COMPANIES ACT (COMPANY RECONSTRUCTIONS FUND) REGULATIONS

COMPANIES ACT

(COMPANY RECONSTRUCTIONS FUND)

SUBSIDIARY LEGISLATION 386.21

COMPANIES ACT (COMPANY RECONSTRUCTIONS

FUND) REGULATIONS

12th May, 2020

LEGAL NOTICE 192 of 2020.

(1)

The title of these regulations is the Companies Act

(Company Reconstructions Fund) Regulations.

(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

"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)

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

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 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

COMPANIES ACT

(COMPANY RECONSTRUCTIONS FUND)

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.

COMPANIES ACT

(COMPANY RECONSTRUCTIONS FUND)

(1)

The remuneration and expenses of a Special

Controller in accordance with these regulations shall be paid from the

Fund in respect of the period of appointment established in accordance

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

shall be submitted to the Official Receiver together with all supporting

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.