INTRODUCTION TO CYPRUS LAW
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1 INTRODUCTION TO CYPRUS LAW Andreas Neocleous & Co Editor DENNIS CAMPBELL, BA, JD, LLM Member of the New York and Iowa State Bars Director, Center for International Legal Studies Salzburg, Austria Published under the Auspices of the Center for International Legal Studies Yorkhill Law Publishing
2 Table of Contents Forewords Table of Cases Table of Legislation Table of Rules and Regulations References and Abbreviations v xxi Ivii Ixv Ixvii CHAPTER I LEGAL HISTORY Introduction 1 Ancient Times 1 The Middle Ages 5 Modern Times 6 Legal History 9 The Present 13 The Future and the European Dimension 13 CHAPTER I CONSTITUTIONAL LAW Introduction 15 The Constitutional Structure 16 The System of Government 21 Distribution of State Power 23 The Supremacy of the Constitution 28 The Protection of Human Rights 32 The Application of the Constitution 35 The Turkish Invasion and Its Effect on the Existence of Cyprus 40 The Idea of Federation 41 Conclusion 43 CHAPTER 3 ADMINISTRATIVE LAW Introduction 45 Legality of Public Administration 46 Administrative Acts 49 Regulatory Acts 53 Article 146 of the Constitution 54 General Principles of Administrative Action 57 Administrative Organs 63 Administrative Justice 66 The Ombudsman 71 European Convention 72 European Union 72
3 xiv TABLE OF CONTENTS CHAPTER 4 JUDICIAL SYSTEM AND COURT PROCEDURE Introduction 73 Court Structure 74 The Judiciary 77 The Legal Profession 78 Legal Fees 79 Sources of Law 80 Jurisdiction of Cypriot Courts 80 Limitation of Actions 83 Pre-Trial Procedure 83 Interlocutory Relief 94 Mareva Injunctions 97 Anton Piller Orders 98 The Trial 98 Evidence 99 Judgment 102 Appeals 103 Enforcement of Domestic Judgments 103 Enforcement of Domestic Arbitration Awards 103 Enforcement of Foreign Judgments and Arbitration Awards 104 CHAPTER 5 ENFORCEMENT OF FOREIGN JUDGMENTS AND ARBITRATION AWARDS Introduction 105 Enforcement at Common Law 106 Enforcement under Statute 108 Recognition as a Defence 113 Other Aspects 114 Arbitration Awards 117 CHAPTER 6 LAW ON FOREIGN INVESTMENT Introduction 121 Protection of Foreign Investment 128 Double-Taxation Treaties 151 Indirect Investment 191 Direct Foreign Investment 218 CHAPTER 7 LAW OF TAXATION Introduction 237 Income Tax 239 Corporate Tax 244 Taxation of Dividends 247
4 TABLE OF CONTENTS xv Double-Taxation Relief 247 Value-Added Tax 248 Capital Gains Tax 253 Immovable Property Tax 256 Estate Duty 257 Assessment and Collection of Taxes 266 Special Defence Contribution 270 CHAPTER 8 MARITIME AND ADMIRALTY LAW Maritime Law 273 Admiralty Law 298 CHAPTER 9 CORPORATE LAW Company Law 317 Securities Law 353 CHAPTER IO LAW OF CONTRACT Introduction 373 Formation of a Contract 374 Capacity 380 Terms of the Contract 382 Illegality 387 Assignment 389 Privity of Contract 390 Novation 390 Discharge 391 Remedies for Breach of Contract 396 Quasi-Contract and Restitution 401 Agency 404 Bailment.409 Sale of Goods 409 CHAPTER I I AGENCY AND DISTRIBUTION Introduction 421 Formation of Agency Relationship 428 Agent's Rights and Duties 428 Disclosed and Undisclosed Agency 433 Commission on Sales 433 Reimbursement of Agent's Expenses 437 Agent's Accounting Duties 438 Indemnity and Failure to Exploit Agency 439 Termination and Revocation 439
5 xvi TABLE OF CONTENTS Termination Indemnity and Damages 443 National Competition Law 448 Litigation Issues - Principal's Exposure to Local Jurisdiction 452 Product Liability 454 Distributorship 457 CHAPTER 12 CRIMINAL LAW AND PROCEDURE Introduction 459 General Principles of Criminal Responsibility 461 General Principles of Criminal Procedure 465 General Exemptions from Criminal Liability 488 Attempts 495 Offences Relating to Property 499 Offences against the Person 510 Sentencing 527 CHAPTER 13 LAW OF TORTS Introduction 541 Sources of the Law 545 Classification of Torts 546 Damages 