm, reinforces the legal distinction between inter vivos dispositions and testamentary or intestate succession, and affirms the enforceability of properly constituted trusts under Cypriot law.

In a recent judgment dated 28 May 2025 were our office co-handled the case successfully on behalf of the tenants, the Rent Control Court of Nicosia dismissed an application for the determination and increase of rent relating to a commercial premises, holding that it lacked jurisdiction to adjudicate the matter. The Court found that the tenancy remained contractual and periodic, and that the tenant had never acquired statutory tenancy status within the meaning of the Rent Control Law (Law 23/1983).

In today’s flexible work culture, many professionals—journalists, consultants, salespeople—operate under titles like “freelancer” or “partner.” But is that really what the law sees?

In the digital age, intellectual property rights (IPRs) such as trademarks, copyrights, source codes and softwares are not only valuable but also vulnerable. Their intangible nature makes them susceptible to immediate dissipation, assignment, or exploitation in ways that can irreversibly undermine their value. Recognising this, Cypriot courts have developed a robust approach to the interim protection of IPRs pending the final adjudication of a dispute.

The case involved a claim for lost profits by a Cypriot Company which had submitted a bid for the supply of legal publications but was not awarded the contract. Although the company successfully challenged the decision of the Tender Board and had it annulled, the contract had already been executed, making a re-evaluation of its bid impossible.

The Appeal Court’s decision in Civil Appeal No. 366/2019 (Panayiotis Tsielepis v. Nichropa Developers Ltd) provides a significant analysis of the principles of unjust enrichment, clarifying the legal framework under which restitution may be ordered when a party benefits unfairly at another’s expense. The ruling reaffirms the remedial nature of unjust enrichment, ensuring that financial advantages obtained without a legal basis must be returned.

The eviction of statutory tenants due to demolition is a significant and complex legal issue governed by the provisions of the Rent Control Law, Law 23/83, and the corresponding case law.

What Constitutes an Act of Bankruptcy?

According to the law, an act of bankruptcy occurs under several circumstances, including:

In the ever-changing environment of commercial transactions in Cyprus, businesses face numerous legal obligations and regulatory requirements. As companies enter into contracts and partnerships, the importance of compliance and due diligence becomes paramount. This article discusses how these practices are essential in safeguarding businesses from potential legal challenges.

When buying property in Cyprus, registering the purchase agreement with the Land Registry is a crucial step that safeguards your investment and provides significant benefits.

The recent ruling given on 13/11/2024 addresses the enforcement of a foreign arbitral award issued by the London Court of International Arbitration, shedding light on the interplay between the New York Convention and local laws in Cyprus.

Floating charges serve as a vital financial tool in Cyprus, allowing businesses to secure loans while retaining the flexibility to manage their assets. Here's a concise overview of their key features and implications:

Under the Law on International Commercial Arbitration of 1987 (101/1987), the recognition and enforcement of foreign arbitral awards in Cyprus are governed by specific terms and conditions designed to ensure compliance with both local legal standards and international obligations.

In the context of Cypriot contract law, particularly under Cap. 149, bonds in customary form serve as valuable tools for facilitating financial transactions and ensuring legal obligations are met. Defined as written promises created between parties, these bonds are signed in the presence of at least two witnesses who are competent to contract, providing a robust legal foundation for enforcing payment agreements.

In the realm of corporate insolvency, the liquidator's role is critical to ensuring the orderly dissolution of a company. According to the Cyprus Companies Law, particularly Article 233, liquidators are vested with a range of general powers designed to facilitate effective asset management and realisation during the liquidation process.

Mediation has gained recognition as an effective method for resolving disputes in Cyprus, offering parties a confidential and less adversarial alternative to traditional litigation. The legal framework governing mediation not only facilitates settlement but also provides mechanisms for enforcing these agreements through the courts.

In the realm of corporate finance and insolvency, the appointment of receivers and administrators plays a critical role in managing distressed companies in Cyprus. This legal mechanism allows for the effective oversight and recovery of assets, safeguarding the interests of all stakeholders involved.

Article 202 of the Companies Act provides a legal framework for minority shareholders in Cyprus facing oppressive conduct by majority shareholders. Key provisions include:

In Cyprus, a company may be subject to liquidation by the court under certain conditions as outlined in the Companies Law. This process is significant in ensuring that companies that are unable to meet their obligations are properly dissolved in a manner that protects the interests of creditors and stakeholders.

