CENTRAL CO-OPERATIVE FUND REGULATIONS

SUBSIDIARY LEGISLATION 442.03

CENTRAL CO-OPERATIVE FUND REGULATIONS

21st October, 2016

LEGAL NOTICE 344 of 2016,as amended by Legal Notice 81 of 2019.

The title of these regulations is the Central Co-operative

Fund Regulations.

Substituted by

L.N.81 of 2019.

(Regulation 17)

Code of Ethics

1. Principles

The Committee and its members shall take as their inspiration and

aspiration the Values and Principles of the International Co-operative

Alliance as reproduced at the end of this Code. The work of the Committee

is dedicated to improve the cooperative impact on the Maltese economy

and help to provide a sustainable pluralistic and diverse national economy.

The Committee and its members should govern according to the highest

standard of integrity, honesty, loyalty, confidentiality, commitment

transparency, accountability and professionalism, and in a manner that

treats all stakeholders fairly, equitably and promptly.

Without prejudice to the Constitution or where any other law otherwise

provides, the Committee and its members should ensure that their actions

are inspired by loyalty to the Committee and to all stakeholders. This is

especially important as this Committee is responsible for the distribution of

funds that have been subscribed by a levy prescribed by the Government

on the surpluses of successful co-operatives. Hence the Committee

members have a fundamental responsibility not just to Government but

also to co-operatives and their individual members, as well as to the wider

public.

The Committee and its members should ensure that their members commit

to decisions that not only economically effective and efficient but are also

socially responsible in line with the underpinning philosophy of

democratically owned co-operative enterprise.

The Committee and its members are expected to provide impartial and

accurate advice to the Government of the day.

2. Fiduciary duty and duty of care

Being a Committee member brings with it a commitment to carry out all

necessary duties and responsibilities which must be performed by the

Committee. The Committee and its members owe both a fiduciary duty and

a duty of care towards the Committee and the persons that they serve.

Fiduciary duty relates to the concepts of loyalty, honesty, avoidance of

conflicts of interest, confidentiality and acting in good faith and interests of

the co-operative sector and its members, as well as meeting the high

standards expected by the wider public.

Duty of care relates to the exercise of care, diligence and skill in doing the

job properly e.g;

Attend every meeting of the board and of any committee or sub-

committees of the board to which he is appointed, unless there is an

avoidable reason for non-attendance, in which case the Member shall

notify the Chairperson of this.

Prepare properly for every meeting by reading in advance any documents

sent out for the purpose of the meeting.

Arrive on time for every meeting fully prepared and able to take an active

role in discussions and decision making.

As the Committee’s agents, the Committee and its members must use their

discretion to ascertain that decisions are taken within the policies,

parameters and priorities in keeping with the objects of the Committee and

with the Values and Principles of the International Co-operative Alliance.

In particular, decisions should never be made for any collateral purpose,

nor for personal interest.

3. Compliance with the law

Each Committee member should understand and abide by his legal duties

and responsibilities. The Committee and its members must ensure that

individually, collectively as the Committee, and the Committee, act in full

compliance with the letter and spirit of all the relevant legislation.

The Committee and its members must ascertain that they commit

themselves and the Committee to act ethically and legally at all times.

They must also avoid situations which could be perceived as improper.

Whilst the Committee and its members must be conversant with the

relevant legislation and regulations in force, they are expected to seek

professional advice whenever in doubt. They must also ensure that the

Committee’s records are accurate and faithful.

4. Fairness, equity and standards of behaviour

In addition to fulfilling their legal duties, members are expected to show

high standards of behaviour in carrying out their responsibilities. This is

necessary in order that the Committee can function properly, that it can

play its part appropriately in the overall governance of the Central Co-

operative Fund, and that the good name and reputation of the Central Co-

operative Fund is maintained.

Members will observe the following general standards

Members will perform any duties associated with their positions diligently,

impartially and conscientiously to the best of their ability.

In their dealings with each other, with the Committee’s officers, and with

its professional advisers, members must treat people politely, fairly, and

with dignity and respect.

The Committee and its members must ensure that their Committee deals

CENTRAL CO-OPERATIVE FUND

with issues or cases with consistency, promptness and fairness. This

involves dealing with matters in accordance with approved procedures

quickly and without discrimination on any grounds. Every Committee

member is obliged to treat each issue reasonably and with a view of

meeting the principles of natural justice.

