ACT No. XXII of 2007 AN ACT to regulate voluntary organisations and their administration BE IT ENACTED by the President, by and with the advice and consent of the House of Representatives, in this present Parliament assembled, and by the authority of the same, as follows>-

I assent.

E DWARD F ENECH A DAMI

(L.S.)

President

16th October, 2007

ACT No. XXII of 2007

AN ACT to regulate voluntary organisations and their administration

BE IT ENACTED by the President, by and with the advice and

consent of the House of Representatives, in this present Parliament

assembled, and by the authority of the same, as follows>-

PART I

PRELIMINARY

(1) The short title of this Act is the Voluntary Organisations Short title and

commencement.

Act, 2007.

(2) This Act shall come into force on such date as the

Minister responsible for social policy may by notice in the Gazette

appoint, and different dates may be so appointed for different purposes

and for different provisions of this Act.

(1) In this Act, unless the context otherwise requires>

Definitions.

“administrator” means any person who is appointed to control,

supervise or administer an organisation, and includes a governor,

director, trustee or committee member or any other person who

carries out such functions even if under another name but shall not

include a manager or an executive while carrying out functions

under a contract against remuneration except in so far as he is an

administrator and only relating to his functions as an administrator<

“Board of Appeal” means the board established in terms of

article 23 or such other administrative board or tribunal which the

Minister may from time to time designate to carry out all or any of

the functions as are stated in this Act<

“charitable purpose” means a social purpose<

“charitable trust” means a trust as defined by the Trusts and

Trustees Act which is established for a social purpose<

“the Commissioner” means the person appointed by virtue of

article 5<

“controlled by the Government” means that the Government

of Malta has the power, whether directly or indirectly, to nominate,

appoint, change or remove the majority of the administrators of an

organisation<

“the Council” means the Council for the Voluntary Sector

established by article 35<

“the Minister” means the Minister responsible for social

policy<

“non-profit making” is used in respect of an organisation

where>

(a) the statute of the organisation contains an express

exclusion of the purpose to make profits< and

(b) there is express provision in the statute defining

the purposes of the organisation which do not include the

promotion of private interests, other than a private interest

which is a social purpose< and

(c) no part of the income, capital or property is

available directly or indirectly to any promoter, founder,

member, administrator, donor or any other private interest>

Provided that if a promoter, founder, member,

administrator or donor is another enrolled non-profit making

organisation, the limitation in paragraph (c) shall not apply

provided the availability of such income, capital or property

is subject to conditions which are consistent with the general

purposes of the grantor organisation>

Provided further that an organisation shall continue to

be deemed as non-profit making notwithstanding that>

(i) it obtains a pecuniary gain from its activities

when such gain is not received or credited to its members

but is exclusively utilised for its established purposes<

(ii) it buys or sells or otherwise deals in goods or

services where such activities are exclusively related to

its principal purposes<

(iii) it is established for the general entertainment,

pastime, education or other similar benefit only of its

members< or

(iv) it is established for the promotion of the social

role, ethics, education and values of a trade or profession

provided it does not promote the private interests of its

members<

“philanthropic” means for the relief of poverty, pain and

suffering, and other humanitarian needs<

“pious foundation” shall have the meaning assigned to it by

article 6 of the Second Schedule to the Civil Code<

“promoter” means a person who promotes the establishment

of an organisation or holds himself out to third parties as such<

“public collection” shall have the meaning ascribed to it in

the Public Collections Act>

Provided that for the purposes of this Act, the term “public”,

within the context of collections, shall not include existing founders,

members or donors of a voluntary organisation, even if in large

numbers, nor shall it include a group of less than fifty persons

taken on one or more occasions<

“Registrar for Legal Persons” means the Registrar responsible

for registration of organisations in terms of the Second Schedule

to the Civil Code<

“social purpose” means any charitable or philanthropic

purpose, and without prejudice to the generality of the aforesaid,

includes>

(a) the advancement of education, including physical

education and sports<

(b) the advancement of religion<

(c)

the advancement of health<

(d) social and community advancement<

(e) the advancement of culture, arts and national

heritage<

(f) the advancement of environmental protection and

improvement, including the protection of animals<

(g) the promotion of human rights, conflict resolution,

democracy and reconciliation<

(h) the promotion or protection of the interests of other

social purpose organisations, including federations of such

organisations< or

(i) any other purpose as may be prescribed by the

Minister by means of regulations made by virtue of this Act<

“statute” means the constitutive instrument of an organisation

and includes a will which provides for the setting up of such

organisation<

“temporary organisation” means an organisation established

for a specific purpose which can be achieved within less than a

year as provided by article 16<

“voluntary” in the context of a voluntary organisation means

the existence of one or more of the following elements>

(a) the overall control of the organisation is exercised

by administrators who do not receive any remuneration for

their services for carrying on functions of administrators

except as hereunder permitted<

(b) the organisation is created by the endowment of

voluntary and gratuitous grants and the organisation’s affairs

are supported, at least in part, by such voluntary or gratuitous

grants or by services rendered on a voluntary basis<

(c) subject to limitations due to the nature or size of

the organisation and subject to any discretion which may be

exercised in terms of the statute of an organisation by the

administrators or a membership committee, any person can

join the organisation or participate in the activities of the

organisation< and

(d) every participant in the organisation has the right

to freely leave the organisation>

Provided that>

(i) unless the statute provides otherwise,

administrators may receive a reasonable honorarium for

services rendered insofar as the payment of such

honorarium does not materially prejudice the

achievement of the purposes of the voluntary

organisation<

(ii) the remuneration of persons who are

employed to carry out management, executive or fund-

raising functions in a voluntary organisation shall not

be such as to materially prejudice the achievement of

the purposes of the voluntary organisation< and

(iii) the organisation may refund reasonable

expenses to administrators, managers, executives,

volunteers and other persons supporting the purposes of

the organisation<

“voluntary organisation” means a foundation, a trust, an

association of persons or a temporary organisation which is

independent and autononmous and which qualifies under article

“Voluntary Organisations Fund” means the foundation

established by article 37<

“voluntary sector” includes voluntary organisations,

volunteers, donors who make voluntary grants of money or assets

to voluntary organisations, beneficiaries of the services of

volunteers and voluntary organisations and administrators of such

organisations<

“volunteer” means a person who provides unremunerated

services through or for a voluntary organisation.

(2) Unless otherwise expressly defined in any other law or

the context requires otherwise, the terms “charity”, “charitable”, “non-

profit”, “non-profit making”, “philanthropic”, “social purpose”,

“voluntary”, “voluntary organisation” and variations or derivatives

thereof when used in other laws, shall have the meaning ascribed to

them by this Act.

(3) The registration of a voluntary organisation as a legal

person in terms of the Second Schedule to the Civil Code shall not

imply enrolment of that organisation in terms of this Act.

(4) Enrolment of a voluntary organisation under this Act

shall not imply>

(a)

that the organisation has legal personality< or

(b) that it is a registered organisation, in terms of the Second

Schedule to the Civil Code< or

(c) that the liability of its administrators under applicable

laws is affected in any manner.

PART II

VOLUNTARY ORGANISATIONS

(1) A voluntary organisation is an organisation which is

created or established>

(a)

for any lawful purpose<

(b) as non-profit making< and

(c)

is voluntary,

whether it is registered or registrable as a legal person or not in terms of

the Second Schedule to the Civil Code and whether it is enrolled in

terms of this Act or not.

(2) Voluntary organisations are independent and

autonomous of the Government and such organisations shall have their

status respected by the Government at all times.

(3) Organisations, including trusts, which are controlled by

the State shall be regulated by article 39.

(4) For the purposes of this Act, a voluntary organisation

may not be established as a limited liability company or any commercial

partnership established under the Companies Act.

(5) Trusts established or recognised in terms of the Trusts

and Trustees Act shall qualify as voluntary organisations only when Cap. 331.

they are established as charitable trusts.