In Cyprus, lease agreements for real estate that extend beyond 15 years can be registered with the Department of Land and Surveys. Once registered, the agreement grants a real right to the tenant, which is transferable, mortgageable, inheritable, and can be sold at public auction if necessary.

In Cyprus, the legal provisions governing the appointment of receivers and managers are crucial for the proper management of a company's assets amid financial distress. These guidelines set out eligibility requirements, processes, and obligations, ensuring a structured approach to insolvency.

Under the Companies Act in Cyprus, the Ministirial Cabinet or the Court has the authority to appoint one or more inspectors to investigate the affairs of a company upon receiving a request from its members. This process is vital for ensuring transparency and accountability within corporate operations.

Normally, Courts will not issue a freezing injunction against a person who is not a party to the proceedings and against whom there does not exist a serious issue to be tried. The possibility, however, of issuing an interim injunction against a third party who is not a "substantive" or the "principal" Defendant and against whom there is no serious issue to be tried has been recognised in both English and Cypriot case law.

In the Appeal Court’s judgment issued recently on 12/07/2024 in the case of"REFERENCE TO THE APPLICATION OF THE APPELLANTS (MINORITY SHAREHOLDERS) and IN RELATION TO Company FAIR CHAMPIONS MERIDIAN LTD, the court clarified some procedural problems that were raised during the first instance judgment.

Under Rule 26 of the new Procedural Rules adopted in September of 2023, a Claimant who has his habitual residence outside the European Union or a Member State of the European Union may, at any stage of the claim, be ordered to provide security for costs, even if  he may reside temporarily within Cyprus or in a Member State of the European Union. It is understood that low-income foreign workers are exempt from any order to provide security for costs.

In the recent judgment of the new Cyprus Court of Appeal dated 09/02/2024, Regarding the Petition of Evelyn Bates v. Regarding the Company M. Moniatis & Sons Ltd, Civil Appeal no. 145/2018, 9/2/2024 the following were decided:

Recent Developments in the Law on Cyprus Injunctions (Court Orders): The new Appeal Court clarifies the relationship and differences between the duty for Full and Frank Disclosure and the Equitable Doctrine of “he who comes to equity must come with clean hands”:

Article 16(1) of Cyprus Contract Law (Cap. 149) describes that a contract is considered to have been concluded as a result of "Undue Influence" when the relations existing between the parties are such that one of them is in a position to dominate the will of the other and to benefit from this position by securing an unfair advantage over another.

With reference to the bankruptcy process, it has been decided and it has been characterised that it has a quasi-criminal nature with the aim of protecting and securing the debtor's property so that it can be used as the law defines which is for the satisfaction of the creditors in whole or in part and equally (see London Clubs Ltd v. P. Papadopoulos (2002) 1(C) A.A.D. 1699). Further, in Rashid v. Papori Pol. Appeal No. 198/2012 dated 6/6/2018 the following was mentioned in relation to the bankruptcy procedure: " - The same here, by analogy, bearing in mind that the bankruptcy procedure is a sui generis procedure characterised as quasi-criminal in nature (Williams & Hunter on Bankruptcy, 12th ed. p. 1), where the applicant having no other choice, promoted the bankruptcy of the respondent legally to protect his own interests as well. The fact that a creditor takes the initiative for the bankruptcy of a debtor, which entails some advantage to him, is not considered as equivalent to the use of an unfair purpose or a parallel abusive procedure, (Petrakis v. Kimonos (2006) 1 A.A.D. 1311 ). Fraud or wrongful securing of money for the benefit of the particular creditor needs to be proven in order for a finding that the petition is brought forward on an abusive or unfair basis.

In Re Sherborne Park Residents Co Ltd (1986) 2 B.C.C. 99528 Ch (Companies Ct), Hoffmann J held that an action by a shareholder seeking to set aside an improper issue of shares, as in Howard Smith Ltd v Ampol Petroleum Ltd [1974] A.C. 821 PC, was not a derivative claim at all but a personal claim by the individual shareholder who is aggrieved by it (at 99530– 99531):“Although the alleged breach of fiduciary duty by the board is in theory a breach of its duty to the company, the wrong to the company is not the substance of the complaint.

