The Law also states in its introductory part that it seeks to ensure that justice is administered more effectively. The enhancement of competitiveness in Cyprus as a centre of qualitative services attracting foreign investments, thus contributing to the long-term economic development of the Republic of Cyprus, are additional goals. It is interesting to take note of the rationale of the legislator in the introductory part of the statute.

The reasoning in detail underpinning the adoption of laws is commonly found in the explanatory notes in the legislative process in Cyprus rather than in the statutes. This may be indicative of the importance attributed by the legislator to the reasons which have prompted the creation of the new courts. That said, the Commercial court will be competent to hear and determine any commercial dispute at first instance provided that the amount at dispute or the value of the dispute exceeds two million Euros.

However, there are disputes that the court can examine regardless of the amount or value involved (competition law disputes, intellectual property law disputes, arbitration related matters). Territorial jurisdiction of the Commercial Court is set forth in Section 12.

The appetite of the regulator to see Cyprus becoming a dispute resolution centre via law and jurisdiction clauses in private contracts referring to Cypriot courts, is obvious.

The Admiralty Court is regulated in Part III of the Law (14 sections). The Admiralty Court will be competent to examine at first instance any admiralty case («[…] επί πάσης ναυτικής υπόθεσης»). Admiralty cases are broadly defined for the purposes of the Law in Section 2.

Regardless of the amount involved, claims range, for example, from those concerning the possession and ownership of the vessel to claims in relation to vessel towing or to the mortgage or lien over a vessel. The influence of English admiralty law can be seen in numerous provisions and comes as no surprise.

-Law 161(Ι)/2022 – Shipping Lim- ited Liability Company (SLLC)

As noted in the relevant circular of the Cypriot maritime administration, “The enactment of Law 161(I)/2022 constitutes the implementation of action no. 14 of the new Long-Term National Strategy for Cyprus Shipping “Sea Change 2030”, adopted in October 2021 by the Council of Ministers and aims to simplify the procedures and operating regime of Cypriot shipping companies that own Cyprus ships” (Circular 31/2022, 21.12.2022).

Law 161(I)/2022 regulates registration and incorporation of the new corporate entity. It has been influenced by the provisions of the Cyprus Companies Law (Cap. 113), which has been the legal framework of reference for shipping companies. However, there are noteworthy differences between the Companies Law and the SLLC in view of simplifying certain aspects.

Furthermore, under the new Law, the Cyprus Shipping Deputy Ministry, which is also the Registrar of Cyprus flagged ships, will become the competent authority for the registration of SLLC.

It is worth mentioning, that shipping companies owning Cyprus ships already registered as limited liability companies in Cyprus will have the right, upon conditions, to request transfer to the new SLLC Register (Section 104 of the Law).

A last highlight is that the Law regulates electronic signatures in relation to documentation, which can be seen as a step towards modernisation and simplification.

Concluding remarks

The first expectation is to see the above-mentioned specialist courts becoming fully operational, and serving smoothly the vocation for which they were designed.

The adoption of secondary legislation (regulations) concerning SLLC is also a matter which deserves close attention.

The ultimate objective is to see both instruments contributing to the modernization of the Cypriot legal framework which governs the flag of the 11th largest merchant fleet globally while surrounding the activities of a vibrant shipping business centre.