(1) Any voluntary organisation may apply to become Privileges of

enrolled with the Commissioner and, once enrolled and subject to the voluntary

organisations.

observance of applicable provisions of law, may enjoy the privileges

contemplated by this Act and any regulations made thereunder.

(2) Notwithstanding the provisions of any other law, a

voluntary organisation which is enrolled in terms of this Act, may make

public collections without any further authorisation.

(3) Any public collections shall be made in accordance with

applicable law or guidelines which may be issued by the Commissioner

from time to time.

(4) An enrolled organisation may>

(a) receive or be the beneficiary of grants, sponsorships or

other financial aid from the Government, any entity controlled by

the Government or the Voluntary Organisations Fund<

(b) be the beneficiary of any policies supporting voluntary

action as these may be developed by the Government<

(c) receive or be the beneficiary of exemptions, privileges

or other entitlements in terms of any law<

(d) be a party to contracts and other engagements, whether

against remuneration or not, for the carrying out of services for

the achievement of its social purpose at the request of the

Government or any entity controlled by the Government>

Provided that the prior written consent of the Minister is

required if the Government, or any entity controlled by the

Government, intends to carry out any act involving actions in

paragraphs (a), (b) and (d) in relation to any voluntary organisation

which is not enrolled in terms of this Act, failing which the actions

shall be subject to revocation notwithstanding their terms>

Provided further that where a law or regulations, or a

Ministerial exemption or notice pursuant thereto, in force on the

date of the coming into force of this Act grants a benefit, exemption

or privilege, it shall continue to be enjoyed until it is repealed and

where a contract or engagement is already in force on such date it

shall not be affected until it is performed or terminated.

(5) The following voluntary organisations shall be entitled

to enjoy the privileges under this Act although not enrolled in terms of

this Act>

(a) international voluntary organisations established by

international treaty which are exempted by any special law from

being subject to registration<

(b) any voluntary organisations which are declared by the

Minister by regulations made by virtue of this Act, after

consultation with the Council, as being entitled to the privileges

under this Act.

(6) The following organisations shall be enrolled by means

of the notification procedure in terms of article 13>

(a) pious foundations regulated by the relevant religious

authority< or

(b) voluntary organisations which are registered in terms

of a law which provides for a regulator for such organisations and

their activities< or

(c) voluntary organisations which are members of a

federation or association of organisations which has been approved

by the Commissioner as being able to regulate its members to a

standard acceptable to the Commissioner and which, if itself a

voluntary organisation, is enrolled in terms of this Act>

Provided that such notification procedure shall not be available

to such organisations referred to in this sub-article if they receive

fifty per cent or more of their annual income through grants,

donations, sponsorships or other financial aid from>

(i) members of the public, through public collections<

or

(ii) private organisations, through public collections<

or

(iii) the Government or entities controlled by the

Government< or

(iv) other social purpose or non-profit making

organisations.

(7) The Government, government departments, public

agencies and entities controlled by the Government shall act upon a

Certificate of Enrolment issued in terms of article 14, as evidence of

the status of an organisation as a voluntary organisation and shall not

require any further evidence of its existence or status when dealing

with such an organisation>

Provided that such certificate shall not imply any exemption

of such organisation from any procedure, duty, obligation, liability, fees

or dues unless expressly stated in the applicable law, regulation or policy.

PART III

COMMISSIONER FOR VOLUNTARY ORGANISATIONS

(1) There shall be a Commissioner for Voluntary Appointment of

Commissioner.

Organisations who shall be appointed by the Minister for the purpose,

after consultation with the Social Affairs Committee of the House of

Representatives or any other committee substituting the same.

(2) The Commissioner shall be appointed for a period of

three years and may be re-appointed upon the expiration of the term of

office.

(3) A person shall not be qualified to be appointed or

continue to hold office as Commissioner if such person>

(a) is a Judge, a Magistrate, a Member of the House of

Representatives or a Local Council, or a candidate for election to

the House of Representatives or a Local Council< or

(b) is legally incapacitated or interdicted< or

(c) has been declared bankrupt or has made a composition

or arrangement with his creditors< or

(d) has been convicted of a crime affecting public trust or

theft or fraud, or of knowingly receiving property, obtained by

theft or fraud, a crime affecting the good order of the family or of

an offence against this Act.

(4) Where the person appointed as Commissioner>

(a) is not an employee of the Government before such

appointment, his engagement shall not render him a public officer<

or

(b) is prior to such appointment a public officer, such person

shall continue to retain his employment with the Government>

Provided that during his term as Commissioner, such person

shall not hold any position which results in a conflict of interest or

is incompatible with the correct performance of his official duties

as Commissioner or with the impartiality expected from this office

or with public confidence therein.

(5) When the office of the Commissioner becomes vacant,

a person appointed as Commissioner shall hold office until a successor

is appointed.

(6) Subject to the qualifications in sub-article (3), the

Minister may, at any time, during the absence of the Commissioner or

for any other temporary purpose where the Minister considers it

necessary to do so, appoint a person to act in the office of the

Commissioner, until the resumption of office of the Commissioner.

(7) The Minister may also appoint one or more Deputy

Commissioners to assist the Commissioner as directed by him and in

the performance of his functions.

(1) The Commissioner may, at any time, be removed or

suspended from office by the Minister, after consultation with the Social

Affairs Committee of the House of Representatives or any committee

substituting the same, on the grounds of proved inability to perform the

functions of the office of the Commissioner or proved misbehaviour>

Provided that if the committee referred to in this sub-article

is not constituted or if the House of Representatives is not in session,

the Commissioner may be suspended from office by the Minister, acting

in accordance with his own discretion, for proved inability to perform

the functions of the office or proved misbehaviour to the Minister’s

satisfaction but any such suspension shall not continue in force beyond

two months after the Committee has been constituted and the House of

Representatives is in session.

(2) The Commissioner may, at any time, resign from office

by notice in writing addressed to the Minister.

(1) The Commissioner shall perform the duties and exercise Functions

Commissioner.

the functions imposed and conferred on him by this Act and by any

regulations made thereunder including>

(a) providing enrolment facilities for organisations which

are eligible for enrolment in terms of this Act<

(b) monitoring the activities of voluntary organisations in

order to ensure observance of the provisions of this Act and any

regulations made thereunder<

(c) providing voluntary organisations with information

about the benefits and responsibilities deriving from registration

as legal persons in terms of the Second Schedule to the Civil Code Cap. 16.

and enrolment in terms of this Act<

(d) providing information and guidelines to persons

performing voluntary work and to members of voluntary

organisations, for the better performance of their role and for the

better achievement of the objectives of the voluntary organisations

in which they serve<

(e) making recommendations to the Minister on legislation

and policies in support of voluntary organisations, volunteers and

voluntary work<

(f) assisting Government, government departments, public

agencies and entities controlled by the Government in preparing

and reviewing policies in support of voluntary organisations and

the voluntary sector in general<

(g) investigating any complaints relating to voluntary

organisations or persons or organisations purporting to be voluntary

organisations and their activities, and to take such action as is in

his power to redress any justified grievance that may come to his

notice<

(h) monitoring the promotion of voluntary organisations and

the behaviour of administrators of such organisations to ensure

the observance of high standards of accountability and transparency

and compliance with law<

(i) co-ordinating and communicating with the Registrar for

Legal Persons in terms of the Second Schedule to the Civil Code Cap. 16.

with a view to facilitating registration and enrolment processes

for voluntary organisations<

(j) co-operating with and supporting the Council to develop

policies which will be of benefit to the voluntary sector in general

or categories thereof<

(k) performing any other function or duty that is assigned

to him under this Act and any regulations made thereunder as well

as such other functions as may be assigned to him under any other

law.

(2) In the exercise of his functions, the Commissioner shall

act impartially and shall not be subject to the direction of any other

person or authority.

