Companies Act (Company Reconstructions Fund) Regulations,

Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 20,403, 12 ta’ Mejju, 2020 B 1293

L.N. 192 of 2020

COMPANIES ACT

(CAP. 386)

Companies Act (Company Reconstructions Fund) Regulations,

IN EXERCISE of the powers conferred by article 329B of the

Companies Act, the Minister for the Economy, Investment and Small

Businesses, has made the following regulations:-

(1) The title of these regulations is the Companies Act Citation and

scope.

(Company Reconstructions Fund) Regulations, 2020.

(2) The scope of these regulations is to create and regulate the

administration of a fund intended to facilitate company recovery

procedures instituted in accordance with article 329B of the

Companies Act.

In these regulations, unless the context otherwise requires

Interpretation.

"the Act" means the Companies Act;

"Agency" means the Malta Business Registry established by

article 3 of the Malta Business Registry (Establishment as an Agency) S.L. 595. 27.

Order;

"Fund" means the fund established in accordance with regulation

3;

"Official Receiver" means the person appointed by the Minister

pursuant to article 225 of the Act;

"recovery procedure" shall be construed in accordance with

article 329B of the Act;

"Special Controller" means a person appointed by the Court in

accordance with article 329B of the Act from the list held by the

Official Receiver in accordance with these regulations.

There shall be a fund to be known as the Company Functions.

Recovery Fund out of which payments shall be made to Special

Controllers appointed in accordance with article 329B of the Act as

may be paid out of the Fund in accordance with these regulations.

The Fund shall receive from the Agency the amount of five Financing.

hundred thousand euro (€500, 000) annually, or such lesser amount in

terms of the proviso to this regulation, to cover the expenses related to

its purpose under these regulations

Provided that the Fund shall not at any time have at its

disposal sums exceeding the aforementioned amount.

The Official Receiver shall, without prejudice to any other

power or function conferred on him by these regulations or by any

other law, act in accordance with any procedures established by the

Agency, to

(a) establish and maintain, in consultations with the

Agency, arrangements for the making of payments to Special

Controllers in accordance with these regulations;

(b) certify claims for compensation by Special

Controllers admitted in accordance with these regulations.

(1) The Official Receiver shall keep an updated list of

persons admitted in accordance with regulation 7 to act as Special

Controllers, which shall be made available to the Registrar of Courts.

Any person having the requisites to act as a Special

Controller in accordance with article 329B of the Act shall apply to the

Official Receiver in the prescribed form, or in such form as the

Official Receiver accepts, submitting a curriculum vitae and all

documentation required by the Official Receiver in order to be

admitted to the list held for the purposes of article 329B.

A person shall not be qualified for appointment as Special

Controller in accordance with these regulations if

(a) he is interdicted

or

incapacitated

or

is

an

undischarged bankrupt;

(b) he has been convicted of any of the crimes affecting

public trust or of theft or of fraud or of knowingly receiving

property obtained by theft or fraud, provided that the period for

disqualification shall be in terms of the limits mentioned in sub-

article (1) of article 142 of the Act;

(c) he is subject to a disqualification order under article

320 of the Act;

(d) during the time he has been a director or a secretary

of a company, he has breached the provisions of this Act for the

third consecutive time in a period of two (2) years to be reckoned

from the first breach;

(e) he has been convicted of any of the offences under

the Prevention of Money Laundering Act;

(f) he does not possess a minimum of five (5) years

proven experience in the administration of companies; or

(g) he does not possess a minimum of two (2) years

proven experience in the administration of companies and a

bachelor’s degree or equivalent from a recognised university.

(1) The remuneration and expenses of a Special Remuneration

Controller in accordance with these regulations shall be paid from the and

recoverable

Fund in respect of the period of appointment established in accordance from the Fund.

with article 329B(1)(d) up to a maximum of

(a) two thousand five hundred euro (€2,500) as

remuneration for the original period;

(b) one thousand five hundred euro (€1,500) as

remuneration for the first extension; and

(c) one thousand euro (€1,000) as remuneration for the

second extension.

(2) expenses which are deemed necessary for the continuation

of the Company Recovery Procedure, considering the particular

circumstances of each case, up to a maximum of five thousand euro

(€5,000) may be paid from the Fund.

(3) The maximum cumulative amount claimed from the fund in

accordance with paragraphs 1 and 2 in respect of each recovery

procedure shall not exceed ten thousand euro (€10,000).

(4) The amounts referred to in this regulation are inclusive of

value added tax.

(5) The limits mentioned in this paragraph may be increased by

the Official Receiver acting upon a recommendation of the Court, in

complex cases, or cases involving cross-border elements.

(1) A claim to be paid in accordance with regulation 9 Procedure with

shall be submitted to the Official Receiver together with all supporting regards to claim.

documentation as may be required by the Official Receiver.

(2) The Special Controller may submit a claim in accordance

with sub-regulation (1) at any time during the recovery procedure or

within twelve (12) months from the order of the court terminating the

recovery procedure.

(3) The Official Receiver may require

additional

documentation or information in relation to any claim.

(4) The Official Receiver shall pay claims from the Fund in

accordance with these regulations, as he deems appropriate and in

terms of any directions given by the Agency, regard being had to the

circumstances of the case and nature of the claim.

€0.18