The voluntary dissolution of a Malta company is a significant legal process that should not be underestimated. It requires a thorough thought process, previous year compliance obligations to be met, and strict adherence to legal obligations. Failure to do so will result in serious consequences for the directors, shareholders and liquidator alike, especially if the liquidator is not vigilant in the manner in which the liquidator's role and responsibilities are carried out.
The dissolution of a company involves preparing and filing several legal documents, including a declaration of solvency, i.e. a prerequisite in the event of a members' voluntary dissolution. Proper planning from an accounting, income tax, procedural and regulatory perspective is required.
A common pitfall that is frequently overlooked is that once a company is placed into liquidation, legal and judicial representation shifts from the company’s directors to the liquidator who therefore takes control of the company's affairs. Disregarding this can result in serious ramifications.
In summary, a vigilant liquidator ensures a smooth and lawful liquidation process, safeguarding the interests of all parties while preventing legal, financial and income tax repercussions as well as personal risk.
