Company liquidation in Malta falls under Title II of the Company Act. According to the law, there are three ways in which a Maltese company can be wound up under specific conditions. The following types of company liquidation procedures are accepted by the Maltese legislation:
- – voluntary dissolution requested by the shareholders;
- – voluntary dissolution requested by the creditors;
- – compulsory liquidation ordered by court.
Our company formation agents in Malta can offer more information about the provisions of the Company Act with respect to dissolution procedures.
Reasons to liquidate a company in Malta
The following causes are legitimate when applying for company liquidation in Malta:
- – the shareholders have passed an extraordinary resolution through which the dissolution has been approved;
- – the company has had no activity during the last two years, case in which a court can dispose the liquidation;
- – the number of shareholders is below 2 for six months, case in which the court will order the liquidation;
- – the number of directors is below 2 for six months.
The last two reasons do not apply to single-member companies or to companies changing business forms.
In the case of creditor’s company dissolution, a company will be considered unable to pay its debts after 24 weeks of failing to pay the outstanding amount.
You can also find out from the video below how you can liquidate a company in Malta:
The company liquidation process in Malta
In the case of voluntary company liquidation, the shareholders are required to announce the Companies Registrar within 14 days from the decision. The following documents will be filed together with the notification:
- – the resolution passed by the shareholders;
- – a declaration of solvency;
- – a declaration with the company’s assets and liabilities;
- – a statement with the appointment of the liquidator;
- – the company’s audited financial statements.
In the case of compulsory liquidation, the court will order the dissolution upon the request of the creditors or the members. The court will also appoint the official receiver acting as a liquidator.
In all types of company dissolution procedures, the official receiver will assess the company’s assets and debts, liquidate the debts and if any amount remains, will distribute among to the shareholders.
For assistance in company liquidation, you can contact our Maltese representatives.