(3) Notwithstanding the provisions of sub-article (2), for

the purpose of deciding on the refusal of an application for enrolment

in accordance with article 13, the Commissioner shall prior to making

such decision, seek the recommendation of the sub-committee of the

Council appointed in terms of article 35 and shall act accordingly.

(4) The provisions of article 72 of the Financial

Administration and Audit Act shall not apply to the Commissioner or

any other person carrying out his functions in terms of this Act.

(1) The Commissioner shall establish systems for

communication with, and in support of, volunteers who are citizens of

Malta, whether serving in Malta or abroad, and the Minister may make

regulations, as may be appropriate from time to time, to regulate and

support volunteers.

(2) The Commissioner shall seek to encourage an

environment where the credibility and good reputation of the voluntary

sector is continually enhanced through high standards of operation of

voluntary organisations and their administrators, of transparency and

public awareness and of proper accountability.

(3) Subject to the provisions of the Data Protection Act, the

Commissioner shall, for the purposes of this Act, also compile and

maintain information relating to the administrators and activities of

voluntary organisations which are not enrolled in terms of this Act.

The Commissioner shall be guided by the following general

principles>

(a) the recognition, encouragement and promotion of the

value and importance of voluntary action and voluntary

organisations, whether operating independently of government

institutions or in a supporting role, and the benefit deriving to the

social and cultural life in Malta<

(b) the recognition of the contribution of voluntary action

and voluntary organisations, as expressions of participation,

solidarity, pluralism and subsidiarity, towards the continued

enjoyment and enrichment of democratic life in Malta<

(c) the recognition of the direct economic benefit of

voluntary and unremunerated action and of initiatives taken by

voluntary organisations and volunteers<

(d) the recognition of the importance of the co-ordinatioin

of efforts by voluntary organisations with similar purposes so as

to achieve greater concentration of resources and to achieve the

benefits of economies of scale and for the avoidance of duplication

of efforts, always in the interests of their beneficiaries< and

(e) the recognition of the importance of the creation of

federations or associations of members in order to regulate member

organisations and their activities to achieve the benefits of self

regulation in the voluntary sector.

(1) The Commissioner shall, by not later than six weeks Annual report.

after the end of each calendar year, make and present to the Minister an

annual report which shall include>

(a) a report of the Commissioner’s activities during the

preceding year<

(b) a general description of the circumstances of the

voluntary sector in Malta and any developments which may have

affected such sector<

(c) any recommendations regarding legislation, policies or

other matters affecting the voluntary sector< and

(d) the accounts and other financial records referred to in

sub-article (3).

(2) The Minister shall, by not later than eight weeks after

presentation of a copy of every such report, or if at any time during that

period the House of Representatives is not in session, within eight weeks

from the beginning of the next following session, cause a copy of every

such report to be laid on the table of the House of Representatives. This

report shall be discussed by the Social Affairs Committee of the House

of Representatives or any other committee substituting this Committee

by not later than eight weeks from the date when the Minister places

the same report on the table of the House.

(3) The Commissioner shall cause to be kept proper accounts

and other financial records in respect of the operations of his office,

and shall cause to be prepared a statement of accounts in respect of

each financial year. The accounts of the Office of the Commissioner

shall be audited by an auditor to be approved by the Minister. After the

end of each financial year, and not later than the date on which the

report in sub-article (1) is to be forwarded to the Minister, the

Commissioner shall cause a copy of the statement of accounts duly

audited to be transmitted to the Minister together with a copy of any

report made by the auditors on that statement or on the accounts of the

Office of the Commissioner.

(1) The Commissioner may publish, by advertisement or

otherwise, any information about a voluntary organisation, whether

enrolled in terms of this Act or not, or about any person purporting to

act on behalf of a voluntary organisation, when it appears to him to be

in the interest of the public or of the organisation itself.

(2) Before publishing any information referred to in sub-

article (1), the Commissioner shall, in writing, notify the administrators

of the organisation, or the person purporting to act as stated in sub-

article (1), with the proposed text and the recipient shall have five days

from the date of receipt of such notice to discuss the same with the

Commissioner>

Provided that unless an agreement is reached between the

Commissioner and the recipient on any remedial action as may be

required to be taken in the circumstances, either party may apply to the

Board of Appeal to confirm, amend or refuse the proposed

advertisement, as the case may be, and the decision of the Board of

Appeal shall be final.

(3) In cases which, in the opinion of the Commissioner, are

urgent or involve fraud, the Commissioner may apply directly to the

Board of Appeal requesting authorisation to publish such statement or

information and the Commissioner shall notify the persons involved

with the application and the recipient shall have two working days from

the date of receipt of the application to respond to the Board of Appeal,

after which the Board shall issue a final order.

(4) No action shall lie against the Commissioner or any Deputy

Commissioners in terms of the Press Act for the issuing of bona fide Cap. 248.

public statements in terms of this article.

PART IV

REGISTER OF VOLUNTARY ORGANISATIONS

(1) There shall be a Register of Voluntary Organisations Register of

Voluntary

(hereinafter referred to as “the Register”) which shall be maintained by Organisations.

the Commissioner and shall contain the following information, supported

by the documentation referred to in paragraphs (f) to (i) as the same

may be amended or updated from time to time>

(a)

the name of the organisation<

(b) the address of the organisation<

(c) the registration number of the organisation if registered

as a legal person, whether in Malta or abroad<

(d) the names and addresses of the administrators of the

organisation<

(e) in case of foreign or international organisations, the name

and address of the representative resident in Malta of such

organisation<

(f) a copy of the constitutive deed of the organisation and

any amendments thereto<

(g) a copy of the annual accounts for the last financial year

prior to enrolment, if any, prepared by the applicant<

(h) annual reports of the organisation<

(i) annual accounts of the organisation, together with a report

of reviewers or auditors as may be required under applicable law.

(2) Voluntary organisations shall be classified in the

Register according to their principal purpose or in such a manner as the

Commissioner may deem appropriate.

(3) On enrolment, the Commissioner shall allocate a unique

number to the voluntary organisation preceded by the letters “VO” and

that number shall at all times be quoted by the voluntary organisation

on any published materials, letters, notices, advertisements and other

documents issued by such organisation.

(1) Any voluntary organisation may apply for enrolment

by submitting the prescribed application form, to the Commissioner,

which form shall be accompanied by>

(a) an original or notarially authenticated copy of the

constitutive deed or statute of the organisation<

(b) the written consent of the administrators to hold office

after enrolment<

(c)

the enrolment fees, if any<

(d) in the case of those organisations requesting to be

enrolled through the notification procedure in terms of this article,

a certificate issued by the relevant regulatory body referred to in

article 4(7) confirming that the applicant is indeed subject to its

regulation and is in good standing< and

(e) any other document as required by this Act or by any

regulations made thereunder.

(2) In considering an application, the Commissioner may

request the applicant to provide further information about or make

representations on>

(a) the promoters, founders, administrators, donors and

beneficiaries<

(b) the assets and liabilities<

(c) the past, if any, present and intended activities of the

organisation<

(d) the purposes of the organisation and the intended

activities through which they are to be achieved< and

(e) any other matter on which the Commissioner may have

reservations or concerns in relation to the application.

(3) The Commissioner may accept or refuse any application

for enrolment on the basis of>

(a) observance or otherwise of all formalities required by

this Act and any regulations made thereunder<

(b) presence or otherwise of any factors which bar enrolment

under an express provision of this Act<

(c) the legality or otherwise of the proposed purposes of

the organisation having regard to the stated purposes of the

organisation and the stated intentions of the promoters relating to

its activities.

