CONTROLLED COMPANIES (PROCEDURE FOR LIQUIDATION)   [ CAP. 383.        1
CHAPTER 383
CONTROLLED COMPANIES 
(PROCEDURE FOR LIQUIDATION) ACT
To make provision for the liquidation and the distribution of assets
belonging to controlled entities.
8th November, 1995
ACT XVII of 1995 as amended by Acts XXIV of 1995, IX of 1997, VI of
2001 and XVII of 2002. 
Short title. 
(Procedure for Liquidation) Act.
Definitions.
Amended by:
XVII. 2002.228.
Cap. 204.
2. In this Act, unless the context otherwise requires -
"Central Bank" means the Central Bank of Malta established by
the Central Bank of Malta Act;
Cap. 371.
"competent authority" means the competent authority nominated
by the Minister under and for the purposes of the Banking Act;
Cap. 215.
Cap. 371.
"controlled asset" means and includes a bank or other credit
institution, property, partnership, firm or other business in respect
of which the Minister, in terms of article 18 of the Banking Act * , or
the competent authority in terms of article 29 of the Banking Act,
has appointed a person or persons to assume control of the same;
Cap. 215.
Cap. 371.
"Controller" means a person appointed by the Minister in terms
of article 18 of the Banking Act †  or by the competent authority of
Malta in terms of article 29 of the Banking Act;
"Minister" means the Minister responsible for finance.
Application.
Amended by:
XVII. 2002.229.
Cap. 371.
3. (1) The provisions of this Act and of the Banking Act shall
apply to such controlled assets in relation to which the competent
authority after consultation with the Central Bank of Malta shall
have made an order for liquidation under this Act.
(2) In making an order for liquidation the competent authority
after consultation with the Central Bank of Malta may direct that
any controlled assets may, for the purpose of liquidation under this
Act, be treated as one entity.
Claims against a 
controlled asset.
Amended by:
XVII. 2002.229.
4. (1) Whenever the competent authority after consultation
with the Central Bank of Malta makes an order for the liquidation
of a controlled asset, the Controller shall proceed by notice
published in the Gazette to call upon all creditors who may have a
claim against or upon the controlled asset to make such claim with
him within three months from the date of such notice. The
Controller shall, together with such notice, publish a list of
creditors who are recognised by him as having a valid claim against
the controlled asset, as well as the amount due by the controlled
asset on such claim.
*Repealed by Act XV of 1994.  See  the Banking Act  ( Chapter 371 ) .
  2  CAP. 383. ]   CONTROLLED COMPANIES (PROCEDURE FOR LIQUIDATION)  
(2) Any person failing to make his claim within the said period
shall be barred from bringing forward his claim and any such claim
shall not be taken into account by the Controller in the liquidation
and distribution scheme of the controlled asset:
Provided that a creditor whose claim has been recognised
by the Controller in terms of this article need not bring forward his
claim within the said period.
(3) The Controller shall, on the lapse of the period mentioned
in subarticle (1), publish in the Gazette a comprehensive list of all
the claims made to or recognised by him.
(4) Any person having an interest in the liquidation or
distribution scheme of a controlled asset may, within one month
from the publication of the list mentioned in subarticle (3), make
objection to any claim recognised by the Controller or brought
forward in terms of this article.
Procedure to be 
adopted.
5. (1) The Controller shall proceed to determine any claims
and objections made, to wind up and liquidate any controlled asset,
to appoint an independent auditor to audit his accounts, and to draw
up a scheme of distribution and make a report thereof to the
Minister.
(2) An extract of the report by the Controller showing the
creditors recognised by him as having a valid claim against the
controlled asset, the amount due on such claim, and any right of
preference attaching to such claims, shall be published by the
Controller in the Gazette.
(3) In making the report and drawing up the scheme of
distribution, the Controller shall determine the date as from which
the controlled asset was insolvent.
Cap. 371.
Cap. 13.
(4) Notwithstanding the provisions of article 29(3)( d ) of the
Banking Act, the provisions of article 485 of the Commercial Code
shall apply  mutatis mutandis  to a controlled asset:
Provided that the provisions of the said article shall not
apply to any act done by the Controller or under his authority. 
(5) Where any act has been made or omitted to be made by a
controlled asset, or by the owner, director or manager of such asset,
which results in the fraudulent deprivation of the rights of the
creditors of such a controlled asset, the Controller shall be entitled,
as the case may be, to ignore the act so made or to deem the act as
having been made despite the omission to make such act.
(6) The Controller shall in drawing up the scheme of
distribution, proceed to rank creditors having pledges, privileges or
hypotecs in accordance with the law for the time being in force at
the time of distribution:
Provided that any pledge or privilege, arising, created or
registered after the date established by the Controller in terms of
subarticle (3), shall be ineffectual unless such pledge or privilege
was created by the Controller:
Provided further that the fees and expenses incurred by the
CONTROLLED COMPANIES (PROCEDURE FOR LIQUIDATION)   [ CAP. 383.        3
Controller in the administration, control and liquidation of any
controlled asset shall be ranked prior to any other claim
whatsoever.
Right of appeal by 
aggrieved party.
6. (1) Any person who feels aggrieved by the report and
scheme of distribution made by the Controller shall have a right to
appeal to the Appeals Board constituted under this Act by an
application made within a period of one month from the date of
publication in the Gazette of the extract of the report mentioned in
article 5.
(2) Within one month from the publication of the extract of the
report and scheme of distribution mentioned in article 5, the
Controller shall refer the said report and scheme of distribution to
the Appeals Board for its approval or variation.
Appeals Board.
Board to be styled the Appeals Board which shall consist of a
Chairman and two other members appointed by the Minister.
(2) The members of the Board shall, before entering upon their
office, take before the Attorney General the oath to examine and
decide any matter referred to them with equity and impartiality.