The rule is that a shareholder, assuming it otherwise has a cause of action as well as the company, cannot recover for loss which is merely reflective of the company’s loss.

Duty in equity to provide shareholders with sufficient information.

The courts have the power to issue interim injunctions prohibiting a Party from bringing court or arbitration proceedings.  In general and where there is the element of foreign parallel proceedings, anti-suit injunctions are intended to prevent "forum shopping" or the bringing of proceedings in a "forum non conveniens" or where the foreign proceedings have been issued in bad faith and thus have an oppressive or vexatious effect. Such injunctions are issued in personam, so that they are compatible with the need for comity between different countries and their court systems.

Under Article 243(1) of the Cyprus Companies Law the Court may at any time after the issuance of a liquidation order, at the request of either the liquidator or the official receiver (insolvency department) or any creditor or contributory, and after proof to the satisfaction of the Court that any liquidation proceedings should be stayed or terminated, it may issue an order staying or terminating the proceedings, either in completely or for a limited period of time with such terms and conditions as the Court deems appropriate.

Under Article 211 of the Cyprus Company Law (CAP. 113), a company may be liquidated by the Court in the following cases:

Norwich Pharmacal order (“NPO”), has its roots in the known UK House of Lords case of Norwich Pharmacal Co ν. Commissioners of Customs and Excise [1974]. It requires a party to disclose certain documents or information to the applicant. NPOs are commonly used to identify the proper defendant to an action or to obtain information to plead a claim.

Perfection of a Pledge Agreement pursuant to Article 138(1) and 138(2) of the Cyprus Contract Law (Cap. 149):

A Claimant who successfully applies in Court for an injunction freezing the assets of a party places themselves in a very strong position from the outset of a dispute, a position which might bring about an early and successful outcome in that dispute. This arguably makes freezing injunctions, also known as "Mareva" injunctions from the English precedent of Mareva Compania Naviera SA v. International Bulk Carriers SA (1975) , the most important and effective type of court orders.

An injunction is an order of the court that requires a party either to do a specified act (mandatory injunction) or to refrain from doing a specified act (prohibitory injunction - for example, not to trespass on identified land). Technological advances combined with the effects of globalisation allow for rapid transactions and thus create the need for more effective remedies and solutions which can be requested and delivered with haste. The Cypriot Courts recognising this need, especially in cases with an international character, have adapted accordingly and have granted to parties various types of injunctions depending on the circumstances of each case.

Constantinos Clerides after successfully teaching Company Law at Frederick University for the academic year 2023-2024, has been assigned an additional subject to teach, Commercial Law. His expertise in Corporate and Commercial law is invaluable to the firm and we wish him all the best in this new endeavor!

Our very own Partner, Constantinos Clerides opening discussion at Cyprus Arbitration Day 2024: Modernizing Arbitration Laws. The event was sponsored by CleridesLegal and took place on the 20th May 2024 in Limassol.

European Legal Training Centre Spotlight - a platform designed to showcase our distinguished legal instructors and their respected law firms.

Constantinos Clerides completed another three-day / nine hour training course as a Legal Trainer and instructor for legal professionals in their Continuing Professional Training (9 CPDs) on behalf of the European Legal Training Center.

On 11/07/2023, the Appeal Court in Cyprus heard a case where the Russian Federation had requested the extradition of a Russian in order to stand trial for the crime of theft of funds from the federal budget and for knowingly providing false and misleading information when recovering compensation in connection with the known Chernobyl accident.

The opportunities and threats brought by artificial intelligence and language models have a significant impact on legal practice even today. However, experts predict that in just two years, their influence will be felt much more strongly, and those who are not yet working with modern technologies may become uncompetitive. The various aspects and new practices of lawyers in the context of digitalization became the main topics of the annual Best Legal Conference.

"Just completed a 9 hour training course as a Legal Trainer and instructor of 28 legal professionals in their Continuing Professional Training (9 CPDs) on behalf of European Legal Training Center. Special Thanks to all 28 attendees for dedicating 9 hours out of their busy schedules to hear what I had to say on the matter of Managing and Resolving Shareholder Disputes in Cyprus, a subject to which I have had the good fortune to be involved in as a litigation practitioner.