(4) The Commissioner shall>

(a) pay due regard to all information provided and

representations made, but in the event that the applicant fails to

provide any requested information or to make representations the

Commissioner shall proceed with the determination of the

application for enrolment on the basis of the information available

to him<

(b) determine whether the organisation is eligible for

enrolment and if the organisation is eligible for enrolment, the

classification of the organisation’s purposes<

(c) notify the applicant, in writing, of his determination, and

in case of a decision not to accept an application, the reasons for

such determination.

(5) The Commissioner shall seek to determine all

applications by not later than three months from the date of the

application and failure to so determine and notify the applicant in

accordance with sub-article (4) within such time shall be deemed to

mean that enrolment has been refused.

(6) The Commissioner shall not enrol a voluntary

organisation even if only one of the administrators is a person who

does not qualify to be an administrator of an organisation in terms of

applicable law.

(7) In considering applications from organisations to which

the provisions of article 4(7) apply, the Commissioner shall enrol the

applicant organisation on receipt of the documents required by sub-

article (1) without further review and shall follow such further

procedures, if any, as may be prescribed by regulations made by virtue

of this Act with reference to enrolment by notification.

(1) Upon being satisfied that the organisation is eligible

for enrolment in terms of this Act and is not in breach of the provisions

of this Act, the Commissioner shall>

(a) enter the particulars of the voluntary organisation in the

Register<

(b) issue a Certificate of Enrolment with the identification

number of the voluntary organisation<

(c) specify whether the voluntary organisation is a

foundation, an association, a trust or a temporary organisation<

and

(d) specify the voluntary organisation’s enrolment

classification.

(2) Certificates of Enrolment shall be deemed to be public

instruments and shall be surrendered to the Commissioner on his simple

demand in writing.

(3) The Certificate of Enrolment issued in terms of this

article shall not determine the fiscal status of a voluntary organisation

or the taxability or otherwise of its income and transactions.

The Commissioner shall refuse enrolment if, to the best of

his knowledge, the name of the organisation is already used by another

organisation, even if not enrolled, or if the proposed name is offensive

or is likely to deceive>

Provided that in the event that a voluntary organisation has been

enrolled with a name which is already used by another enrolled voluntary

organisation, the Commissioner shall request the voluntary organisation

which has been last enrolled to change its name.

(1) A voluntary organisation may be established as a

temporary organisation if it is an organisation formed with one specific

purpose, including the raising of funds for a specific social purpose or

for the benefit of another enrolled voluntary organisation, or the carrying

out of a particular task in support of a social purpose or of another

enrolled voluntary organisation. Such a temporary organisation shall

be treated as an unregistered organisation for the purposes of the Second

Schedule to the Civil Code.

(2) A temporary organisation>

(a) is established by means of a written constitutive

instrument, including a statement of intent to achieve a specific

purpose within a short time not exceeding one year, signed by the

promoters and listing the acts which are necessary to achieve the

purpose for which it is established<

(b) may not carry out any acts except those listed in the

constitutive instrument and may not borrow money or enter into

binding financial obligations in advance of raising the necessary

funds to perform such obligations<

(c) must pay out, apply or otherwise distribute all its assets

for the achievement of the purpose by the date of its expiration<

and

(d) must submit to the Commissioner a closing statement

of account prior to the date of its expiration signed by the

administrators>

(i) explaining how it has achieved the purpose for

which it was established<

(ii) explaining how it has applied all its assets< and

(iii) attaching thereto any original documents or

agreements which may have been entered into by such

temporary organisation in connection with the disposal or

application of such assets.

(3) Upon being satisfied of compliance with this article, the

Commissioner shall>

(a) enrol a temporary organisation on submission of the

relevant constitutive instrument< and

(b) cancel enrolment of such temporary organisation without

the need of winding up procedures on submission of the relevant

closing statement of account in terms of sub-article (2).

(4) The Commissioner may, on the written request of the

administrators, consent to an extension of the expiration date of a

temporary organisation which had been established for less than twelve

months and the duration, including the extension, shall not exceed a

total of one year from commencement.

(5) If a temporary organisation does not comply with sub-

article (2)(c), its administrators shall be obliged by no later than the

expiry date to>

(a) establish such organisation as a foundation or an

association in terms of the Second Schedule to the Civil Code and

apply to enrol it in terms of this Act< or

(b) pay all monies and other assets raised to the Voluntary

Organisations Fund to be applied to the purpose intended within

two months of the expiry date.

(6) Any residual assets which may remain in a temporary

organisation after the achievement of its purpose shall be paid by the

administrators to the Voluntary Organisations Fund and such Fund shall,

in virtue of this sub-article, be deemed to be the legal successor of all

property, including any rights of refund or reversion, of such temporary

organisation.

(7) The Voluntary Organisations Fund shall not be liable to

perform any obligations of any temporary organisation but if any assets

are received by such Fund in terms of this article and it appears to the

Board of such Fund that the obligations>

(a)

were entered into in good faith< and

(b) have not been performed other than for valid reasons< and

(c) may be performed in whole or in part with the assets

received,

then the Board of such Fund may agree to release any assets received,

without any interest and after deducting any expenses incurred, to the

creditor of the obligations but shall not be liable for anything further.

(8) If it appears to the Commissioner that a temporary

organisation has been set up regularly for the same or similar purpose

and by the same persons, or by some of them, then the Commissioner

may request that the administrators proceed to form a voluntary

organisation of extended duration in terms of law, failing which the

Commissioner may refuse to accept the enrolment of such temporary

organisation.

Any applicant whose application for enrolment has been

refused by the Commissioner shall have the right to appeal against such

decision to the Board of Appeal in terms of article 25.

(1) In carrying out his duties, the Commissioner may Organisations

difficulty.

recommend to the administrators, or in the absence of administrators,

to any identifiable members or promoters of the enrolled voluntary

organisation, the winding up of such organisation.

(2) On receiving a recommendation in terms of sub-article

(1), the recipients shall, as soon as practicable, call a meeting of all

interested persons to discuss such recommendation and take decisions

on the future course of action.

(3) The Commissioner may, on the written request of an

organisation which may be in financial difficulty, appoint external

administrators on a temporary basis in order to review the circumstances

and make recommendations on the future of such organisation.

(4) In the case of enrolled voluntary organisations, the

Commissioner shall seek to assist the organisation to implement

solutions or achieve compliance prior to issuing any recommendation

in accordance with this article, or prior to seeking an order in accordance

with articles 19 and 20.

(1) The Commissioner may apply to the Board of Appeal Suspension or

cancellation of

to order>

activities.

(a) the suspension of the activities of an enrolled voluntary

organisation by the issue of a Suspension Order, for such period

as shall be specified in such order< or

(b) the cancellation of the enrolment of a voluntary

organisation by the issue of a Cancellation Order, which shall come

into effect fifteen days from the date of notification of such order,

to all or any one of the administrators, unless an appeal is filed

prior to such period, in which case such order shall have effect

from the date established by the Board of Appeal.

(2) The orders referred to in sub-article (1) may be issued if

the voluntary organisation>

(a) is not pursuing the purposes for which it was established

and in so doing it is misleading the general public<

(b) is carrying out unlawful activities, including making

public collections without the necessary authorisation<

(c) is failing to comply with the provisions of its statute or

of this Act or any regulations made thereunder<

(d) is misapplying funds, or is using funds or benefits

received for purposes other than those for which such funds or

benefits were granted<

(e) appears to have continued operating after it has been

formally dissolved<

(f) has not functioned for a period which exceeds twenty-

four consecutive months<

(g) obtained enrolment on the basis of materially incorrect

or incomplete information that would have otherwise resulted in a

refusal had the correct or complete information been known to the

Commissioner.

(3) In those cases where a Suspension Order is issued, the

Board of Appeal shall indicate which of the activities of the organisation

are to be suspended and the Commissioner shall meet or communicate

with the administrators of the organisation, as soon as possible, to review

the situation and to obtain information and undertakings from the

administrators as necessary. Such information shall be referred to the

Board of Appeal, as may be required from time to time, and the Board

of Appeal may use such information when reviewing any orders issued

by virtue of this article.

