On the 31st of January, 2023, the Directive (EU)
2019/2121 of the European Parliament and of the Council of 27
November 2019 amending Directive (EU) 2017/1132 as regards
cross-border conversions, mergers, and divisions (hereinafter
referred to as the ‘Mobility
Directive') was officially transposed into Maltese
law with direct effect.
Before the coming into force of the Mobility Directive, the
freedom of establishment of limited liability companies, a right
encompassed within Articles 49 and 54 of the Treaty on
the Functioning of the European Union, was largely dependent on the
applicable laws within Member States' national laws, thereby
leading to inconsistency and legal uncertainty. By forming a
harmonised legal framework applicable to all Member States within
the sphere of cross-border movement of limited liability companies,
in particular cross-border divisions and conversions, the Mobility
Directive aims at improving cross-border mobility for companies
