On November 15, 2024, the Insolvency and Receivership Service, a
part of the Malta Business Registry, unveiled a new self-evaluation insolvency tool. This tool is
designed to give businesses preliminary resources to assess their
own financial health and viability.
Proactive Warning Tools
The self-evaluation insolvency tool is part of the proactive
warning tools referred to in Article 3 of the Pre-Insolvency Act
(Chapter 631 of the Laws of Malta). The Act's objective is to
equip companies and their representatives with the means to
identify situations that could lead to a probability of
insolvency.
Directors' Responsibilities
The Pre-Insolvency Act, which has been in effect for nearly two
years, places a proactive responsibility on a company's
directors. If they become aware of a potential insolvency, they are
required to convene a directors' meeting within 30 days to
assess the company's situation and decide on the necessary
actions to address the issue.