(4) In a Suspension Order, the Board of Appeal may make

any ancillary orders, including an order to carry out any actions in

compliance with the statute of the voluntary organisation or the

provisions of this Act or any regulations made thereunder, as may be

appropriate.

(5) The Board of Appeal shall have the power to extend,

amend or revoke a Suspension Order, as it considers appropriate, on

the application of the Commissioner or the administrators of the

voluntary organisation.

(6) Until a Cancellation Order comes into effect in

accordance with sub-article (1), the affairs of the voluntary organisation

shall continue to be administered by the administrators who shall only

carry out acts of ordinary administration or, in case where an appeal is

pending, such acts as may be authorised by the Board of Appeal.

(7) In issuing a Cancellation Order the Board of Appeal

shall also determine whether any suspension of the activities of an

organisation is to become permanent in relation to all or part of the

activities of the organisation and may issue any relevant orders in relation

to the future operations of the organisation.

(8) In case of a Cancellation Order based on the grounds

specified in sub-article (2)(a), (b) and (d), the Board of Appeal shall

have the power to order the organisation to desist from carrying on any

further activities. In all other cases the Cancellation Order shall include

all determinations under such terms and conditions as the Board of

Appeal may consider appropriate in the circumstances and such order

shall not however imply a restriction of the right of association of any

persons involved in the organisation or of the right of said persons to

continue to operate the organisation without the continuing benefits of

enrolment under this Act.

(9) The Commissioner shall publish, in a local newspaper,

any Cancellation Orders which have become final with a brief statement

as to the effects of the order which shall, prior to publication, be approved

by the Board of Appeal and such statement shall be re-published

regularly for as long as the Commissioner may consider necessary to

ensure that the necessary public awareness has been achieved.

(1) In the event of cancellation of enrolment of a voluntary Effects of

organisation, the administrators shall forthwith surrender, to the cancellation

enrolment.

Commissioner, the Certificate of Enrolment of such organisation and

any person failing to surrender such certificate within the time stated in

the demand, in writing, by the Commissioner, shall be guilty of an

offence against this Act and shall be liable, on conviction, to a fine

(multa) of one hundred liri (Lm100) and a fine (multa) of five liri (Lm5)

for every day of default.

(2) In the event of cancellation of enrolment of a voluntary

organisation, all privileges, benefits, advantages or entitlements granted

to such organisation by virtue of enrolment, shall cease to have effect

from the date when the decision to cancel takes effect>

Provided that such loss of benefits shall not apply to the acts

required to liquidate and dissolve the voluntary organisation, including

any transfer of property to other organisations as required by the statute

of the voluntary organisation or the provisions of applicable law.

(3) Cancellation for the reasons mentioned in article

19(2)(a), (b), (d) and (g) shall entitle the Commissioner to demand the

refund of, or fair compensation for, any benefits unjustly received by

the voluntary organisation or any other person by virtue of its enrolment

in terms of this Act, and the Board of Appeal may issue the relative

orders against the organisation and any persons involved in such

organisation, or in possession of any property, in the Cancellation Order

or separately, after ensuring that such organisation or person has been

given due notice of this demand and an opportunity to defend itself or

himself>

Provided that there shall lie an appeal to the Court of Appeal

from any determination of liability by the Board of Appeal in terms of

this sub-article.

(4) An order of the Board of Appeal against an organisation

or a person referred to in the preceding sub-article shall be enforceable

as a judgment of the court.

(1) The Commissioner may, by written notice, order the

suspension of activities of an organisation which is not enrolled if, in

organisations which

his reasonable opinion, any of the grounds mentioned in article 19(2)

(b) and (d) apply and this for a period to be specified in a notice to all

or any one of the administrators, or in their absence to such person who

appears to the Commissioner to be carrying on such activities>

Provided that such suspension shall not exceed thirty days in

any one notice.

(2) An organisation which is served with such notice shall

suspend the activities which shall be specifically indicated in the notice

referred to in sub-article (1) until a final decision is taken as to whether

it may continue to act or otherwise.

(3) Any person failing to suspend activities within three days

from the receipt of the notice made to him by the Commissioner to that

effect, shall be guilty of an offence under this Act and shall be liable, on

conviction, to a fine (multa) of one hundred liri (Lm100) and a fine

(multa) of five liri (Lm5) for every day of default.

(4) The Commissioner shall apply to the Board of Appeal

by not later than ninety days should he consider it necessary to have an

order for the permanent suspension of activities by such organisation

and the Board of Appeal shall have the power, after hearing both parties,

to issue such order under such conditions as it considers appropriate.

(5) Any person aggrieved by a Suspension Order issued

under this article may appeal to the Board of Appeal against the issue

of such order within ten days of the receipt of the written notice from

the Commissioner.

(1) Without prejudice to the provisions of any other law, Powers

Commissioner in

in those cases where the Commissioner is of the opinion that a person case of abuse.

or voluntary organisation is making or has made abusive use of a

Certificate of Enrolment issued in terms of article 14 or has made or

made use of a forgery thereof, the Commissioner may>

(a) prohibit such person from using such certificate by giving

notice to such person in writing< or

(b) issue public statements on the facts to warn the public

about any abuse by the person or voluntary organisation< or

(c) apply to the Board of Appeal to take action to seize any

funds raised or public collections made by such person or

organisation and to return such funds to the donor thereof, or if it

is not possible to locate donors within six months from such seizure,

pay such funds into the Voluntary Organisations Fund.

(2) Prior to the taking of any of the actions referred to in

sub-article (1)(a) and (b), the Commissioner shall notify in writing any

person or organisation who appears to him prima facie to have abused

a certificate of his findings and of the actions he intends to take and

such person or organisation shall be entitled to>

(a) make submissions to the Commissioner within five days

from the date of receipt of the written notice< and

(b) file an appeal to the Board of Appeal within five days

of notification of the decision of the Commissioner, which appeal

shall suspend any action taken by the Commissioner in terms of

sub-article (1) until final determination by such Board of Appeal.

PART V

OF APPEALS AND THE BOARD OF APPEAL

(1) There shall be a Board of Appeal whose functions shall Board of Appeal.

be the determination of all matters relating to voluntary organisations

as are referred to it in terms of this Act.

(2) The members of the Board of Appeal shall be appointed

by the Minister, after consultation with the Council, for a period of

three years, and may be removed from office on grounds of proved

inability to perform the functions of their office or of proved

misbehaviour.

(3) The Board of Appeal shall consist of three persons, of

whom one member, who shall be the Chairperson, shall be a person

who has practiced as an advocate for not less than seven years.

(4) A member of the Board of Appeal may be challenged

or may abstain for any of the reasons for which a judge may be

challenged or may abstain in accordance with article 734 of the Code

of Organization and Civil Procedure. In any such case, the Minister

shall appoint another person to sit as a member of the Board of Appeal

in substitution of the said member.

(5) A person shall not be qualified to be appointed or

continue to hold office as a member of the Board of Appeal if such

person>

(a) is a Judge, a Magistrate, a member of the House of

Representatives or a Local Council, or a candidate for election to

the House of Representatives or a Local Council< or

(b) is legally incapacitated< or

(c) has been declared bankrupt or has made a composition

or arrangement with his creditors< or

(d) has been convicted of a crime affecting public trust or

theft or fraud, or of knowingly receiving property, obtained by

theft or fraud, a crime affecting the good order of the family or of

an offence against this Act.

(6) The Board of Appeal shall enjoy all the functions and

powers of the Civil Court in its voluntary jurisdiction.

(1) The Board of Appeal shall regulate its own procedure

and shall seek to introduce systems and practices which are expeditious

and efficient.

(2) The Board of Appeal shall have the power to take

decisions based on what appears to be just and fair in the circumstances

and shall have the power to issue orders, temporary or permanent.

