The preparatory work on the Family Business Act has been completed and the white paper will be published soon, Economy Minister Chris Cardona said today. Malta will be the first EU member state to have a law specifically aimed at regulating family businesses.

Addressing a business breakfast organised by the Gozo Chamber of Commerce and the Economy Ministry, Dr Cardona said this was one of the most innovative laws ever devised in Malta.

The aim of the Act is to address the obstacles and problems family businesses might face, escpecially when the owners decide to transfer their business to other family members or down generations. Dr Cardona said the government felt the need to draft this law seeing that around 75% of Maltese businesses are family owned. Most of them are passed from down to the second generation but only 30% of these manage to survive. Less than 10% make it to the third generation. The law will also include a clear definition of family business, thus avoiding abuse.