https://www.um.edu.mt/library/oar/handle/123456789/118816 2026-07-31T23:28:50Z 2026-07-31T23:28:50Z https://www.um.edu.mt/library/oar/handle/123456789/139133 2025-09-22T09:00:05Z 2024-01-01T00:00:00Z

Title: The two sides of the capital maintenance rules : creditor protection and company sustainability Abstract: All major jurisdictions have laws protecting creditors' interests in cases of default or corporate insolvency. The Limited Liability Act of 1855 was a momentous legislative measure passed by the Parliament of the United Kingdom. Its objective was to promote corporate investment by restricting investors' liability. This event represented a crucial turning point in the development of corporation law, significantly influencing the environment for business and investment in the future. Since the establishment of limited liability companies, creditors who offer financial backing to incorporated entities have faced substantial risk. In this specific business context, lawmakers bear the responsibility of creating a conducive environment for commercial ventures. This involves protecting debt financiers to a degree that encourages their participation, among other duties. The legal capital regime is a corporate legal instrument that has traditionally been used to safeguard the interests of creditors. This regime consists of two components: (i) the distribution rule and (ii) the minimum capital rule. The distribution rule, also known as the capital maintenance rule, forbids the repayment of capital to investors and restricts a firm from distributing dividends or making payments to repurchase or redeem shares, unless in specific circumstances. The minimum capital regulation mandates that individuals who incorporate or register a business organisation must contribute assets with a value equal to or more than the stipulated minimum amount to the corporate asset pool. The laws primarily aim to safeguard the interests of creditors, while also addressing any disputes between creditors and opportunistic shareholders about the distribution of corporate funds. This thesis aims to discuss the legal background of capital maintenance doctrine and to argue why the antiquated rules do not serve their purpose with respect to creditor protection but rather serve as a costly and rigid structure deterring businesses from following better opportunities that would serve a wider audience. Alternative means of creditor protection will also be discussed. The thesis also aims to discuss the perspectives of creditors and shareholders regarding the capital maintenance doctrine and their expectations. Creditors expect comprehensive and timely settlements of their claims, but should one assume that all shareholders want is a distribution policy based on short-term vision or do they rather seek an increase in the value of the company and of their worth? The subject of Corporate Governance and Company Sustainability is a very important topic as it steers companies away from short-term results to ones that will reap benefits to wider audiences and last longer, promoting the going concern of companies. Description: M.A. Fin. Serv.(Melit.)

2024-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/139101 2025-09-18T10:55:15Z 2024-01-01T00:00:00Z

Title: A critical examination of the preventive restructuring framework introduced by the Pre-insolvency Act, 2022 Abstract: The main focus of this study is the viability of the preventive restructuring framework established by the Pre-Insolvency Act (‘PIA’) as a proactive alternative to traditional insolvency proceedings and its potential impact on corporate economic recovery, particularly in the post-COVID-19 era. The principal discussion analysed the relationship between the ‘old’ framework under the Companies Act and the new framework introduced by the PIA. A comparative analysis with other jurisdictions, including a detailed exploration of insolvency and restructuring frameworks, offered some salient points of comparison and emerged promising aspects and challenges. While the PIA framework demonstrates potential feasibility in providing distressed companies with options to restructure debts and sustain business operations, concerns linger regarding its affordability, sustainability, stakeholder acceptance, and scalability. These aspects are crucial for the framework's success, necessitating ongoing dialogue, collaboration, and stakeholder engagement. Addressing these challenges requires investment in administrative capacity, digital infrastructure, and specialised training programs tailored to legal professionals and restructuring experts. Innovative funding mechanisms, such as public-private partnerships and venture capital investments, can alleviate financial constraints and promote greater participation in restructuring proceedings. Regular evaluation and monitoring of the framework's performance, coupled with impact assessments and stakeholder feedback, are imperative for iterative improvements and alignment with broader economic recovery objectives. The study also explored the hypothesis that increased regulation, particularly for entities operating in regulated markets, could mitigate factors contributing to corporate insolvency. By integrating enhanced regulation with pre-insolvency frameworks, companies could receive vital support and infrastructure necessary for sustainable business operations. Ultimately, while Malta's pre-insolvency framework offers a promising alternative to traditional mechanisms, attention to these critical areas is essential to maximise its efficacy. Description: M.A. Fin. Serv.(Melit.)

