Cap. 403 Art. 42Dissolution and winding up of an authorised undertaking carrying on long term business.

(1) An authorised undertaking whose head office is in Malta, carrying on long term business may not be dissolved and consequently wound up voluntarily without the consent of the competent authority.

(2) It shall be the duty of an authorised undertaking and the directors thereof, to notify the competent authority forthwith upon becoming aware of any measures to be taken in terms of sub-article (1).

(3) Without prejudice to the provisions contained in article 41, in the event of an undertaking as aforesaid being dissolved and wound up -

(a) the assets representing the technical provisions maintained by the undertaking in respect of its long term business shall be available only for meeting the liabilities of the undertaking attributable to that business;

(b) the other assets of the undertaking shall be available only for meeting the liabilities of the undertaking attributable to its other business.

(4) Where the value of the assets mentioned in either paragraph

(a) or (b) of sub-article (3) exceeds the amount of the liabilities mentioned in either paragraph, the restriction imposed by that sub-article shall not apply to so much of those assets as represents the excess.