Home / CY AIF Law of 2018 / PART ΙΙ: PROVISIONS REGARDING THE ALTERNATIVE INVESTMENT FUNDS / Chapter 8: Special provisions / Part 2 - Fixed or variable capital investment companies / [62] Reduction of assets or capital of an investment company.
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62. Reduction of assets or capital of an investment company.
(1) When the assets of the investment company are reduced and fall below the two thirds (2/3) of the minimum assets requirement, as this is specified by article 14(1) or when the initial capital of the investment company is reduced and fall below the two thirds (2/3) of the minimum initial capital requirement, as this is specified by article 58(2), its board of directors shall call a general meeting of its shareholders, in order to decide in relation to its dissolution; the decision can be taken by simple majority of the shareholders present or represented at the general meeting, without the need for a quorum.
(2) When the assets of the investment company are reduced and fall below the one fourth (1/4) of the minimum assets requirement, as this is specified by article 14(1) or when the initial capital of the investment company is reduced and fall below the one fourth (1/4) of the minimum initial capital requirement, as this is specified by article 58(2), its board of directors shall call a general meeting of its shareholders, in order to decide in relation to its dissolution; the decision can be taken by a majority of the one fourth (1/4) of the votes of the shareholders present or represented at the general meeting, without the need for a quorum.
(3) In the cases of sections (1) and (2), the general meeting shall be called within forty (40) days from the day of the reduction of the assets or initial capital by two thirds (2/3) or one fourth (1/4), as applicable.
(4) The board of directors of the investment company shall disclose, without undue delay, the fact that the assets or initial capital of the investment company were reduced by two thirds (2/3) or one fourth (1/4) as applicable, to the Securities and Exchange Commission which may demand the dissolution and liquidation of the investment company.
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