Novel interpretations of the Companies Act through Maltese judgements

Abstract

Both locally and on the international plane, the corporate form of the company is becoming increasingly popular and plays a key role within the existing economies. This has in turn resulted in a greater need for regulation through company law to prevent abuse. The primary source of company law in the Maltese jurisdiction is the Companies Act 1995, Chapter 386 of the Laws of Malta. Despite being wide-ranging, covering several different areas of the sector, it is nevertheless impeded by a number of lacunae which the local Courts have addressed over time, developing an established position on the matters. Initially, this research paper shall touch upon the concept of the company as a business model and its regulation in the Maltese legal system, identifying its scope and sources. This shall be subsequently followed by an identification and analysis of the lacunae enshrined within Chapter 386, particularly those pertaining to Article 402, that is, the unfair prejudice remedy. By referring to numerous judgements and the legislation itself, together with other pertinent sources, the research will give a holistic overview of how the position of the Maltese Courts in their respect has developed over time. Given the mixed nature of the Maltese legal system, legislation and interpretations of foreign jurisdictions also play a crucial role in this regard and thus, weight shall also be given to the approaches, judgements and leading sources of comparable foreign jurisdictions in relation to the legal matters at hand.