Company liquidation in Malta represents the procedure a company employs when concluding its business activities or when these activities can no longer continue by reason of insolvency. Company dissolution means the assessment of the Maltese company’s assets, payment of the creditors and the distribution of any remaining surplus between the shareholders. There are three ways of liquidating or winding up a company in Malta:
Our lawyers in Malta can provide you with information about the company liquidation proceedings.
In order to start the liquidation procedure for a Maltese company, its directors must make a declaration through which the company engages to pay all its liabilities in 12 months. Voluntary dissolution is possible in the following cases:
Member’s voluntary liquidation begins once the Maltese company’s shareholders pass a resolution and appoint a liquidator.
In case a Maltese company is no longer able to pay its creditors and the directors are not able to make a declaration of solvency, the creditors may ask for the winding up of the company. This procedure begins at the shareholders’ meetings which creditors will also attend. In this case, compared to the members’ voluntary liquidation, the creditor can appoint a liquidator of their own choice. You can obtain more information about creditors’ dissolution proceedings from our Maltese attorneys.
Compulsory liquidation of a Maltese company begins with a court order following the application for dissolution of the members or creditors. The Maltese court will appoint an official receiver who will carry out the investigation and draft a report for the court. The receiver will assess all the Maltese company’s assets and liabilities and the cause of insolvency. The receiver will also become the company’s liquidator and carry out any remaining activities until the creditors appoint another person.
The video below presents the main ways of liquidating a company in Malta:
If you need assistance in liquidation cases, please contact our law firm in Malta.