571 Limitation 573 CHAPTER 14 LAND LAW Introduction 575 The Old Land Law Categories of Land 576 The Immovable Property (Tenure, Registration, and Valuation) Law 580 The Cyprus Land Registry Department 581 Immovable Property 586 The Right of Private Ownership in Immovable Property 587 The Tenure of Immovable Property 590 Restrictions on the Exercise of the Right of Ownership 593 Rights of Way and Easements over Immovable Property 595 Compulsory Acquisition of Access to a Public Road 597 Acquisitive Prescription (Adverse Possession) 598 Registration of Leases and Sub-leases 603 Registration of Trusts 603 Registration of Restrictive Contracts 603 Commonly Owned Buildings 604 Powers of the Director of the Land Registry 607 The Relevant Legislation 608 Appendix 615
6 TABLE OF CONTENTS xvii CHAPTER 15 LAW OF SUCCESSION Introduction 617 Legislation 618 Succession 619 Wills 629 Revocation of Wills 638 Rights of Surviving Spouse 642 Succession of the Kindred 642 Contribution (Hotchpot) 644 Administration of Estates 645 Re-Sealing of Probates or Letters of Administration 653 Appendix A 655 Appendix B 656 CHAPTER U FAMILY LAW Introduction 657 Marriage 660 Interruption of Marital Life 665 Divorce 671 Parental Care 674 Maintenance 677 Maintenance after Divorce 678 Children Born Out of Wedlock 679 Adoption 679 International Law 681 CHAPTER 17 BANKING LAW The Banking System 685 Licensing of Banks 696 Foreign Bank Operations and Financial Services Companies 701 Regulatory and Supervisory Rules of Established Banks and Financial Services Companies 706 International Supervision 711 Money Laundering in the Financial Services Sector 711 CHAPTER is INSURANCE LAW Introduction 721 Fundamental Principles of Insurance Law 723 Special Types of Insurance 733 Insurance Market 743 Taxation 749
7 xviii TABLE OF CONTENTS Competition Law and Insurance Law 750 Consumer Protection 754 Conclusion 754 CHAPTER 19 BANKRUPTCY AND INSOLVENCY Introduction 755 Bankruptcy 755 Insolvency 762 Dissolution 767 CHAPTER 20 LABOUR LAW Introduction 773 Industrial Relations 774 Industrial Relations Partners 775 Employment Policy and Statistics 778 Government Training Schemes 779 Workers' Safety, Health, and Welfare 780 Care and Rehabilitation of the Disabled 781 Social Insurance 781 Annual Holidays with Pay Scheme 783 Industrial Disputes Court 783 Termination of Employment 785 Redundancy 787 Sex Discrimination 789 Employment Conditions 802 Employment of Foreigners 803 CHAPTER 21 INTELLECTUAL PROPERTY Introduction 807 Domestic Law 807 International Agreements 808 Patents 809 Trade Marks and Service Marks 812 Designs 818 Trade Names 819 Copyright 820 Conclusion 823 CHAPTER 22 FRANCHISING Introduction 825 What Is a Franchise? 826 Financing a Franchise 827
8 TABLE OF CONTENTS xix Competition Law 832 Intellectual and Industrial Property Rights 840 Taxation 846 CHAPTER 23 TRUSTS Introduction 851 Trust Law 852 Types of Trusts 853 Trustees 857 Beneficiaries 860 International Trusts Law 861 Trust Companies 866 Cypriot Offshore Trusts 868 Taxation 868 Cypriot Trusts and Double-Taxation Treaties 869 CHAPTER 24 PRIVATE INTERNATIONAL LAW Introduction 871 Evidence of Foreign Law 872 The Principle of Forum Non Conveniens 872 Application of Foreign Law - The Doctrine of Renvoi 874 Exclusion of Foreign Law 875 Domicile 876 Contract 877 Tort 881 Property 885 Succession 889 Bankruptcy 892 Corporations 895 Family 896 Enforcement of Foreign Judgments and Arbitration Awards 900 International Treaties and Conventions 901 CHAPTER 25 ACCESSION TO THE EUROPEAN UNION Introduction 903 Legal Basis for Accession 904 Key Actors 906 Enlargement Policy Instruments 910 Shaping an Accession Strategy for Cyprus 913 Cyprus' Progress towards Accession An Interim Assessment 916 Pointers to the Future 919
9 xx TABLE OF CONTENTS Biographies of Contributors 921 Bibliography 927 Index 939
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