On 11 May 2020, the Malta Financial Services Authority (“Authority”) issued a number of directives to Solv International 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 48(2)(a) of the Trusts and Trustees 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 SOLV International Ltd and Mr Karl Schranz resigns from all positions in SOLV International Ltd previously approved by the Authority, or unless the Authority allows otherwise, SOLV International Ltd is directed to:
- 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 SOLV International Ltd be dissolved and consequently wound up by the court where:
- The number of shareholders of SOLV International Ltd is reduced to one and remains so reduced for more than six months, unless Solv International Ltd is a single member company specified in article 212(3) of the Companies Act; or
- The number of directors of SOLV International Ltd is reduced to below the minimum prescribed by article 137 of the Companies Act and remains so reduced for more than six months;
Provided that the coming into effect of the above directives is subject to such conditions as imposed by the Authority in its decision of the 11 May 2020.