Online Dispute Resolution – ODR
The Online Dispute Resolution (ODR) platform, developed by the European Commission, offers a single point of entry that allows EU consumers and traders to settle their disputes for both domestic and cross-border online purchases.
This is done by channelling the disputes to national Alternative Dispute Resolution (ADR) bodies that are connected to the platform and have been selected by the Member States based on quality criteria and notified to the European Commission.
Online dispute resolution (ODR) is a branch of dispute resolution which uses technology to facilitate the resolution of disputes between parties. It primarily involves negotiation, mediation or arbitration, or a combination of all three. In this respect it is often seen as being the online equivalent of alternative dispute resolution (ADR). However, ODR can also augment these traditional means of resolving disputes by applying innovative techniques and online technologies to the process.
ODR can be applied in a wide range of disputes; from interpersonal disputes including consumer to consumer disputes (C2C); to court disputes and interstate conflicts. While the application of ODR is not limited to disputes arising out of business to consumer (B2C) online transactions, it is particularly apt for these disputes, since it uses the same medium (internet) for the resolution of e-commerce disputes which is greatly efficient in situations where the parties are interstate.
Key features:
- The platform is user-friendly and Consumers can fill out the complaint form on the platform in three simple steps.
- The platform offers users the possibility to conduct the entire resolution procedure online.
- The platform is multilingual. A translation service is available on the platform to assist disputes involving parties based in different European countries.
- Dispute threshold to 5.000 Euro.
- Resolution within 90 days.
Background to ODR
The legal basis for the establishment of the Online Dispute Resolution platform is the Regulation of consumer Online Dispute Resolution, which describes the main functions of the platform as well as the workflow for a dispute that is submitted through the platform. The Regulation builds upon the Directive on consumer Alternative Dispute Resolution, which ensures that consumers have access to Alternative Dispute Resolution when resolving their contractual disputes with traders.
Access to Alternative Dispute Resolution is possible irrespective of whether the product or service was purchased online or whether the trader is established in the consumer’s Member State.
Member States establish national lists of bodies offering Alternative Dispute Resolution procedures (ADR bodies). All Alternative Dispute Resolution bodies included in those lists comply with binding quality requirements set by the EU legislation.
Dispute Resolution body in Cyprus
Competition and Consumer Protection Service
Email address: ccps@mcit.gov.cy
Website: http://www.mcit.gov.cy/ccps
Phone: 0035722867153
To enter the Europeans Commission’s website click here
Read More
Cancelation of Shares
CAPITAL REDUCTION BY WAY OF REDUCING SHARE CAPITAL OR SHARE PREMIUM OF A CYPRUS COMPANY LIMITED BY SHARES
It is a fundamental principle of law that a company limited by shares should only in limited circumstances reduce its share capital. This principle derives from the need to protect third parties such as creditors against the risk that the company’s assets could be transferred and/or removed depriving them of their security over the debts. In order to safeguard such risks a reduction is only feasible subject to the approval by the appropriate District Court in the Republic if certain requirements are met.
A Company registered in the Republic of Cyprus can is if so authorised by its Articles, reduce its share capital by way of special resolution to:
• Either with or without extinguishing or reducing liability on any of its shares, cancel any paid-up share capital which is lost or unrepresented by available assets; or
• Either with or without extinguishing or reducing liability on any of its shares, pay off any paid-up share capital which is in excess of the wants of the company; or
• Cancel paid up share capital for the purpose of writing off losses of the company; or
• Cancel paid up share capital by the creation of a reserve, to be called “the capital reduction reserve fund”
Reasons & Benefits for a reduction of share capital
Once a company reduces its capital the reserves arising from a reduction are treated as realised profit and are distributable immediately. This is a relatively simple way for private companies to create a distributable reserve which can be used for the following reasons:
• To eliminate a deficit on the company’s profit and loss account and thereby enable the company to pay dividends
• To return excess capital to the shareholders
• A means of paying cash to shareholders where the company does not have sufficient distributable reserves to pay a dividend.
• The capital reduction proceeds can be used for conversion of non-distributable reserves to distributable reserves and reduce accumulated losses.
• It may lead to the return of any surplus capital to shareholders
• The procedure can also be used to simplify the capital structure of the company by eliminating certain classes of shares which have no valuable rights attached to them.
Procedure
A Share Capital reduction is effective subject to confirmation by the Court. The Court may require the company to show that no third parties are affected negatively by this reduction, and if so their consent shall be required. The Court may further request a publication to be made to give any third party the opportunity to file an objection to such a reduction.The procedure is mapped out as follows:
1. Passing a Shareholders special resolution approving the reduction of the share capital of the company with a right to vote majority of at least 75%.
2. If the company has creditors, such consents will have to be obtained and submitted with the court application as appendix.
3. Obtaining the courts consent and judgement.
4. Submitting relevant documents to the Registrar of Companies to finalise the reduction and obtaining relevant certificate.
Effective date of reduction of Share Capital
The reduction of the share capital will have no effect unless and until step (3) above takes place and the necessary filing is made to the Cyprus Registrar of Companies (s.67 (2) of the Law).
Read More