On 11 May 2020, the Malta Financial Services Authority (“Authority”) has issued a number of directives to RES Malta Ltd. as a consequence of the regulatory action taken against Dr. Christian Ellul and Mr. Karl Schranz on the 8 May 2020. In terms of article 11 of the Company Service Providers Act and article 16(2)(b) of the Malta Financial Services Authority Act, the Authority has decided that:
1. Until Mr Karl Schranz and Dr Christian Ellul divest themselves of all the qualifying shareholding which they hold, whether directly or indirectly, in RES Malta Ltd and Mr Schranz resigns from all positions in RES Malta Ltd previously approved by the Authority, or unless the Authority allows otherwise, RES Malta Ltd is directed to, with immediate effect:
- Refrain from onboarding new clients; and
- Refrain from providing existing clients with any new and, or additional services which it is licensed or otherwise authorised to provide other than the services that it is already providing to any such client as at the date of this letter; and
2. Resolve by extraordinary resolution, in terms of article 214(1)(a) of the Companies Act, that RES Malta Ltd be dissolved and consequently wound up by the court where:
- The number of shareholders of RES Malta Ltd is reduced to one and remains so reduced for more than six months, unless RES Malta Ltd is a single member company specified in article 212(3) of the Companies Act; or
- The number of directors of RES Malta Ltd is reduced to below the minimum prescribed by article 137 of the Companies Act and remains so reduced for more than six months.