S.L. 403.15 Art. 9Commencement of winding up proceedings in Malta.

(1) Without prejudice to article 28(1) of the Act, a decision concerning the dissolution and winding up of a Maltese insurance undertaking, including its branches in host Member States, shall only be taken by the relevant authorities in Malta:

Provided that, the decision to dissolve and wind-up a Maltese insurance undertaking, including its branches in host Member States, may be taken in the absence, or following the adoption of reorganisation measures.

(2) Where the relevant authority is not the competent authority, the relevant authorities shall, upon receipt of an application for winding up proceedings, inform the competent authority regarding this request in order to obtain its views on the adoption of such measures and the practical effect which they may have.

(3) Where the court takes a decision concerning the dissolution and consequential winding up with respect to a Maltese insurance undertaking, including its branches established in any Member State or EEA State, which includes an order or appointment of -

(a) a winding up order under article 219 of the Companies

Act; or

(b) the appointment of a provisional administrator under article 228 of the Companies Act;

it shall immediately inform the competent authority, or cause the competent authority to be informed without delay of the decision, order or appointment which has been made.

(4) Where an arrangement has been concluded pursuant to article 291 of the Companies Act, any person appointed by the Maltese insurance undertaking or creditors shall inform the competent authority of the arrangement which has been approved.

(5) Where a liquidator is appointed in a creditor’s voluntary winding-up as mentioned in article 230 of the Companies Act, the liquidator shall inform the competent authority of his appointment.

(6) Without prejudice to article 42 of the Act, where in the case of a member’s voluntary winding up, a liquidator is appointed in terms of article 270 of the Companies Act, the liquidator shall inform the competent authority of his appointment; and in addition, where the provisions of article 272 of the Companies Act apply, the liquidator shall inform the competent authority that he is of the opinion that the Maltese insurance undertaking will not be able to pay its debts within the period stated in the declaration of solvency.

(7) For the avoidance of doubt, where the competent authority issues an order for the dissolution and winding up in terms of article 28 of the Act, any disposition of the property of the company or any other act which would otherwise require the written approval of the competent authority in terms of the Act, made after the date of the said order, shall be void, unless the competent authority otherwise approves in writing.

(8) Where the competent authority is informed of a decision, order or appointment in accordance with sub-regulations (3) to (6), the competent authority shall in turn, without delay and by any means available inform the foreign authority in all Member States or EEA States -

(a) that a decision, order or appointment has been made, and

(b) the possible effects of a decision, order or appointment of that kind on -

(i) the business of the Maltese insurance undertaking, and

(ii) the rights of policyholders under contract of insurance effected and carried out by the Maltese insurance undertaking.

(9) A decision concerning the dissolution and winding up of a Maltese insurance undertaking, including its branches in host Member States, adopted in accordance with the Companies Act or the Act, as applicable, shall be recognised in other Member States or EEA States without any further formalities, and shall be effective as soon as the decision is effective in Malta.

(10) Nothing contained in these regulations shall prejudice the powers of the competent authority in relation to winding up proceedings with respect to a Maltese insurance undertaking, including its branches established in host Member States, where provided for in the Act.