(3) The Chairman shall be an advocate with a minimum of
twelve years legal practice.
(4) The two other members mentioned in subarticle (1) shall be
persons who in the opinion of the Minister, possess the necessary
expertise and experience in banking or financial services.
(5) The members of the Board shall be appointed for such
period that the Minister may establish in their letter of
appointment, which period shall not exceed three years, and may
only be removed by the Minister on the advice of the Commission
for the Administration of Justice on the grounds of proved inability
to perform the functions of their office whether arising from
infirmity of body or mind or any other cause, or proved
misbehaviour.
Power of the 
Board. 
Cap. 12.
8. (1) The Board shall have all such powers as are by the
Code of Organization and Civil Procedure vested in the Civil
Court, First Hall.
(2) Any warrant or order issued by the Board shall be signed by
the Chairman and certified by the Registrar.
(3) The enforcement of the decisions of the Board in the
manner prescribed in the Code of Organization and Civil Procedure
shall be decided by the Chairman of the Board.
(4) The decisions of the Board shall have the force of executive
titles.
Sittings and 
registry of the 
Board.
Amended by:
IX. 1997.6.
9. (1) The Board shall, unless the Minister by order otherwise
directs, hold its sittings in the edifice of the Courts of Malta, and
the registry of the superior courts shall be the registry of the Board.
(2) The Minister may appoint a Secretary to the Board for such
  4  CAP. 383. ]   CONTROLLED COMPANIES (PROCEDURE FOR LIQUIDATION)  
period as the Minister may establish in the Secretary’s letter of
appointment, which.period shall not exceed three years.
(3) The Secretary shall perform all functions which are vested at
law in the Registrar of Courts.
Jurisdiction of the 
Board.
10. (1) The Board shall have the sole and exclusive
jurisdiction to hear and determine:
( a ) any appeal made from any determination of any claim
by the Controller;
( b ) any claim made by the Controller against a third party
including any claim for the delivery of any property
held by third persons;
( c ) any matter related to, or arising from, the report and
scheme of distribution published by the Controller;
( d ) any claim made against any Controller arising in
whatsoever manner from the administration and
liquidation of any assets under his control.
(2) The Board shall also have the sole and exclusive
jurisdiction to enforce any decision made by it as well as any
judgment delivered by a competent court in Malta against the
Controller.
Decisions of the 
Board.
11. (1) The decisions of the Board shall be delivered in open
Court.
(2) The decisions of the Board shall be taken by a majority of
votes.
Appeal on points 
of law.
Amended by:
VI. 2001.28.
12. (1) The decisions of the Board shall be final except with
respect to points of law decided by the Board from which an appeal
shall lie to the Court of Appeal.
(2) An appeal under this article shall be by application to the
Court of Appeal filed within fifteen days from the day of the
decision of the Board.
(3) The Minister responsible for justice may by regulations
under this subarticle establish fees relative to the filing of judicial
acts in the registry of the court in connection with  appeals to the
Court of Appeal under this Act: 
Cap. 12.
Provided that until such time as regulations are so made by
the Minister, the fees contained in Schedule A  to the Code of
Organization and Civil Procedure shall apply.
(4) The board established under article 29 of the  Code of
Organization and Civil Procedure may make Rules of Court
governing appeals to the Court of Appeal under this Act.
Pending claims.
Amended by:
XXIV. 1995.362.
13. All cases and claims pending before the Civil Court, First
Hall, and being cases and claims against the Controller of a
controlled asset in respect of which an order for liquidation under
this Act has been made, shall be transferred to the Appeals Board
and shall continue to be heard and determined by such Board:
CONTROLLED COMPANIES (PROCEDURE FOR LIQUIDATION)   [ CAP. 383.        5
Provided that nothing contained in this Act shall detract
from the jurisdiction of the Court of Appeal to continue to hear any
case pending before it:
Provided further than the Controller shall have the power to
refer any matter to arbitration under such terms and conditions as
he may deem fit, and any matter so referred, as well as any matter
referred to arbitration prior to the coming into force of this Act,
shall be heard and decided by and in accordance with the terms of
reference to arbitration notwithstanding the provisions of this Act.
Liquidation and 
distribution of 
assets.
14. Upon the finalization of all appeals and upon the decision
of the Board of the reference made to it of the scheme of
distribution, the Controller shall proceed to liquidate and distribute
the assets under his control in accordance with his scheme of
distribution as amended or approved, as the case may be, by the
Board.
Striking off of 
name and company 
or partnership. 
Cap. 168. 
15. (1) The Controller shall also, in accordance with article
161 of the Commercial Partnerships Ordinance *  or any other
provision of any other law substituting the said Ordinance, deliver
to the Registrar for registration by him a notice of such approval,
and the Registrar shall thereupon strike the name of the company or
partnership off the register.
(2) The Controller shall, together with the aforesaid notice,
deliver the books and other documents of the company to the
Registrar, who shall keep them for a period of ten years from the
date at which the name of the company or partnership was struck
off the register.
Legal immunity.
Cap. 371.
16. No action shall lie against the Controller, the Appeals
Board or the Government for anything done under the authority of
this Act or of the Banking Act and this article shall apply from the
date of appointment of the Controller even if that date happens to
be before the date of the coming into force of this Act.
Waiver of tax or 
fiscal liability.
17. The Minister may by order waive any tax or fiscal liability,
or part thereof, due by a controlled asset in respect of which an
order for liquidation has been made.
Minister may make 
regulations.
Added by:
IX. 1997.6.
18. The Minister may make regulations not inconsistent with
any of the provisions of this Act for the carrying out of the
provisions of this Act.
*Repealed by Act XXV of 1995  ( Chapter 386 ) .
