ESTABLISHMENT OF ADMINISTRATIVE PENALTIES AND SANCTIONS REGULATIONS

ESTABLISHMENT OF ADMINISTRATIVE

PENALTIES AND SANCTIONS

SUBSIDIARY LEGISLATION 442.04

ESTABLISHMENT OF ADMINISTRATIVE

PENALTIES AND SANCTIONS REGULATIONS

1st December, 2003

LEGAL NOTICE 115 of 2003 as amended by Legal Notices 426 of 2007

426 of 2012, 215 of 2020 and 329 of 2021.

The title of these regulations is the Co-operative Societies

(Estab lish men t o f Adm in istrati ve Penal ties and Sancti ons)

Regulations.

Substituted by

L.N. 426 of 2007.

[Regulation 3 and 5(2)]

Amended by

L.N. 426 of 2012.

The Board may inflict on any person who has violated any of the articles of the

Act or of any regulations made thereunder as listed in the First Column of this

Schedule and described in brief in the Second Column of this Schedule, the

corresponding penalties listed in the Third and Fourth Column of this Schedule.

First Column

Second Column

Third Column

Fourth Column

Article

Contravention

Penalty

Additional

Penalty

13, 39(2)

Failure to submit within a specified time to the Board

€116.47

€69.88 per

such information (e.g. list of members, their address,

month or part

occupied post and a legally valid identification

thereof

document number) as may be requested

14(2), 20(1)(b) Failure to undertake or execute any legitimate order

€116.47

€69.88 per

issued by the Board

month or part

thereof

18(1)

Misuse or abuse of the word “cooperative”,

€116.47

“koperativa” or any derivatives thereof (such as

“coop”)

28(3)

Failure of a provisionally registered cooperative to

€116.47

€23.29 per day

show its provisional legal standing on all its

or part thereof

correspondence

37(2)

Failure to register a change of address with the Board

€116.47

38(1)

Failure to maintain an updated Register of Members

€116.47

and Shares

39(1)

Failure to allow Society Members to inspect the

€116.47

Society Statute, list of members and Act free of

charge

45(3), 66(h)

Failure to appoint an Auditor

€116.47

47, 110(1)(b)

A Society, its members or its officials knowingly or

€465.87

recklessly provides misleading, false or deceptive

information to auditors or other persons

48(1), 48(4)

F a i l u r e b y a C om m i t t e e o f M a n a g e m e n t a n d / o r

€116.47

Auditor to sign audited accounts (including failure to

provide signature of individual)

48(1)(a)

Non Compliance of Financial Report with Third

€116.47

Schedule of the Act

48(1)

Audited Financial Report not sent to the Board within

€116.47

the stipulated time

48, 64(1), 65(1) Annual General Meeting is not convened within six

€116.47

€69.88 per

months of the closure of the financial year

month or part

thereof

Society accepts the application for membership of a

€116.47

person who is not eligible for membership

53(2)(d)

Society accepts the membership application of a

€116.47

commercial partnership without informing the Board

immediately

A member of a Society has more than 40% of the

€116.47

share capital of that society

66(b)

Audited financial accounts not presented during an

€116.47

annual general meeting

A Society accepts a person on its committee of

€116.47

management when such person is not eligible to

occupy such a post

101(3)

Failure by liquidator to deposit funds or other assets

€116.47

of a dissolved Society as determined by the Board.

101(4)

Failure by liquidator to submit an annual progress

€116.47

€69.88 per

report to the Board relating to the process of

month or part

liquidation of a Society

thereof

110(1)(a)

A Society, its members or its officials deliberately

€116.47

€69.88 per

refuse or fail to provide information or to perform

month or part

duties required by the Act

thereof

110(1)(a)

A Society fails to adjourn and update its Statute in

€116.47

accordance with Chapter 442 of the Laws of Malta

110(1)(c)

A person deliberately, or without valid reason, fails to

€116.47

obey or execute a legitimate order issued in writing

under the Act

110(1)(d)

A person acts as a member of a committee of

€116.47

management or of a supervisory board when such

person is not entitled to do so

110(1)(e)

A Society, its members or its officials perform an

€116.47

action which requires the prior consent or approval of

the Board, without first having obtained such prior

consent or approval

110(1)(f)

A Society, its members or its officials deliberately fail

€116.47

to fulfil or endorse a function which is required under

the Act

110(1)(g)

A Society, its members or its officials deliberately

€116.47

perform or endorse an action which is prohibited

under the Act

Words used in these regulations shall have the same

meaning as in the Co-operative Societies Act, hereinafter referred

to as “the Act”.

The Board shall have the power to impose administrative

penalties and sanctions in accordance with the Schedule and such

administrative penalty or sanction shall be payable to the Board as a

civil debt constituting an executive title for the purposes of Title VII of

Part I of the Second Book of the Code of Organization and Civil

Procedure as if the payment of the amount of the fine had been ordered

by a judgement of a court of civil jurisdiction.

The Board shall also have the authority to publish in daily

newspapers and in the broadcasting media the names of those

cooperative societies which have become subject to administrative

penalties and sanctions imposed on them by the same Board as

provided for in these regulations and in the Act

Provided that the Board shall use this authority only to give

public notice of such contravention, and during such time as the

said contravention persists.

(1) The taking of proceedings for the use and application

of administrative penalties and sanctions by the Board with respect

to a contravention as outlined in these regulations shall preclude

the taking of criminal proceedings against the same person in

respect of the same contravention.

(2) The provisions of these regulations shall not apply in those

cases where criminal proceedings are commenced in respect of a

contravention included in the Schedule.

The Board may, in exceptional circumstances that a public

health emergency is declared or regulations come into force in

accordance with article 26 of the Public Health Act, during the period

when the public health emergency is in force or the regulations are in

force suspend the period when it imposes penalties and administrative

sanctions established in the Schedule resulting from non-compliance

with articles 48, 64(1) and 65(1) of the Act up to a maximum of

seventy-five (75) days until the public health emergency is lifted by the

Superintendent of Public Health or the regulations are no longer in

force.