Commercial use of Maltese trusts : the way forward

Abstract

This thesis tackles the subject matter in broadly three ways. Firstly, the evolution of trust concept, within the ambit of developments in the legislative, cultural and regulatory framework, is clearly explained. This is an essential re-run over familiar ground but is done concisely and easily within the attention span of a non-legal historian. Secondly, having dealt with the fundamentals, modem trusts are explained in terms of an ever-renewing commercial reality considering issues central to the nature and role of a trust and the way it has responded and evolved. At this stage, the appropriateness and benefits of the use of trusts and trustees in a commercial environment shall be identified. Finally, in what is most likely to be the more far-reaching part of this presentation, a review, at more length, of potential development the of the Maltese trusts used in a variety of commercial contexts, given the proposed overhaul to the Maltese trusts legislation, shall be carried out. Clearly, this will by no means be exhaustive. In so doing, an attempt is made to illustrate some known advantages of and limitations to a number of commercial goals which can be achieved using the trust vehicle in today's evolving business and commercial reality, offering greater security to investors and others. To achieve this, an outline of the non-legal considerations of the commercial transactions involved is essential and for ease of discussion the commercial transactions will be discussed also within a Maltese regulatory and legislative framework. The overall aim of this dissertation is therefore, to make a clear case for supporting the use of the trust as a continuing versatile arrangement which, into the 21st Century is developing further as an important tool at the heart of many a commercial transaction.