On public occasions and on all Central Co-operative Fund business,

members must behave with integrity and in a way that is appropriate for a

member of such an organisation. The member must not bring the Central

Co-operative Fund into disrepute or prejudice its general good standing in

any way.

Members should behave in a way that demonstrates their beliefs in the

Values and Principles and ethical stance of the co-operative movement

worldwide and shall conduct themselves in a way that does not call these

beliefs into question or prejudice the general good standing of co-operation

in any way.

Members will treat meetings of the Committee as formal occasions, and

will

accept the authority of the Chairperson of any meeting, expressing all

questions and points of view through the Chairperson;

listen to the views of other members with an open mind, seek advice or

clarification where needed, express their own views, and come to their own

decisions on individual matters in good faith in what they believe to be in

the best interests of the Central Co-operative Fund and its objectives,

taking into account relevant factors and ignoring irrelevant factors;

accept decisions made by the Committee in accordance with the law and

the Central Co-operative Fund governing document, even if he disagrees

with it, and voted against it if a vote was taken. This includes a

commitment to support any decision of the Committee outside of

Committee meetings;

not resort to behaviour that could be considered aggressive or intimidating,

nor indulge in favouritism, cronyism or nepotism;

keep to the agenda, raise other issues under "any other business" according

to agreed procedures, and not engage in discussions during the meeting

which are not relevant to the issues of the meeting;

not present misleading information or behave in a way designed to mislead

the board.

5. Public comment and confidentiality

The Committee and its members enjoy the right to make public comment

and enter into public debate on political and social issues. However, such

action does not bring them into conflict in any manner with their primary

duties.

Committee members will treat all information which they receive in their

capacity as members, and all discussions at Committee meetings as

confidential.

5.3 Members will observe the following obligations of confidentiality

They will not disclose any information outside Committee meetings unless

it is already in the public domain, or they are specifically authorised by the

Committee to do so, or if required to do so by law. This includes

information about the business before the Committee, deliberations of the

Committee in reaching decisions, and the way individual members voted

on issues.

They will not use any information for personal advantage, or the

advantage of family, friend, associates or business and other associations’

benefit.

They will not pass information to any representative of the press or media,

and will refer any press or media enquiries to Chairperson.

They will not make unauthorised photocopies of any documents.

They will take proper care of any documents they receive as members, and

store and dispose of them securely.

The Committee and its members must ensure that the Committee applies

the highest standards of management: ensure accountability requiring

everyone to be held responsible for their actions, ascertain transparency in

the decision making process to cultivate trust, and integrate and instil all

the elements of good governance within the Committee’s culture.

6. Conflicts of interest

A conflict of interest arises out of a situation where the Committee and its

members use their post to benefit themselves, friends or families or persons

associated in their work endeavours.

The Committee and its members should not use their position to promote

their interests, interests of related persons, business associates,

corporations, unions, partnerships and friends.

The Committee and its members should not take advantage from their

Committee’s transactions and opportunities or to solicit clients for their,

their associates’, work, friends’ or family business’ interests.

The Committee and its members should not only avoid situations that may

give rise to conflicts of interest and must disclose to the Committee and the

Chairperson in writing any situation where there is a perceived or potential

risk that conflicts of interest may arise.

CENTRAL CO-OPERATIVE FUND

In the event that any member of the Committee declares that the

Chairperson or other member has a conflict of interest, the Chairperson

will notify the Minister of such claim.

The Chairperson must fully disclose in writing to the Minister all

situations and circumstances that could give rise to conflicts of interests.

He is to seek the advice of the Minister in such matters but as a minimum,

he should not participate in the meeting nor have access to the relative

documents.

Likewise the Committee and its members must fully disclose in writing to

the Chairperson and the Committee, all situations and circumstances that

could give rise to conflicts of interests. Such member should recuse

themselves from the meeting when the relevant item is discussed and

should not have access to any documents relevant to the conflicted item.

The Committee and its members are duty bound to reject totally and

immediately any undue pressure that is brought to bear on them to

influence their behaviour or decisions and should disclose such instances to

the Chairperson and the Committee, who must decide on the most

appropriate action, giving due consideration to disclosing the matter and

seek advice from the responsible Minister.

The Chairperson must keep a register of member’s interests which is open

to inspection by members.

7. Entertainment, gifts and favours

Committee members must not, in their capacity as a Committee member

(or what might be perceived as their capacity as member, receive from or

give to any person or organisation any hospitality, gift or any other benefit.

