North Cyprus – Limited Company
A limited company in both North Cyprus (TRNC - Turkish Republic of North Cyprus) and elsewhere can have several categories of shares. These are -
1. Ordinary Shares. This is the most popular form of shares, and they have no special rights or restrictions. They may be divided into different classes of different values. In North Cyprus it is customary to have the shares issued as 1 Turkish Lira each.
2. Preference Shares. As the name suggest, this class of shares has priority in the distribution of company profits or annual dividends. Some preference shares provide a fixed dividend that is guaranteed regardless of the performance of the company. In the event of the company winding up, these shares have a priority call on assets.
3. Redeemable Shares. This class of shares include a right, exercisable by either the company or the shareholder, for the company to buy back the shares at a fixed time and often at a fixed or calculated price.
4. Bearer Shares. This is a share that confers benefits on the 'bearer'. The bearer can change without the need for any documentary record. The identity of the current bearer is not stated in the company's shareholder register. The register will state that a certain number of bearer shares, of a certain price denomination, were issued on a specific date. The current bearer is accorded the right to administer the shares as would an ordinary shareholder.
A limited company has many advantages, and these include -
There is a popular misconception that directors can easily become liable for the debts of a company or can be sued or even prosecuted if they are careless, negligent or just plain stupid. Regulators in most jurisdictions use a very light hand to administer company regulations, and, unless malpractice is proven, directors have a great deal of freedom in how they operate.
Follow this link for North Cyprus Company - Distinctive Features
There are several pages of information on this topic -
North Cyprus Company
North Cyprus Limited Company - Distinctive Features
TRNC Company - Nominee
Copyright - Leslie Hardy, 21 June 2013