/library/oar/handle/123456789/1893 2025-11-06T02:40:30Z 2025-11-06T02:40:30Z /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 /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 /library/oar/handle/123456789/139100 2025-09-18T10:51:42Z 2025-01-01T00:00:00Z

Title: The impact of regulations on AI in investment services : a comparison between the US and the EU Abstract: Artificial Intelligence (AI) is becoming an increasingly more popular tool within investment services. In fact, the use of AI has begun to alter many processes within investment firms. Traditional models are being replaced with more effective, efficient, and precise models. It has become important in areas such as regulatory compliance, anti-money laundering, customer services and support, algorithmic trading and portfolio management. However, the use of these programs also brings with it several ethical considerations and risks that need to be considered. Questions in data protection and cyber security, AI bias, accountability and liability, oversight, disclosure, and knowledge need to be addressed. After all, AI can be just as dangerous as it can be helpful. Regulation needs to be set-up by jurisdictions across the world to protect investors and the financial stability of the world. The dissertation addresses these developments in three ways. Firstly, it highlights the impact AI has had in reshaping the management of investment services. Secondly, it outlines the impact of regulation on AI in investment services. Finally, it compares the approaches taken by the European Union and the United States of America in their attempt at regulating AI in investment services. Ultimately, as AI becomes a more impactful tool within financial services, legislation needs to address any risks that may arise. Certain checks and balances need to be put in place to ensure that trustworthy AI is being developed. The AI Act has planted the seeds of regulation. However, it does not address the risk AI may bring to an investment firm. When addressing these risks, it is important that regulation is proactive and not reactive, balancing the need for innovation and development, while ensuring a trustworthy and secure financial system. Description: M.A. Fin. Serv.(Melit.)

2025-01-01T00:00:00Z /library/oar/handle/123456789/139088 2025-09-18T09:11:19Z 2025-01-01T00:00:00Z

Title: The application of consumer behaviour analysis in regulating disclosure requirements for insurance-based investment products in the European Union Abstract: The purpose of this thesis is to examine and criticise the extent to which legislators and financial regulators utilise consumer behaviour analysis in the application of disclosures for insurance-based investment products across the European Union. This research outlines the key disclosures found in the legislative framework related to the distribution of insurance-based investment products. It further explores how financial decision making can be made through mental heuristics along with the tools that can be used to capture such subconscious information. By then analysing case studies, this study concludes that the application of consumer behaviour in the creation of disclosures for insurance-based investment products is sorely limited. The benefits of consumer behaviour analysis are drawn from similar sectors and on this basis a proposal is made to ensure that human heuristics are considered by legislators and regulators to build more effective disclosure regimes. The study discusses that since the subconscious, natural reactions that consumers have to information dissemination are being largely ignored, despite a wider acknowledgement of the importance of considering mental heuristics, disclosures are not fulfilling their goals. This study provides legislators and regulators with a substantiated recommendation to establish disclosure requirements on unbiased, information gathered through neurophysiological tools. Description: M.A. Fin. Serv.(Melit.)

2025-01-01T00:00:00Z