The Committee and its members, their relatives and friends should not

accept entertainment, gifts, benefits or favours that give rise to or are

perceived to create favoured positions in doing business with the

Committee or deviate from the proper course of duty. Such benefits also

include the receipt of cash, loans, securities or commissions.

The Committee and its members should not offer entertainment, gifts,

benefits or favours in their role as Committee members to solicit preferred

treatment for themselves, their families or friends, or the Committee.

Committees vary in their policies on the acceptance of gifts and benefits

depending on the nature of their business. It is expected, however that only

token gifts or benefits may be accepted for example inexpensive items (less

than €20 in value) such as free calendars may be accepted in circumstances

approved by the Chairperson and the Committee.

8. Procurement

In all procurement practices, including in the setting out of procedures for

tendering, the Committee and its members must bear in mind that the

expenditure involved is made out of co-operative and public funds. The

highest possible level of accountability and transparency should be

reflected in every stage of the decision making process of procurement.

The Committee and its members should seek to ensure the best value for

money in drawing up the specifications and the conditions of procurement

and in the adjudication of the offer or offers.

The recognised organisation shall not be obliged to observe public

procurement practices (notwithstanding regulation 17 of the regulations.

but shall observe commercial good practice.

9. Use of Committee’s property

The Committee and its members are expected to be efficient and

economical in the use and management of the Committee’s resources. They

are also required to be conscientious in their use of the organisation’s

property and services, and are duty bound to avoid their abuse by other

parties.

The Committee and its members are required to seek the Chairperson’s

and Committee approval to use the Committee’s property for any purpose

not being the Committees business.

10. Outside business interests, employment and associations

At the time of appointment the Committee and its member’s nominees

should declare in writing any outside business interests, investments,

positions of employment or associations that could potentially give rise to

conflicts of interest.

A Committee member has a duty to notify the Chairperson and Committee

in writing if, during his membership of the Committee his position as

reported in paragraph 9.1 above changes. An annual review should be

conducted by Committee officials.

The Committee and its members should act and behave in the best interest

of the Committee irrespective of any outside activities.

11. Relationships with stakeholders

The relationship with stakeholders is at the heart of corporate governance.

The Committee and its members should exhibit care and diligence in their

dealings with the various stakeholders, acting in good faith and fairness in

their rapport with them.

The relationship between the Minister and the Committee is a complex

one. The Minister is responsible to the Government as well as to

Parliament and must speak both to and for the Committee. The

Chairperson and the Committee must ensure that the Minister is provided

with the best possible information about the decisions and actions of the

Committee.

CENTRAL CO-OPERATIVE FUND

The relationship between the Committee and the co-operatives and their

individual members is also a complex one. Members must have a deep and

thorough understanding of the distinct nature of co-operative enterprise. In

particular its fundamental role to ‘meet the needs of its members’ and not

solely to maximise profits where that could be to the detriment of the

individual member. Co-operative elected or appointed members of the

Committee must be particularly diligent in recognising their fiduciary duty

to the Committee and avoid pressure to accept mandates for action from

their co-operative associations.

12. Breach of this Code

The Committee should ensure that it behaves, and is seen to behave, in an

ethical manner.

The Committee and its members should adhere to the standards described

in this Code of Ethics. In fulfilment of this, every Committee member

should review and declare adherence to the Code of Ethics upon

nomination.

The Chairperson is responsible to ensure that this Code of Ethics is upheld

by the Committee and the members. Members found in breach of the Code

of Ethics are liable to censure and recommendation for dismissal from the

position. The Chairperson must ensure that breaches are reported to the

responsible Minister immediately after they have come to their attention.

13. Declaration (to be completed and signed by each Committee member

before taking up appointment on the Committee).

I (name and surname), ......................................................... Identity Card

number ....................., declare that I have read and understood this Code of

Ethics for the Committee and its members, and agree to conduct myself in

accordance with this Code.

Signature ............................................

Date ....................................................

(1)

In these regulations, unless the context otherwise

requires -

"Act" means the Co-operative Societies Act;

"Chair" means the Chairperson of the Committee of the Central

Co-operative Fund;

"Committee" means the Committee of the Central Co-operative

Fund;

"Co-operatives Board" means the Board established by article 3

of the Act;

"Fund" means the monies of the Central Co-operative Fund as

established by article 91 of the Act;

"Malta" has the same meaning assigned to it in article 124 of the

Constitution;

"Minister" has the same meaning assigned to it in article 2 of the

Act;

"primary society" has the same meaning assigned to it in article 2

of the Act.