(3) The Board of Appeal shall at all times observe the rules

of natural justice and shall provide the parties with an opportunity to

make submissions and be heard and shall afford them full access to all

information and documents on which such Board shall make its

determination.

(4) The members of the Board of Appeal shall act impartially

and independently of any influence of other persons and shall at no

time have any personal interest in matters which they are required to

determine. If any interest in an issue arises at any time they shall declare

such interest and abstain unless the parties expressly request them to

continue to act after full disclosure of such conflict.

(5) In the exercise of its functions, the Board of Appeal

may summon any person to appear before it, to give evidence and

produce any documentation and the Chairperson shall have the power

to administer the oath.

(6) The Board of Appeal shall decide any issue referred to

it by not later than four months from the date of the referral, unless in

the opinion of the Chairperson a longer period is necessary, for a valid

reason which must be stated and registered in the proceedings of the

case.

(7) The Board of Appeal shall have jurisdiction in relation

to any breach of the provisions of this Act or any regulations made

thereunder when such breach does not constitute a criminal offence.

PART VI

RIGHT OF APPEAL AND DISPUTE RESOLUTION

(1) Any person or organisation aggrieved by any decision Right of appeal.

of the Commissioner may appeal from the decision within thirty days

of receipt thereof or where there is no response to an application to the

Commissioner to enrol a voluntary organisation, after forty-five days

from the date of application for enrolment.

(2) Appeals shall be made in writing and shall be lodged

with the Board of Appeal without the need of any further formality or

shall be made in the manner as may be prescribed by regulations made

by the Minister by virtue of this Act.

(3) An application to the Board of Appeal may also be made

by the Commissioner, a founder, administrator, member, donor or

beneficiary of a voluntary organisation in his individual capacity having

an interest in the affairs of the voluntary organisation for an order on

the affairs of such organisation on the grounds that such organisation is

not being administered in accordance with this Act, any regulations

made thereunder or as provided in the statute of such organisation.

(4) The Board of Appeal shall give reasons for its decisions

and shall cause such decisions to be made public but the names of the

persons involved shall be omitted if such Board considers it appropriate

for reasons of privacy.

(5) In determining an appeal the Board of Appeal may

dismiss the appeal or annul, revoke or substitute the decision of the

Commissioner or any administrator or general meeting of a voluntary

organisation.

(1) There shall also lie an appeal to the First Hall, Civil

Court on a point of law and on any issue involving the determination of

a civil right which may arise as a result of a decision delivered by the

Board of Appeal.

(2) All appeals shall be made by application to the court,

which application shall be served on the Commissioner by the applicant

and the Commissioner shall have ten days to respond thereto.

(3) When an appeal on a point of law or a determination of

a civil right is made in accordance with sub-article (1), the court may

either confirm, modify or overturn the decision of the Board of Appeal

if it considers it necessary to do so in the light of its determination or it

may refer its decision back to the Board of Appeal for such Board to

take appropriate action.

(4) The decision of the First Hall, Civil Court shall be final

and no further appeal shall lie therefrom.

(5) Compliance with any instructions of the Commissioner

or with the Board of Appeal’s determination shall not be interpreted as

a renunciation of the right to seek judicial review in terms of this article.

(1) The Commissioner may, on becoming aware of a

dispute involving a voluntary organisation or persons connected

therewith, even if out of his own initiative, provide assistance in the

resolution of such disputes through>

(a) the facility of advisory opinions by experts chosen from

a panel of persons (hereinafter referred to as “the Advisory Panel”)<

(b) assistance to the parties to the dispute by referring such

dispute to mediation and, where necessary, impose mandatory

reference to mediation as provided herein<

(c) assistance to the parties to the dispute to make reference

to arbitration in accordance with the provisions of Part IV of the

Arbitration Act.

(2) The Commissioner shall encourage and assist parties to

a dispute involving a voluntary organisation to resolve the issue by

mutual agreement by referring it to the Advisory Panel, to mediation or

failing that, to arbitration.

(3) The Commissioner may organise information,

educational and training events in relation to alternative dispute

resolution systems for the benefit of voluntary organisations.

(4) For the purposes of this Part, a dispute involves a

voluntary organisation if it relates to>

(a) a dispute between members of a voluntary organisation

or between members and one or more administrators relating to

the affairs of the voluntary organisation, including the payment of

membership fees, the expulsion of members and similar issues< or

(b) a dispute between the founders and the administrators

of a foundation or the settlors or beneficiaries of a charitable trust

and the trustees relating to the affairs of the voluntary organisation

or charitable trust as the case may be< or

(c) a dispute between administrators of a voluntary

organisation< or

(d) a dispute between voluntary organisations relating to

activities, events and related matters< or

(e) a dispute between a voluntary organisation and a donor,

sponsor, beneficiary or other person who has relations with the

voluntary organisation, other than purely commercial relations for

the supply of goods or services< or

(f) a dispute between a volunteer and a voluntary

organisation< or

(g) without prejudice to any law relating to employment, a

dispute between an employee of a voluntary organisation and the

voluntary organisation, which shall be handled in collaboration

with the Director for Employment and Industrial Relations< or

(h) a dispute between the Government and a voluntary

organisation in relation to any management or other contract entered

into for the rendering of services.

(1) The Advisory Panel shall be composed of persons who,

in the opinion of the Commissioner, are qualified to carry out the duties

of advisors in matters relating to voluntary organisations and the

voluntary sector in general.

(2) The Advisory Panel shall>

(a) communicate with the parties to the dispute immediately

on the referral of such dispute by the Commissioner<

(b) organise meetings between the parties, as may be

necessary, in order to resolve the dispute<

(c)

consider the causes and circumstances of the dispute<

(d) endeavour to bring about amicable settlement of the

dispute as expeditiously as possible<

(e) make recommendations, as deemed fit, in order to

resolve the dispute<

(f) in the event of failure to achieve amicable settlement

make recommendations for mediation or arbitration in terms of

articles 29 and 30.

(1) When the Commissioner refers a dispute involving a

voluntary organisation to mediation, the Commissioner shall do so by

notice in writing to the parties and the parties shall be bound by such

reference>

Provided that the Commissioner shall in the notice state who

is responsible for the commencement of the proceedings and shall

establish a time therefor, failing which the other party or parties may

commence mediation proceedings themselves.

(2) Each party referred to mediation shall be bound to act

in good faith in the conduct of such proceedings and any party may

withdraw from mediation procedures at any time>

Provided that if the mediator considers that a party has not

demonstrated good faith in his conduct to promote or proceed with the

mediation, then the mediator may order costs to be borne by such party.

(3) The Malta Mediation Centre may, after having consulted

the Council, from time to time, prescribe rules governing mediation

procedures in relation to voluntary organisations, including rules on

the appointment of a mediator by such Centre in the event that the parties

fail to agree on such appointment.

(4) The Council shall, from time to time, advise the Malta

Mediation Centre in the drawing up of a panel or panels of mediators

on matters involving voluntary organisations.

(1) When a dispute as defined in article 27 is submitted to Arbitration.

arbitration under the rules of the Malta Arbitration Centre, the dispute

shall, in the absence of agreement to the contrary by the parties involved,

be determined in accordance with the provisions of the Arbitration Act Cap. 387.

and the arbitral tribunal shall take into consideration general principles

of good practice, transparency and fairness that are generally accepted

and applied within the voluntary sector.

(2) The Council shall, from time to time, advise the Malta

Arbitration Centre in the drawing up of a panel or panels of arbitrators

on matters involving voluntary organisations.

(3) The Malta Arbitration Centre may, after having

consulted the Council, from time to time prescribe rules governing

arbitration procedures involving voluntary organisations.

