Dissolution and consequential winding up, is a critical process in the life cycle of a company, marking its transition from active business operations into a state of liquidation eventually sealed by complete closure. Under Maltese law, the dissolution of companies is primarily governed by the Companies Act (Chapter 386 of the Laws of Malta, the “Act”), which provides a structured framework to ensure that the process is conducted fairly and efficiently.

In its judgment on the 23 January 2023, the First Hall Civil Court (Commercial Section) (hereinafter the “Court”) presided by Mr. Justice Ian Spiteri Bailey delved into the salient features of a request made to the court for the dissolution and winding up of a company by a creditor or creditors of such company by means of an application in terms of Article 218(1) of the Companies Act, Chapter 386 of the Laws of Malta (the “Act”).