(2) Words and phrases not defined in these regulations shall

have the same meaning as is assigned to them in the Act.

(1) There shall be a Committee which shall be known as

the Central Co-operative Fund Committee whose functions shall

be

(a) to administer the Central Co-operative Fund;

(b) to employ necessary personnel to fulfil its functions;

(c) to finance programmes, including education and

training relating to the promotion and development of

the co-operative movement for members of and

personnel engaged by co-operatives and other persons

who may actively contribute to the promotion of the

co-operative movement;

(d) to commission studies and research on particular areas

of co-operative activity or any individual co-operative

society in Malta;

(e) to finance co-operative educational material with a

view to promoting co-operative ideals and practices;

(f)

to support and intensify the participation of the

CENTRAL CO-OPERATIVE FUND

Maltese

co-operative

movement

in

relevant

organisations, activities and projects

on an

international level;

(g) to collect, recover and institute proceedings for the

payment of sums to the Central Co-operative Fund, in

terms of article 91(6) of the Act;

(h) to compile and approve the annual financial statements

of the Fund;

(i)

to appoint the auditor of the Fund;

(j)

to receive and consider the auditor’s report on the

accounts and workings of the Fund;

(k) to provide assistance to co-operative societies in

connection with access and the raising of finance;

(l)

to investigate any matters concerning the operations of

the Fund; and

(m) to perform any other function that the Minister may

assign.

(1) The Minister shall appoint the Committee of the

Central Co-operative Fund, in accordance with the provisions of

these regulations.

(2) (a) The Committee shall consist of eleven voting members

who shall be composed of six independent members appointed by

the Minister, two members each from amongst members of the two

leading, eligible and recognised organisations and one member

nominated by the joint consent of the two leading eligible and

recognised organisations

Provided that in the case of the one member nominated by the

joint consent of the two leading and eligible and

recognised organisations is not nominated within one

calendar year from a request made by the Minister, then

the Minister shall decide at this discretion on the

appointment of this member

(b) The six independent members shall be appointed by

the Minister responsible for co-operatives for a period

of three years. These members shall hold and vacate

office in accordance with the provisions of these

regulations and with the terms of their appointment,

and may at the end of their term of office be re-

appointed thereafter

Provided that a member of the Committee may at any

time, by notice in writing to the Minister, resign from

his appointment on the Committee.

(c) A member of the Committee appointed by the Minister

may be removed from office by the Minister if such

member -

(i)

is, in the opinion of the Minister, guilty of

serious misconduct in the performance of his

duties;

(ii) is incapable of carrying out his duties; or

(iii) is in breach of any of the provisions of these

regulations.

(d) Any other member of the Committee, other than a

member referred to in paragraph (c), may be removed

from office by a simple majority of the Committee

members if such member -

(i)

is, in the opinion of the Committee members,

guilty of serious misconduct in the performance

of his duties;

(ii) is incapable of carrying out his duties; or

(iii) is in breach of any of the provisions of these

regulations.

(e) In the case of all the members not appointed by the

Minister, these members shall, before taking up the

appointment on the Committee, declare in writing

under oath, to the Chair, that at the time of

appointment they are not subject to any pending

criminal proceedings, have not been convicted of a

serious criminal offence, have not been interdicted for

any period and have not been declared bankrupt or

insolvent. Should any of the afore-mentioned

disqualifications result, the said prospective members

shall not be eligible to take up their appointment on

the Committee.

(f)

The Minister shall appoint the Chair of the Committee

from amongst one of the six independent members

appointed by the Minister.

(g) None of the six independent members appointed by the

Minister shall be appointed or shall remain a member

of the Committee if that person is -

(i)

involved, directly or indirectly in any activity or

function of the Committee that can give rise to

any conflict of interest; or

(ii) involved, directly or indirectly in any activity or

function of the Committee that can prejudice the

work undertaken by the Committee; or

(iii) if they offer or are engaged in any other kind of

service to any co-operative registered with the

Board, or to founding members in the process of

setting up a co-operative, or any recognised

organisation, or the Co-operatives Board.

(h) All the members shall be persons of integrity and good

moral character who shall work independently and will

not divulge any information, whether financial or of

any other nature to third parties, and when exercising

their functions under regulation 3 shall respect and

apply the principles of good administrative behaviour

laid down in article 3 of the Administrative Justice

Act.