PART VII

OFFENCES

Where any person acts in breach of any of the provisions of Penalties.

this Act or any regulations made thereunder, and a specific penalty is

not provided for the offence under this Act or any regulations made

thereunder, such person shall, on conviction, be liable to a fine (multa)

of not less than fifty liri (Lm50) but not more than one thousand liri

(Lm1,000) or to a term of imprisonment for a period not exceeding six

months, or to both such fine and imprisonment.

Any person who, in any manner, forges or alters a Certificate Forgery or

alteration of

of Enrolment of a voluntary organisation so as to give the impression certificates or

that he acts on behalf of an enrolled voluntary organisation, or that an misrepresentation

of status.

existing organisation is a voluntary organisation when it is not, shall be

guilty of an offence and shall be liable to the same punishment as

provided for in article 183 of the Criminal Code.

(1) Any person who knowingly acts or purports to act as

an administrator and

an administrator of a voluntary organisation without having been duly

appointed or elected as an administrator of such organisation, shall be

guilty of an offence punishable as a contravention unless the actions of

the said person constitute a more serious offence under any other law,

in which case it shall be punishable accordingly.

(2) Any person who makes or attempts to make a public

collection when not enrolled as a voluntary organisation under this Act

shall be guilty of an offence.

(1) The Commissioner may investigate the affairs of any

voluntary organisation at any time and may demand, in writing, any

relevant information relating to the operation of a voluntary organisation

or any person involved in the activities of a voluntary organisation, if

he has cause to believe that such information is necessary in order to

establish whether an organisation is acting in compliance with the

provisions of this Act or any regulations made thereunder.

(2) Any person who fails to provide information and

documentation as aforesaid, and destroys or defaces documents, or

attempts to destroy or deface documents, required by the Commissioner

pursuant to this article shall be guilty of an offence.

(3) The Commissioner may issue directives demanding

compliance with any of the provisions of this Act or any regulations

made thereunder and failure on the part of any person to comply with

such directives shall constitute a breach of duty.

(4) The Commissioner may set a period for compliance with

any of the provisions of this Act or any regulations made thereunder

and may impose penalties for non-compliance within such period>

Provided that such penalties shall not exceed one thousand

liri (Lm1,000) for the breach of a directive and fifty liri (Lm50) for

each day of non-compliance and such penalties shall be paid to the

Voluntary Organisations Fund.

(5) Any person or organisation who receives a

communication in terms of this Part of this Act shall be entitled to apply

to the Board of Appeal on the basis that such investigation, directive,

order or penalty is not justified or reasonable in the circumstances and

the Board of Appeal may give any directions it considers appropriate

and any penalties imposed by the Commissioner in terms of sub-article

(4) shall be suspended until final determination by the Board of Appeal.

PART VIII

COUNCIL FOR THE VOLUNTARY SECTOR

(1) There shall be set up a body to be known as the Council Council for the

Voluntary Sector.

for the Voluntary Sector which shall assist the Commissioner and

provide a forum for the voluntary sector and a platform from which to

develop co-operation between voluntary organisations and the

Government and co-operation between voluntary organisations amongst

themselves.

(2) The Council shall be composed of a Chairperson and

another ten members. Out of these eleven members, one shall be

appointed by the Minister to represent the Government, another member

shall be the Commissioner ex officio and the other nine members shall

be appointed, in accordance with sub-article (3), from among and to

represent the voluntary sector.

(3) The members of the Council who are appointed to

represent the voluntary sector shall reflect the various sectors in which

voluntary organisations operate and shall be appointed by the Minister

after the receipt of nominations following a public call by the Minister

for nominations in the following manner>

(a) five members from among the voluntary sector as

follows>

(i) three members shall be nominated by voluntary

organisations enrolled in terms of this Act<

(ii) one member shall be nominated by voluntary Cap. 16.

organisations which are not enrolled in terms of this Act but

registered in terms of the Second Schedule to the Civil Code<

(iii) one member shall be nominated by voluntary Cap. 16.

organisations which are neither enrolled in terms of this Act

nor registered in terms of the Second Schedule to the Civil

Code<

(b) four members shall be appointed as follows>

(i) one member to represent founders of and donors to

voluntary organisations<

(ii) one member to represent members of voluntary

organisations and volunteers<

(iii) one member to represent administrators of

voluntary organisations<

(iv) one member to represent foreign and international

organisations>

Provided that where there is more than one nomination

representing a particular sector, the Minister shall appoint such

members from among the nominations received>

Provided further that where no nominations are received,

the Minister shall appoint such members at his discretion>

Provided that prior to appointing the members of the

Council, the Minister shall immediately consult the Social

Affairs Committee of the House of Representatives or any

other committee substituting the same on the nominations

received.

(4) The Commissioner shall be the Deputy Chairperson of

the Council and the Chairperson shall be elected by the members of the

Council from among themselves.

(5) If the Chairperson is absent from Malta or is otherwise

temporarily unable to perform the functions of his office, the Deputy

Chairperson shall act as Chairperson and shall exercise all the powers

and functions of the Chairperson.

(6) The members of the Council shall be appointed for a

period of two years and may be re-appointed on the expiration of their

term for further periods of two years in accordance with the procedure

established in this article.

(7) The Minister may, from time to time, make regulations

to regulate the nomination, appointment and removal of members of

the Council.

(8) A person shall not be qualified to be appointed or to

hold office as a member of the Council if he>

(a) is a Judge, a Magistrate, a Member of the House of

Representatives or a Local Council, or a candidate for election to

the House of Representatives or a Local Council< or

(b) is legally incapacitated or interdicted< or

(c) has been declared bankrupt or has made a composition

or arrangement with his creditors< or

(d) has been convicted of a crime affecting public trust or

theft or fraud or of knowingly receiving property obtained by theft

or fraud, or of an offence against this Act.

(9) Subject to the provisions of this article, the office of a

member of the Council shall become vacant>

(a)

at the expiration of his term of office< or

(b) upon his written request to the Minister, to resign from

such office< or

(c) if any circumstances arise that, if he were not a member

of the Council, would cause him to be disqualified for appointment

as such.

(10) The Council shall meet at least once every three months

and shall be convened by the Chairperson>

Provided that the Chairperson shall convene a meeting of the

Council when requested to do so by at least three members thereof.

(11) The Council shall, subject to the foregoing provisions,

regulate its own procedures.

(12) The Council shall appoint a sub-committee composed

of three members of the Council and which shall be consulted by the

Commissioner in the cases referred to in article 7 (3). The sub-committee

shall have a quorum of two members and the written response of the

two members agreeing or disagreeing to a recommended course of action

shall suffice as an expression of the views of the committee.

Functions of the

The Council shall>

Council.

(a) generally advise and assist the Commissioner in the

performance of his functions<

(b) advise and assist the Commissioner in the promotion of

the voluntary sector in general<

(c)

administer the Voluntary Organisations Fund<

(d) carry out such functions and have such powers as may

be prescribed by the Minister, from time to time, by means of

regulations made by virtue of this Act.

PART IX

VOLUNTARY ORGANISATIONS FUND

(1) The Voluntary Organisations Fund shall be hereby

Organisations Fund.

established as a foundation and shall be registered in terms of the Second

Schedule to the Civil Code and enrolled as the first enrolled voluntary

organisation in terms of this Act.

(2) The address of the Voluntary Organisations Fund shall

be the office of the Commissioner or any other address as the Council

may, from time to time, deem fit.

(3) The objects of the Voluntary Organisations Fund shall

be to assist and support enrolled voluntary organisations through

education, management support and financial grants.

(4) The Voluntary Organisations Fund shall be vested with

the right to income and capital as is contemplated by the provisions of

this Act or any regulations made thereunder>

Provided that article 29 of the Second Schedule to the Civil

Code shall not apply to the Voluntary Organisations Fund and the

requirements therein shall be substituted by a statement signed by the

Commissioner.

(5) The Voluntary Organisations Fund shall be administered

by the Council which shall appoint a board of administrators for the

purpose.

