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What happens to Court Cases once a Company is ordered into Liquidation? Corporate and M&ALitigation & Dispute Resolution

What happens to Court Cases once a Company is ordered into Liquidation?

Companies Act (Chapter 386 of the Laws of Malta). Each article gives a practical overview of a specific legal remedy or procedure involving court supervision; outlining when it applies, the steps required and the purpose behind it. It is intended as a useful reference point rather than an in-depth academic analysis. Once a company is officially placed into liquidation by a court order, any ongoing court cases involving the company, whether filed by it or against it, may no longer proceed in the usual way. Under the Companies Act, no legal proceedings may be continued or commenced against the company…
Can a Legal Action be Paused Once a Company is Being Wound Up? Litigation & Dispute Resolution

Can a Legal Action be Paused Once a Company is Being Wound Up?

This article is part of a series exploring court actions available under the Companies Act (Chapter 386 of the Laws of Malta). Each article gives a practical overview of a specific legal remedy or procedure involving court supervision; outlining when it applies, the steps required, and the purpose behind it. It is intended as a useful reference point rather than an in-depth academic analysis. When a winding up application is filed before the Maltese courts, the company in question does not instantly enter liquidation. However, certain legal protections may immediately come into play, including the possibility of pausing other court…
Court of Appeal Upholds Insurers’ Freedom to Select Their Risks Insurance & ReinsuranceLitigation & Dispute Resolution

Court of Appeal Upholds Insurers’ Freedom to Select Their Risks

In the case of Joseph Psaila vs Argus Insurance Company (Europe) Ltd  decided on the 26th of March 2026, the Court of Appeal confirmed that insurers may, at their own discretion, decide which risks and clients they wish to accept. Joseph Psaila, a taxi driver licensed to operate Y-plate vehicles, owned two cars: a Toyota and a Peugeot . At the time proceedings were initiated before the First Hall of the Civil Court, the Toyota was still insured, while the Peugeot’s policy had already expired. Both vehicles had previously been insured with Argus Insurance Company (Europe) Ltd (‘Argus’). Psaila alleged…
A New Era for Commercial Disputes: Malta Revives the Commercial Court Litigation & Dispute Resolution

A New Era for Commercial Disputes: Malta Revives the Commercial Court

Malta has taken a significant step towards a more specialised framework for commercial dispute resolution with the enactment of Act No. IV of 2026 on 17 March 2026, formally paving the way for the re-establishment of a dedicated Commercial Court. This marks an important development in the handling of complex business disputes. The Commercial Court will form part of the superior courts and will be presided over by a single judge. It shall be given broad jurisdiction over commercial matters, including disputes arising under the Commercial Code, the Companies Act and the Competition Act, as well as cases concerning merchant…
Is court involvement needed to wind up a company? If so, when and why? Corporate and M&ALitigation & Dispute Resolution

Is court involvement needed to wind up a company? If so, when and why?

This article is the first of a series exploring court actions available under the Companies Act (Chapter 386 of the Laws of Malta). Each article gives a practical overview of a specific legal remedy or procedure involving court supervision; outlining when it applies, the steps required and the purpose behind it. It is intended as a useful reference point rather than an in-depth academic analysis. Introduction While there are various grounds upon which a company may be dissolved, dissolution has traditionally involved some form of court supervision, whether voluntary or compulsory, with limited exceptions. Article 214 of the Companies Act,…
Judgement on the Right to Enforce a Promise of Sale Agreement Litigation & Dispute ResolutionReal Estate & Construction

Judgement on the Right to Enforce a Promise of Sale Agreement

In a judgement delivered on the 5th December 2025 having application number 1187/2023(HM), the Civil Court, First Hall affirmed that for a contracting party to enforce a  promise of sale agreement and invoke the right of action as contemplated under the Civil Code, Chapter 16 of the Laws of Malta, that party must be in a position to appear on the final deed of sale. The right of action for the enforcement of a promise of sale agreement features in Article 1357(2) of the Civil Code, which  provides that, “The effect of such promise shall cease on the lapse of…