(i)

All the members are expected to have extensive

knowledge in a field related to their appointment

including, but not limited to co-operatives, financial

management, legal, regulatory and accountancy.

(j)

The members of the Committee, other than those

appointed by the Minister, shall be appointed for a

period of three years. These members shall hold and

vacate office in accordance with the provisions of

these regulations and with the terms of their

appointment, and may at the end of their term of office

be re-appointed thereafter

Provided that a member of the Committee may at any

time, by notice in writing to the Committee, resign

from his appointment on the Committee.

(3)

(a) A Secretary shall be appointed by the Minister and

shall be responsible for performing administrative

duties to support the Committee. The Secretary shall

not have voting rights in the Committee.

(b) The duties of the Secretary shall include the following

(i)

to convene and attend meetings of the

Committee;

(ii) to maintain correctly and up-to-date all the

Fund’s records, papers and registers, and to

conduct its correspondence;

(iii) to perform any other duties as may be specified

by the Committee.

(4)

(a) Observers who are not part of the Committee may be

invited to attend Committee meetings or parts thereof,

upon the request of the Chair, but shall not have voting

rights in any decisions taken by the Committee.

(b) Observers shall be considered to be any other

individual not forming part of the Committee and who,

on the basis of their own expertise and, or past or

present experience, are considered able to actively

contribute towards the promotion of the co-operative

movement.

(5) A member of the Committee shall be paid such honorarium

a s t h e M i n i s t e r m a y, f r o m t i m e , t o t i m e d e t e r m i n e . S u c h

honorarium shall be paid out of the Central Co-operative Fund.

(6) When a vacancy occurs for whatever reason in respect of a

member of the Committee in terms of sub-regulation (2), such

vacancy shall be filled by another appointment at the earliest

opportunity.

(7) Any member of the Committee who absents himself for

three consecutive meetings of the Committee without a valid reason

shall be considered as having resigned from the Committee. In this

case the procedure for the filling of a vacancy on the Committee

shall be as described in sub-regulation (7).

(8) Any member of the Committee who, directly or indirectly,

may have a conflict of interest or an interest, otherwise than as a

member of the Committee, in any matter being raised or discussed

by the Committee, shall withdraw from the meeting during the

discussion or until the matter in question is decided upon by the

Committee. Any disclosure shall be recorded in the minutes of the

meeting of the Committee.

(9) The members of the Committee and any employees engaged

by the Committee, and any other person authorised to act for or on

behalf of the Committee shall, at all times, treat any and all

information by applicants during the course of their duties as

confidential.

The legal and judicial representation of the Committee shall

be vested in the Chair and the Secretary or, in the Chair’s absence,

in an y ot h er m em be r of th e C om m it te e , w ho h a s a ls o b e e n

appointed by the Minister, in his stead.

(1) Meetings of the Committee shall be convened by the

Secretary acting on instructions of the Chair, and shall be held as

frequently as necessary but in any case not less than once every

month.

(2) The quorum at meetings of the Committee shall consist of

six members including the Chair.

(3) Notwithstanding the provisions of sub-regulation (2), the

Committee shall not be precluded from holding any meeting or

from acting on any matter merely by reason of any vacancy in its

Committee.

(4) All decisions of the Committee shall be taken by a simple

majority of votes taken by the members present and voting. The

Chair shall have, in the case of an equality of votes, a casting vote

in addition to his original vote.

(1) The Committee shall exercise a high degree of

diligence in administering the funds under its responsibility. The

Committee shall at all times assure the adequate liquidity of the

Fund.

(2) The Committee shall make available, as a minimum twice a

year, a report on the utilisation of the funding to the Minister and

the Co-operatives Board.

(3) The Committee shall, by no later than three months after

the end of each financial year, make available a complete report of

the previous year, its activities and operations, including audited

financial statements to the Minister and the Co-operatives Board. A

copy of this report shall also be made available to the public.

(4) The Committee shall afford to the Minister every facility

for obtaining and verifying information connected with the

activities of the Committee, in order to enable the Minister to

properly exercise his functions under these regulations.

Every payment made out of the Central Co-operative Fund

shall be approved by the Chair. The payment of the sums approved

by the Chair shall be authorised by means of a voucher signed by

two members of the Committee.