(6) The board of the Voluntary Organisations Fund shall

enjoy discretion as to the distribution of income and capital of such

Fund for the purposes outlined in sub-article (3) and shall, by not later

than the fifteenth day of February of each year, submit to the Council a

detailed written report of its receipts and of all distributions of income

and capital of such Fund during the preceding calendar year.

(7) Legal representation of the Voluntary Organisations

Fund shall be vested in the Chairperson of the board of administrators

or any other person designated by the board for the purpose.

(8) The provisions of article 39 shall not apply to the

Voluntary Organisations Fund.

PART X

GENERAL

(1) Voluntary organisations shall not be established for Trading activities.

trading purposes nor to promote the interests of a commercial enterprise

nor shall they principally engage in trade.

(2) When a voluntary organisation wishes to carry out a

trading activity in order to raise funds to achieve its purposes, such

organisation shall establish an appropriate legal entity and the

administrators of the voluntary organisation shall ensure that such

activity shall not burden the human and financial resources of such

organisation beyond its means.

(3) For the purposes of this article, the grant on lease or a

management contract of land or buildings or other commercial property

to a third party, where no services are provided by the voluntary

organisation, shall not be deemed to be trading activities.

(4) For the purposes of this article, the following activities

carried out by a voluntary organisation directly in the achievement of

the purposes of such organisation shall not be considered to be a trading

activity for the purposes of this Act even if remuneration is received for

the following services rendered by such organisation>

(a)

fees for educational services<

(b) consideration for sale of goods and services to members<

(c) admission fees for entrance to art galleries, exhibitions

and museums or attendance at theatrical or musical activities<

(d)

participation fees in competitions organised for

members<

(e)

payment for residential accommodation and care<

(f) similar income which may be payable to voluntary

organisations established for specific social purposes for which they

have been established<

(g) such other class of income as may be prescribed by

regulations made by the Minister on the recommendation of the Council.

(5) For the purposes of this article, the investment of the

property of a voluntary organisation shall also not be deemed to be a

trading activity.

(6) In case of doubt, a ruling on whether any activity is a

trading activity or not for the purposes of this article shall be given by

the Commissioner on the application of any interested party and his

decision shall be subject to appeal to the Board of Appeal.

(7) Voluntary organisations shall not be exempt from the

obligation to obtain any authorisations or licences which may be required

to carry out any particular activity referred to in sub-article (4) in terms

of any other law.

(1) Except as provided in this article, an organisation shall

not be enrolled as a voluntary organisation in terms of this Act if>

(a) the State has the power to nominate, appoint, change or

remove the administrators of the organisation< or

(b) the organisation is a public agency.

(2) With respect to organisations existing on the date of entry

into force of this Act, where the State has the power to nominate, appoint,

change or remove all or some of the administrators of the organisation,

such organisations may be enrolled and shall continue to retain their

enrolment if they demonstrate to the Commissioner that they are

independent of the State.

(3) For the purposes of this article, an organisation shall be

considered independent of the State if every administrator thereof who

is appointed by the State subscribes to a declaration, submitted to the

Commissioner by the individual concerned at the relevant time, that>

(a) he understands that his duties are exclusively to the

purpose of the organisation and its beneficiaries and that he is

independent and autonomous of the State<

(b) he is a volunteer< and

(c) he is not a public officer except when his office in the

organisation is unrelated to the public office he holds and therefore

is not incompatible with the correct performance of his duties as

an administrator, independent and autonomous of the State.

(4) An organisation in which the State is involved shall>

(a) within two years from the coming into force of this Act

cease to be enrolled if the majority of its administrators are, on

such date, still subject to being nominated, appointed, changed or

removed by the State< and

(b) within four years from the coming into force of this Act

cease to be enrolled if any of its administrators are, on such date,

still subject to being appointed, changed or removed by the State.

(5) The provisions of article 72 of the Financial

Administration and Audit Act shall not apply to any administrator of an

organisation which is regulated by this article.

(6) For the purposes of this article>

(a) “State” means the Government of Malta, any Local

Council, any statutory corporation, public agency and other

organisation of whatever legal form controlled by the Government

and includes the President of Malta< and

(b) “public agency” means any entity of any legal form

which is established to carry out public administration.

The Commissioner may, from time to time and after Guidelines.

consultation with the Council, issue guidelines in relation to the activities

of voluntary organisations and such guidelines shall be binding on

voluntary organisations as codes of good practice.

(1) On payment of the applicable fee, any person may view Inspection of

documents.

and obtain copies of the Register and any documentation which has

been submitted to the Commissioner by any voluntary organisation.

(2) Voluntary organisations shall make the statute, annual

report and audited accounts available for inspection, free of charge, by

any founder, administrator or member of the voluntary organisation as

well as by any donor or beneficiary who satisfies the administrators of

an interest in the information.

(3) If a person is unjustifiably refused any information by a

voluntary organisation such person may complain, in writing, to the

Commissioner who shall decide on whether such person is entitled to

the information or not in terms of this article and inform the complainant

in writing of his determination, and reasons therefor, within a reasonable

time>

Provided that the Commissioner shall inform the relevant

voluntary organisation of any decision taken in terms of this sub-article

and any person who feels aggrieved by such decision taken by the

Commissioner shall have the right to appeal to the Board of Appeal

within five days of the date of receipt of such decision taken by the

Commissioner.

(1) The Minister shall have the power to make regulations>

(a) to further regulate voluntary organisations, whether

enrolled or not in terms of this Act<

(b) to establish the forms for the enrolment of a voluntary

organisation and for the notification of changes to the statute to its

administrators and otherwise<

(c) to establish the form and contents of certificates to be

issued in terms of this Act<

(d) to establish the forms and procedures to be used for

appeals in terms of this Act<

(e) to establish rules applicable to public collections by

voluntary organisations<

(f) to regulate foreign or international voluntary

organisations carrying on activities in Malta<

(g) to lay down any penalties for breach of the provisions

of this Act<

(h) to implement any international convention or any

European Union regulation or directive, to the extent necessary,

to which Malta has adhered to in the context of voluntary

organisations or the voluntary sector<

(i) to regulate the composition of the Advisory Panels and

to regulate the procedures to be followed by the Advisory Panels

and by the persons appointed on such panels<

(j) to regulate the Voluntary Organisations Fund and the

terms and interest rates of loans therefrom and the terms and

conditions of guarantees which may be provided by such Fund<

(k) to lay down rules on the position of volunteers in relation

to their employers when such volunteers wish to carry out voluntary

activity, in Malta or abroad, for periods beyond their leave

entitlement<

(l) to lay down rules on the powers of the Board of Appeal

in relation to the interpretation or variation of a statute and the

administration of voluntary organisations<

(m) to establish the form and content of annual reports and

accounts which are to be submitted to the Commissioner in order

to achieve a satisfactory level of transparency and accountability

of voluntary organisations<

(n) to extend, clarify or define the functions of the

Commissioner under this Act and provide for ancillary and related

matters<

(o) to lay down conditions or guidelines for the authorisation

by the Commissioner of any federation or association of voluntary

organisations who wish to operate as a regulatory body over its

members and their activities<

(p) for the better carrying out of any of the provisions of

this Act.

(2) The Minister may, with the concurrence of the Minister

responsible for finance, make regulations relating to the fiscal status of

voluntary organisations, including different rules for different categories

or different classification of purposes, and may establish the criteria for

the granting of any such exemptions, in whole or in part, from any law

relating to taxation, duties or other charges, as well as any fiscal rules

on the activities of voluntary organisations and donations to such

organisations. Such regulations may also establish the terms, conditions

and forms of any fiscal certificates, receipts or other documents which

may be necessary for the enjoyment of the above fiscal status and

regulations.

Passed by the House of Representatives at Sitting No. 554 of 24th September,

2007. A NTON T ABONE

R ICHARD J. C AUCHI

Clerk to the House of Representatives