- within Corporate/Commercial Law, Intellectual Property, Litigation and Mediation & Arbitration topic(s)
In a nod to its own legal post, Malta is reinstating a distinct Commercial Court – an institution once disbanded in favour of folding its duties into broader civil judiciary.
Act No. IV of 2026, which will come into force once the Minister for Justice gives notice in the government gazette, is a major change for Malta’s legal system. By updating the Code of Organisation and Civil Procedure (COCP) and the Commercial Code, the legislator has made the Commercial Court an independent court which stands alongside the Civil Court, Court of Appeal, and Constitutional Courts.
This change is not just a simple name update from the old “Commercial Section”. It is a smart step designed to handle the growing challenges of international business and shows Malta’s commitment to being a leading center for maritime, financial, and digital trade in the Mediterranean.
Amendments to the Code of Organization and Civil Procedure (COCP)
The scope of the new court’s jurisdiction, defined under the newly added Article 32A to the COCP, is particularly telling of the Act’s strategic importance. It consolidates a wide range of specialised sectors, including merchant shipping, intellectual property, competition law, and pre-insolvency matters, under one roof.
Amendments to the Commercial Code
While the COCP establishes the court’s existence, the amendments to the Commercial Code ensure that the terminology and authority of the law reflect this new reality. The Act systematically replaces references to the “Civil Court, First Hall” or the “Civil Court (Commercial Section)” with the “Commercial Court” throughout the Commercial Code.
These changes will be important in matters of corporate governance and trade regulation. For instance, amendments to Articles 9 and 12 of the Commercial Code transfer the authority to authorise minors to trade or to handle interdicted persons’ commercial interests directly to the Commercial Court. This will ensure that the same specialised eye overseeing large-scale corporate litigation are also supervising the entry points into the commercial world.
Moreover, the Act updates the registration and penalty mechanisms. Under Article 38, the Commercial Court is now the sole authority responsible for the registers of traders, including those residing in Gozo. By centralising the authority to fix penalties, as seen in amendments to Article 37, the Commercial Code now recognises the Commercial Court as the singular guardian of trade integrity in Malta. This eliminates the historical “civil-commercial” overlap that often led to procedural confusion by practitioners.
A Seamless Transition for the Business Community
To ensure a smooth launch for the Commercial Court, the Act introduces clear transition rules. The new court will immediately take charge of all fresh cases, while any ongoing matters from the previous Commercial Section will be seamlessly transferred to its jurisdiction. To safeguard ongoing litigation, cases already set for judgment or final submissions in other civil courts will not be re-assigned. This approach prioritizes efficiency and continuity for businesses navigating the Maltese legal system.
Once Act No. IV of 2026 takes effect, changes across both procedural and substantive codes are expected to deliver a comprehensive upgrade to Malta’s legal landscape. The reforms promise more than a simple rebranding; they aim to establish the Commercial Court as a robust, specialised institution, equipped to handle the complexities of modern commerce and support the demands of a jurisdiction that is also a business hub.
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