The Committee shall keep proper accounts and all other

necessary records in respect of the financial transactions and

operations of the Fund.

(1) The financial statements of the Fund shall be made up

to the 31st December of each year and shall be audited by a person

in possession of a warrant to practice as a certified auditor and who

shall be appointed by the Committee. The auditor so appointed

shall at all reasonable times have full and free access to all

accounting and other records relating to the financial transactions

of the Fund.

(2) The auditor, in taking up the appointment, shall declare in

writing that he has no conflict of interest whether directly or

i n d ir e c t l y w i t h a n y o f t he re c o g n i s e d o rga n is a t i on s o r a n y

registered co-operative society and, if any conflict of interest is

declared, shall not accept the appointment or, if it arises after such

appointment, shall withdraw from the appointment.

(3)

The auditor shall in particular report on

(a) whether the financial statements show a true and fair

view of the financial transactions and the state of

affairs of the Fund;

(b) whether proper accounting and other records have

been kept;

(c) whether the receipts, payments, deposits and

investments of monies in respect of the Fund have

been effected in accordance with the provisions of the

Act and of these regulations; and

(d) any other relevant matters arising from the audit.

(4) The auditor shall forthwith inform the Committee of any

material irregularity disclosed in the course of his audit.

(5) The remuneration of the auditor shall be fixed by the

Committee, as the case may be, and shall be paid for from the

Fund.

Any notice, communication or other document addressed to

the Committee shall be addressed to the Chair.

An organisation shall be officially recognised by the

Committee if on an annual basis

(a) it has as its members at least thirty-five percent of all

the eligible registered co-operative primary societies

Provided that an annual declaration issued by the Co-

operatives Board attesting to the above shall be

submitted to the Committee; or

(b) its members contribute at least thirty-five percent of

all the paid-up contributions to the Fund

Provided further that all primary societies shall be required

to inform the Co-operatives Board of their affiliation with any

recognised organisation on an annual basis.

(1) The following shall be eligible to apply for access to

funds from the Central Co-operative Fund in accordance with

regulation 15

(a) eligible co-operative societies that make a direct

application to the Committee;

(b) any recognised organisation;

(c) the Committee;

(d) the Co-operatives Board; and

(e) any person who actively contributes to the promotion

and development of the co-operative movement.

(2) Applications shall be made to the Committee in accordance

with the procedures as prescribed by the Committee.

(1) In accordance with regulation 13(1)(a) and (b), any

eligible co-operative society or eligible recognised organisation

applying for access to funds shall be in conformity with all of the

following

(a) a copy of the co-operative’s last financial statements;

and

(b) a list of members, their identity card numbers,

addresses and email addresses; and

(c) a list of the elected committee members; and

(d) a list of attendees at the last Annual General Meeting

or a declaration by the committee that the Annual

General Meeting was convened and held in accordance

with the legislation and co-operative’s statute; and

(e) the co-operative society shall have made a minimum

paid up contribution of two hundred and fifty euro

(€250) of the last three financial years as determined

by the audited financial statements filed with the

Committee; and

(f)

theco-operative

societies’

and

recognised

organisations modified financial statements of the

preceding two financial years shall not be seriously

qualified by the co-operative societies or organisations

auditor.

(2) The following shall be exempted from being in conformity

with the requirements of regulation 14(1)

(a)

a new co-operative with three complete years or less

of financial operations;

(b)

a co-operative for social or community benefit that is

a social enterprise.

(3) The requirements in regulation 14(2) may be reviewed every

three calendar years by the Board.

Funds may only be utilised and shall be distributed by the

Committee for the following purposes

(a) by a co-operative society to finance research and

CENTRAL CO-OPERATIVE FUND

development, training and educational programmes of

the co-operative society, but excluding general

administration costs, salaries, wages, honoraria,

international membership fees and related personnel

expenditure;

(b) by a recognised organisation to finance research and

development, training and educational programmes

relating to the promotion and development of the co-

operative movement but excluding international

membership fees and general administration costs

including salaries, wages, honoraria and related

personnel expenditure;

(c) by the Committee to finance research and

development, training and educational programmes

relating to the promotion and development of the co-

operative movement, support services and general

administration costs including honoraria of its

members salaries and wages and to fulfil its functions;

(d) by individuals or statutory bodies who actively

contribute to the promotion of the co-operative

movement to finance initiatives, training and

educational programmes relating to the promotion and

development of the co-operative movement.

