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Published:
1.5.2021
Last Updated:
25.7.2024

Malta updates its Company Structuring & Insolvency Laws post-COVID

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Summary

A short guide to the rules and regulations applicable to Companies' reconstruction, restructuring & winding up in COVID 19 pandemic times.

cONTINUE rEADING

On 12 May 2020, Malta published regulations entitled Legal Notice 192 of 2020, Companies Act (Company Reconstructions Fund) Regulations with the aim of creating and regulating the administration of a fund intended to facilitate Company Recovery Procedures (“CRP”) instituted in accordance with article 329B of the Companies Act. 

On 15 September 2020 Malta enacted Legal Notice 373 of 2020 ‘The Companies Act (Suspension of Filing for Dissolution and Winding Up) Regulations’. These rules related to company insolvency are  aimed at alleviating corporations of insolvency consequences and problems in relation to Covid 19 aftermaths. 

Malta's  legal regime for Company Recovery Procedure (“CRP”) provides means for struggling companies to resort to a procedure that aims at assisting enterprises recuperate from their current economic quandaries whilst simultaneously maintaining other stakeholders’ interests in mind. 

In the case of insolvency, during these pandemic months, in September 2020, changes to company officer responsibilities have been implemented to address the biggest concern of directors of companies that may be imputed with personal liability in the case of alleged wrongful trading and insolvency scenarios. The main change was the introduction of clauses that protect such directors who would otherwise be reluctant to endure in their management of the enterprise in such COVID-19 periods of extraordinary hardship. 

Such changes were a welcome revision of the law in that they seek to strike a balance between the rights of the diverse stakeholders in a company and the rights of management that is seeking to plough on even during these unprecedented, negative times. 

For a detailed publication on this matter please refer to Malta Company Reconstruction, Restructuring and Insolvency - COVID 19 applicable rules

Read more on Company Restructuring and Insolvency in Malta

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A short guide to the rules and regulations applicable to Companies' reconstruction, restructuring & winding up in COVID 19 pandemic times.

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Copyright © 2025 Chetcuti Cauchi. This document is for informational purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking any action based on the contents of this document. Chetcuti Cauchi disclaims any liability for actions taken based on the information provided. Reproduction of reasonable portions of the content is permitted for non-commercial purposes, provided proper attribution is given and the content is not altered or presented in a false light.

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