Malta Family Business Act launched as a White Paper

News

Malta Family Business Act launched as a White Paper

On the 21th of October 2015 the Malta Family Business Act White Paper has been launched by the Ministry for Economy, Investment and Small Business. MAFE has been lobbying for and putting forward proposals for the formulation of a legislative framework that will assist family businesses and their advisers in planning and the preparation for the transition of the business from one generation to the next.

The Malta Family Business Act White Paper is a milestone and will be placing Malta to become the first EU member state to adopt such legislation.

What the Act seems to be striving for is to establish and understand and propose legislation that takes into consideration the existing family dynamics taking place within family businesses, provide guidance, solutions and incentives for family businesses to become better organised through proper family and business governance. This seems to be the direction that the Malta Family Business Act (FBA) is striving to establish according to the latest presentations by Minister Dr. Chris Cardona and Dr. Nadine Sant, Chairperson of the FBA Committee. This approach is what is making this Act totally different from any other piece of legislation within the EU and other developed countries.

Some of the conspicuous points that this legislation will strive to clarify are: Who is considered “family” for the objective of this legislation? Who can become a shareholder for the business to remain a family business? How are owners to be represented on the Board? How will the different classes of shares be looked upon by this legislation? What are the exit rules for existing shareholders and other important considerations? This is a very long and complex list to manage. Once the Malta Family Business Act White Paper has been published, MAFE is embarking on the process of gathering feedback so that we will be in a better position to forward our recommendations to Governments.

You can view the White Paper here: Malta Family Business Act White Paper

We look forward to your comments and feedback.

Recent Publications

Publication
Wealth Management: A comprehensive way to transfer Family Wealth

Family governance establishment will practically minimise failures in wealth transmission. Family...

Publication
Challenges that Families in Business and HNWF face

A tool for family wealth and succession planning which considers wealth protection, internal...

Publication
Conflict Issues in Family Businesses

Conflict issues in family businesses usually arise through internal conflicts @ miscommunication....

  •  
  •