(1) Funding shall be distributed by the Committee, subject

to availability, according to the following structure

(a)

a sum equivalent to three and half percent of the five

percent paid up dividend share capital

contributed during the preceding year shall be

granted to the two leading, recognised and

eligible organisations towards the financing,

administration and provision of services to

members of the organisations;

(b)

a sum equivalent to one and half percent of the five

percent paid up dividend share capital

contributed during the preceding year shall also

be granted to

(i) member societies of both leading, recognised

and eligible organisations;

(ii) co-operatives not members of or affiliated with

the two leading, recognised and eligible

organisations;

(iii) for jointly presented proposals by the two

leading recognised and eligible organisations;

and

(iv) those eligible for funding in accordance to

regulation 13.

(2) The Committee shall make available the funds to the two

leading, recognised and eligible organisations in regulation

16(1)(a)

(a) upon majority approval of the forecasted annual

budget of the following year which shall be provided

to the Committee by not later than October of the

preceding year;

(b) upon majority approval of the budget, the Committee

shall transfer the funds for the upcoming year by not later

that seventh day of January.

These regulations and the Committee shall be subject to the

exist in g r ul es g overni ng pu bl ic f un ds i ncl ud ing t he P u bli c

Administration Act, the Public Services Management Code and the

Code of Ethics in accordance with the First Schedule to the Public

Administration Act.

In any one year, the Committee may distribute up to one

hundred percent (100%) of the yearly contribution recognised in

the latest available audited financial statements of the Fund.

In any case where the Committee agrees to distribute more

than one hundred percent (100%) of the amount specified in

regulation 18, the written authority of the Minister is required.

(1) In accordance with the provisions of regulation 14 any

co-operative society which is in arrears in the Fund contribution

shall not benefit from funding and shall not be eligible to apply for

access to funding.

(2) For the purposes of this regulation contributions made

within nine months from the end of the financial year of the co-

operative society shall not be considered to be in arrears.

(1) The management and conduct of the office of the

Committee and the administrative control of any of its employees

shall be the responsibility of the Chair.

(2) The terms and conditions of any employees of the

Committee shall be comparable with those of employees in the

s e r vi c e o f t h e G o v e r n m e n t a n d s h a l l b e e s t a b l i s h e d b y t h e

Committee with the concurrence of the Minister.

A beneficiary of funds in terms of these regulations shall

submit, on a minimum basis, an annual return to the Committee

with a detailed account and proof of the use of the funds as

prescribed by the Committee

Provided that all funds not utilized in accordance with the

approval given by the Committee shall be reimbursed to the Fund

as directed by the Committee.

(1) Funds distributed by the Committee shall be subject to

such verifications that the Committee may from time to time

pursue.

(2) The beneficiaries of funds by the Committee shall allow

such verifications to take place as and when requested by the

Committee or by persons appointed by the Committee for this

purpose.

(3) The Committee shall reserve the right to withhold, suspend

or claim back payments made by the Committee to beneficiaries

who

(a) do not allow, or in any way obstruct, a verification

exercise; or

(b) misrepresent their funding accounts; or

(c) whose funding allocation is not being used for the

specific purposes for which it was intended.

The Committee may carry out investigations concerning

any shortcomings in connection with the use of funds and may refer

its findings to the police.

(1) Any eligible beneficiary of funds in accordance with

regulation 14 who wilfully, with intent to obtain funds under these

regulations or to assist any other person to do so -

(a) omits from an application or any other document or

statement made, prepared or submitted for the

purposes of or under these regulations, any matter

which should be included therein; or

(b) makes any false statement or entry in any return or

other document or statement prepared or submitted for

the purposes of or under these regulations; or

(c) gives any false answer, whether verbally or in writing,

to any question or request for information asked or

made in accordance with the provisions of these

regulations; or

(d) prepares or maintains or authorizes the preparation or

maintenance of any false books of account or other

records or falsifies or authorizes the falsification of

any books of account or records; or

(e) makes use of any fraud, art or contrivance whatever or

authorizes the use of any such fraud, art or

contrivance,

shall be guilty of an offence, and shall for each such offence be

liable on conviction to a fine (multa) of not less than one thousand

and two hundred euro (€1,200) and not exceeding five thousand

euro (€5,000).

(2) Upon any person admitting to or being found guilty of any

of the above offences, the Committee shall request the full

reimbursement of the funds issued.

CENTRAL CO-OPERATIVE FUND