Corporate deadlock is one of the most common – and disruptive – risks faced by companies, particularly in joint ventures and 50:50 shareholding structures. In his article “Precision before Decision – Deadlock in Corporate Business”, Joseph Evangelou, Associate at Patrikios Legal, examines how deadlock arises, why it can paralyse a company’s operations, and how it can be effectively anticipated and managed.

The article highlights the importance of proactive planning through well-drafted Shareholders’ Agreements and Articles of Association, setting out practical deadlock-resolution mechanisms such as Texas shootout and Russian roulette clauses, compulsory buyout/sell-out provisions, arbitration clauses, and chairperson casting votes. Joseph explains how these tools can unlock decision-making and avoid costly disputes.

Where contractual solutions fail, the article also explores judicial remedies under the Cyprus Companies Law, including winding-up on “just and equitable” grounds and minority oppression claims, noting the courts’ cautious approach and the high evidentiary threshold required.

Ultimately, the article underscores that careful legal structuring at the outset is key to preventing deadlock from escalating into litigation and safeguarding the long-term viability of the business.

We warmly congratulate Joseph on this excellent contribution!

To learn more about Joseph, you may view his profile here: https://www.pavlaw.com/team/joseph-evangelou/

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