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Company Liquidation in Malta

Company Liquidation in Malta

Updated on Wednesday 18th May 2016

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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:

  • -          the members’ voluntary liquidation,
  • -          the creditors’ voluntary liquidation,
  • -          court liquidation.

Our lawyers in Malta can provide you with information about the company liquidation proceedings.

Members’ voluntary dissolution in Malta     

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:

  • -          the duration of the company has expired,
  • -          it is undergoing restructuration,
  • -          the owner is retiring.

Member’s voluntary liquidation begins once the Maltese company’s shareholders pass a resolution and appoint a liquidator.

Creditors’ voluntary liquidation in Malta

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 in Malta

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.

 

 

Comments

  • Srilal Patabendige 2015-02-17

    Dear Sir/madam, Please note that we have a company ceased operation in Malta. Now directors are looking for liquidate the company as no use of keep in the company active as it ceased operation in July 2014. Therefore please confirm your your service and quote for the liquidation of the same.

    Hello Srilal, you may send your request at office@bridgewest.eu and one of our lawyers will answer you as soon as possible.

  • Hattie 2015-06-14

    I want to to thank you for this very good rеad! I certainly loved every little bit of it. I've got you bookmarked to check out new stuff you posts.

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