Non-cash consideration for allotment of shares
Act XVII of 2025 was enacted which brought a number of changes to the Maltese Companies Act
One of the changes relates to the issue of shares in exchange for a non-cash consideration. Prior to the change in law, an expert’s report was always required to assess the value of such in-kind consideration. Under the new provisions, where the non-cash consideration does not exceed €50,000, a declaration by the directors of the company will now suffice.
While the legislation does not specify the exact content of the declaration, it is expected to mirror those typically found in an expert’s report. Just like the case with the expert’s report, this declaration must still be filed with the Malta Business Registry (“MBR”) before the shares are issued or allotted.
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