No Liquidation Committee? Here’s How A Shareholder Can Step In

This article forms part of a series exploring key procedures and rights under the Companies Act (Chapter 386 of the Laws of Malta) in the context of company liquidation. While not every step requires a direct court application, creditors and other stakeholders still play an active role in shaping the process.

When a company is being wound up by the court, a liquidation committee may be appointed to oversee and support the liquidator’s work. This committee is typically made up of creditors and is meant to safeguard the interests of those with a stake in the company’s remaining assets.

But what happens if creditors fail to appoint one?

Under Article 246(2) of the Companies Act, a contributory (i.e., a shareholder) may be empowered to act. If the meeting of creditors does not appoint a liquidation committee, the meeting of contributories may nominate one of their own to file a court application, requesting an order for the liquidator to summon another creditor’s meeting for the