2024-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/127561 2024-10-14T09:18:03Z 2024-01-01T00:00:00Z

Title: The Impact of DORA with special focus on Maltese payment service providers Abstract: The European Commission prioritised making Europe suitable for the digital age by building a future-ready economy. The Digital Operational Resilience Act (DORA) bolsters a new digital finance strategy to ensure that the EU epitomises the digital revolution and drives it with ingenious European firms in the lead. The regulation covers a range of financial institutions that are regulated at EU level to guarantee consistency among the Information and communication Technology (ICT) risk-management requirements that are pertinent to the financial sector. The DORA has been ratified by the European Parliament in November 2022 and entered into force in January 2023. Its main objective is to consolidate and upgrade ICT risk requirements throughout the financial sector that all participants of the financial system are subject to a common set of standards to alleviate ICT risks. Moreover, the regulation increases requirements on ICT risk management and ICT-related incident reporting which are more stringent than the Network and Information Security Directive. The regulation is based on five core pillars setting out an extensive range of legislative requirements across ICT risk management and operational resilience. The first pillar is ICT risk management and sets out the objective for financial institutions to create an ICT risk management framework around a set of key principles and requirements. The second pillar is that incident reporting with the main objective being to harmonise ICT incident classification and reporting. The third pillar is based on setting out digital operational resilience testing with the objective to have harmonisation of standards across the EU for digital operational resilience testing. The fourth pillar focuses on ICT third-party risk. The fifth pillar is that of critical Third-Party oversight which creates a direct oversight framework for critical third-party providers. The objective of this dissertation is to delve into the aims, impact, implications and improvements of DORA and cover the key obligations under this new regulation which is directly applicable to all Member States of the Union. The research will have a mixed approach of both qualitative and quantitative research. Firstly, the researcher will delve into the implication and developments that DORA introduces in the financial services sector. Additionally, the research will take a mixed approach by collecting data by means of a questionnaire from Payment Service Providers licensed by the MFSA, in order to help the researcher, determine difficulties and challenges, if any, when implementing the Regulation in the institution’s respective policies and procedures. Description: M.A. Fin. Serv.(Melit.)

2024-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/119770 2024-03-13T08:40:02Z 2024-01-01T00:00:00Z

Title: Anti-money laundering and counter financing terrorism regulation and supervision in Egypt and Malta : a comparative analysis Abstract: The purpose of implementing the Anti-Money Laundering and Counter Financing Terrorism (AML/CFT) regulations is to safeguard the economy. The financial market integrity can be adversely affected by both money laundering and the financing of terrorism, leading to negative impacts on a country's financial, economic, and political environment. The objective of the dissertation is to compare the regulatory and supervisory frameworks that apply to AML/CFT in Egypt and Malta. Malta and Egypt have many similarities. They are both Mediterranean countries with a rich history of multiple civilizations, making them desirable tourist destinations. Both countries were under British rule and gained independence during the same period - Egypt in 1956, while Malta gained independence in 1964. Over the last two decades, both countries have faced numerous challenges, particularly in their pursuit for financial growth through tourism and financial services. The dissertation aims to determine whether the AML/CFT regulations in Malta, an EU Member State that follows the EU AML/CFT laws, are more effective than those in Egypt, a third country with stricter AML/CFT regulations due to repeated terrorist activities. The study will conduct a comparative analysis of both jurisdictions' AML/CFT regulatory and supervisory framework, with a specific focus on the substantive regulation and supervisory regime. Description: M.A. Fin. Serv.(Melit.)

2024-01-01T00:00:00Z