European Legal Training Center presents a course by Constantinos Clerides, accredited by CBA. Managing and resolving shareholder disputes takes a practical approach to shareholder disputes, focusing on the importance of understanding shareholder resolution methods, establishing clear policies and learning how to draft a shareholder's agreement.

Constantinos Clerides, Head of our Corporate Department, successfully completed and received a passing grade in MA1.1x: M&A: Concepts and Theories, MA1.2x ADVANCED TOPICS and MA1.3x: STRUCTURING THE DEAL courses of study offered by NYIF.

Constantinos Clerides successfully completed HarvardLawShool2X: Contract Law: From Trust to Promise to Contract a course of study offered by HarvardX, an online learning initiative of Harvard University.

Ο Κωνσταντίνος Κληρίδης παρακολούθησε σεμινάριο με θέμα Fund Set Up in Cyprus, που διοργανώθηκε απο το European Institute of Management & Finance.

Constantinos Clerides as Head of our Corporate Department represented our law firm at the ANNUAL COMMERCIAL CONFERENCE. The conference took place at the Law Society Council Chamber in London.

Ο Δρ. Χρίστος Κληρίδης και ο Κωνσταντίνος Κληρίδης με τον Πρόεδρο του Ανωτάτου Δικαστηρίου Αγγλίας Lord Neuberger. Λονδίνο, Οκτώβριος 2017.

Κατάσχεση χρημάτων από τραπεζικό λογαριασμό ταμείου πρόνοιας - μέτρα εκτέλεσης δικαστικής απόφασης. Seizure of money directly from provident fund’s bank account - execution of judgment

Απόρριψη διατάγματος παρεμπόδισης εισαγωγής ή και εκτελώνευσης ή και διανομής προιόντων που κατ' ισχυρισμό παραβιάζουν εμπορικά σήματα. Judgement in relation to an injunction that prohibited the im...

Απόρριψη αίτησης για διάταγμα αποκάλυψης εγγράφων και πληροφοριών τύπου Norwich Pharmacal. Successful defence in petition for disclosure orders regarding information and documents - rejection of No...

Το Δικαστήριο απέρριψε αίτηση αναστολής αγωγής ή και παραμερισμό επίδοσης λόγω ρήτρας δικαιοδοσίας στην Ελβετία. Court rejected petition to stay proceedings - jurisdiction clause. Swiss/Cyprus Luga...

Το Δικαστήριο επικύρωσε υπερ του πελάτη μας ειδοποίηση πτώχευσης ατόμου και απέρριψε αίτηση παραμερισμού της ειδοποίησης - Bankruptcy proceedings against individual

Αντικείμενο της παρούσας διαδικασίας ήταν η αίτηση της Αιτήτριας, με την οποία ζητούσε την εκκαθάριση της Καθ’ ης η αίτηση εταιρείας. Το γραφείο μας εμφανίστηκε για την Καθ᾽ης η αίτηση εταιρεία και...

Η Αιτήτρια ζητούσε την αναστολή εκτέλεσης απόφασης ως ότου επιδικαστεί η εφεσιβληθείσα πρωτόδικη απόφαση που είχε εκδοθεί υπέρ της Καθ᾽ης η αιτηση. Το Δικαστήριο απέρριψε την αίτηση και υιοθέτησε τ...

Την 5/6/2020 εκδόθηκε η απόφαση στην υπόθεση με αρ. 4420/10, η οποία αφορά αγωγή για δυσφήμιση και επιζήμια ψευδολογία. Στην παρούσα υπόθεση υπήρξαν σαφής αναφορές που καταδείκνυαν την εσκεμμένη αν...

Ακύρωση της απόφασης του πειθαρχικού της Επιτροπής Εκπαιδευτικής Υπηρεσίας με την οποία είχαν κρίνει τον Αιτητή πελάτη μας ένοχο για απρεπή συμπεριφορά.

 Το γραφείο μας ανάλαβε την υπεράσπιση στην υπόθεση και κατάφερε να αποδείξει μέσω νομικών αρχών και μαρτυρίας ότι τα ποσά που η θανούσα πήρε από την Ενάγουσα δεν ήταν αποπληρωτέα αφού ήταν προϊόν ...

Το Διοικητικό Δικαστήριο ακύρωσε απόφαση Ιεραρχικής Προσφυγής που επικύρωνε αρνητική απόφαση της Πολεοδομικής Αρχής εις βάρος των πελατών μας.