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This article forms part of a series exploring key procedures and rights under the Companies Act (Chapter 386 of the Laws of Malta) in the context of company liquidation. While not every step requires a direct court application, creditors and other stakeholders still play an active role in shaping the process.
Once a company is placed into liquidation by a court order, the Official Receiver is automatically appointed as the liquidator. However, this appointment is not necessarily permanent.
Under Article 229(4) of the Companies Act, creditors holding at least one-fourth in value of the company’s debt may formally request the Official Receiver to convene a meeting of creditors. The purpose of this meeting is to allow creditors to vote on whether to appoint a different person as liquidator in place of the Official Receiver.
This provision offers creditors a level of control, particularly if they prefer a liquidator with specific industry experience, or where a more hands-on approach is needed for asset recovery or investigations.
Where no person is nominated as liquidator by either the creditors or the contributories at the relevant meetings, Article 230(4) allows the Official Receiver to apply to the court to appoint a liquidator. This ensures the liquidation process continues with court oversight, even if no consensus is reached among the stakeholders.
Although the request by creditors to the liquidator is not itself a court application, it forms part of the court-supervised liquidation process. Any replacement liquidator appointed would still require legal recognition.
Simply put, creditors are not passive observers in liquidation. Article 229(4) gives them a clear legal mechanism to request a meeting and potentially appoint a new liquidator, and where no one is nominated, Article 230(4) ensures the court may still step in to appoint one.
This article forms part of our ongoing series on court actions under the Maltese Companies Act. You can explore other related topics like:
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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