Malta Business Registry penalties must be clear enough and satisfy the requisites set out in law
January 16, 2025
In Marco Aquilina u Euro Concrete Blocks Limited (C 16202) v. Ir-Reġistratur tal-Kumpaniji, decided by Mr Chief Justice Mark Chetcuti, Mr Justice Robert G. Mangion and Mr Justice Grazio Mercieca (Court of Appeal) on 3 September 2024, the Court agreed with the judgement of the first court and rejected the appeal of the respondent the Registrar of Companies (Registrar) within the Malta Business Registry (MBR) as the Registrar failed to give a clear explanation and breakdown of the amounts of the penalties in the penalties notice and the judicial letter, thus prejudicing the rights of the applicants to properly contest such penalties.
Facts of the Case
The applicant Marco Aquilina had been appointed as a director of the company Euro Concrete Blocks Limited (Company) on 11 May 2011 (Marco Aquilina and the Company are hereinafter together referred to as the Applicants). The Company had been registered with the MBR since 28 April 1994. On 5 November 2021, the Registrar sent a letter to Marco Aquilina (but not to the Company too) titled “Final Warning”, with the subject being “Re. Euro Concrete Blocks Limited – penalties due under the Companies Act, Chapter 386 of the Laws of Malta”. This letter called upon the director to settle the total sum of Euro 16,553.75 representing the indicated penalties, and stated that unless such amount was settled within seven days from the date of the letter, the Registrar shall institute judicial proceedings against him, including the filing of warrants for the recovery of such penalties, without further notice. On 20 January 2022, the Registrar then presented a judicial letter against the Applicants, annexing to it the payment notification, and calling upon them to settle within seven days the indicated amount, as...
To read the rest of the article, please visit the following link: https://ganado.com/insights/publications/malta-business-registry-penalties-must-be-clear-enough-and-satisfy-the-requisites-set-out-in-law/
Author: Stephanie J. Coppini, Associate
Facts of the Case
The applicant Marco Aquilina had been appointed as a director of the company Euro Concrete Blocks Limited (Company) on 11 May 2011 (Marco Aquilina and the Company are hereinafter together referred to as the Applicants). The Company had been registered with the MBR since 28 April 1994. On 5 November 2021, the Registrar sent a letter to Marco Aquilina (but not to the Company too) titled “Final Warning”, with the subject being “Re. Euro Concrete Blocks Limited – penalties due under the Companies Act, Chapter 386 of the Laws of Malta”. This letter called upon the director to settle the total sum of Euro 16,553.75 representing the indicated penalties, and stated that unless such amount was settled within seven days from the date of the letter, the Registrar shall institute judicial proceedings against him, including the filing of warrants for the recovery of such penalties, without further notice. On 20 January 2022, the Registrar then presented a judicial letter against the Applicants, annexing to it the payment notification, and calling upon them to settle within seven days the indicated amount, as...
To read the rest of the article, please visit the following link: https://ganado.com/insights/publications/malta-business-registry-penalties-must-be-clear-enough-and-satisfy-the-requisites-set-out-in-law/
Author: Stephanie J. Coppini, Associate