CYPRUS Law and Practice Contributed by: Marios Pelides and Dominique Pelides, Georgiades & Pelides
within a further 60 working days, whether the investment may be prejudicial to the safety or public order of the Republic of Cyprus. In making its decision, the Ministry must take into account a variety of factors, including whether: • the foreign investor is controlled by a third- country government; • there is a serious risk that the foreign investor will be involved in illegal or criminal activities; and • following implementation of the investment, the ability of other shareholders to participate in the undertaking (and its decision-making) will be satisfactorily preserved. If the Ministry concludes that the investment may be prejudicial, it may impose conditions on implementation of the investment or may forbid it entirely (or, to the extent the investment has already been implemented, unwind it).
The Ministry has discretion to “stop the clock” and request further information from the notify- ing party, such that in practice, the timeframes listed above may be elongated. If a notifiable investment is not notified to the Ministry in accordance with the law, then the investment is automatically deemed to be in breach of the provisions of the law and the Min - istry may take any and all measures at its dis- posal to forbid and/or terminate and/or unwind the investment in question. The Ministry also has the power to impose administrative fines and obtain injunctions or other interim measures.
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