INSOLVENCY

Maltese law relating to the liquidation of companies is largely regulated by the Companies Act, though, in the case of insolvent liquidations, other general rules and principles of civil and commercial law are directly applicable. Bankruptcies of individual traders, on the other hand, are regulated by the provisions of the Commercial Code.

The company recovery procedure has recently been introduced into the Maltese Companies Act, placing further onerous obligations on the Directors of a company to keep shareholders properly informed of any steps taken to remedy any situation where the company is unable to pay its debts.

The firm has developed a strong practice in these areas and has advised on a number of significant liquidations - solvent, insolvent, voluntary and court-ordered, and bankruptcies, both large and small.

Our services in this area include rendering advice and assistance to individual stakeholders in relation to the liquidation of Maltese companies and any related cross-border implications of such liquidation proceedings; advising liquidators responsible for the winding up of insolvent companies; instituting appropriate court procedures for the initiation or facilitation of liquidations; and the representation of individual stakeholders for the purposes of overseeing the dissolution and winding up and ensuring compliance with law as well as applicable formalities and procedures.