EUROPEAN GROUPING OF TERRITORIAL CO-OPERATION ORDER

SUBSIDIARY LEGISLATION 460.23

EUROPEAN GROUPING OF

TERRITORIAL CO-OPERATION ORDER

11th January, 2011

LEGAL NOTICE 8 of 2011.

The title of this Order is the European Grouping of Territorial

Cooperation Order.

In this Order -

''the EC Regulation" means Regulation (EC) No 1082/2006 of

the European Parliament and of the Council on a European

grouping of territorial cooperation as may be amended from time to

time;

"EGTC" means a European grouping of territorial co-operation

formed under the EC Regulation;

"Malta EGTC" means an EGTC which has its registered office in

Malta;

"the Minister" means the Minister responsible for finance;

"statutes" refers to the statutes of a Malta EGTC.

(1) A European grouping of territorial co-operation,

hereinafter referred to as "EGTC", may be established on

Community territory under the conditions and subject to the

arrangements provided for by the EC Regulation.

(2) The objective of an EGTC shall be to facilitate and promote

cross-border, transnational and, or inter-regional co-operation

between its members as set out in Article 3(1) of the EC

Regulation, with the exclusive aim of strengthening economic and

social cohesion.

(3)

An EGTC shall have legal personality.

(4) An EGTC shall have in each Member State the most

extensive legal capacity accorded to legal persons under that

Member State’s national law. It may, in particular, acquire or

dispose of movable and immovable property, employ staff and may

be a party to legal proceedings.

(1) An EGTC shall be governed by a convention concluded

unanimously by its members in accordance with Article 4 of the EC

Regulation.

(2)

The convention shall specify

(a) the name of the EGTC and its registered office, in the

case of a Malta EGTC, which shall be located in Malta

under whose laws at least one of the members is

formed;

(b) the extent of the territory in which the EGTC may

EUROPEAN GROUPING OF TERRITORIAL CO-OPERATION

execute its tasks;

(c) the specific objective and tasks of the EGTC, its

duration and the conditions governing its dissolution;

(d) the list of the EGTC’s members;

(e) the law applicable to the interpretation and

enforcement of the convention, which shall be the law

of Malta in the case of a Maltese EGTC;

(f)

the appropriate arrangements for mutual recognition,

including for the purposes of financial control; and

(g) the procedures for amending the convention, which

shall comply with the obligations set out in Articles 4

and 5 of the EC Regulation.

(1) The statutes of an EGTC shall be adopted on the basis

of the convention by its members acting unanimously.

(2) The statutes of an EGTC shall contain, as a minimum, all

the provisions of the convention together with the following

(a) the operating provisions of the EGTC’s organs and

their competencies, as well as the number of

representatives of the members in the relevant organs;

(b) the decision-making procedures of the EGTC;

(c) the working language or languages;

(d) the arrangements for its functioning, notably

concerning personnel management, recruitment

procedures and the nature of personnel contracts;

(e) the arrangements for the members’ financial

contributions and the applicable accounting and

budgetary rules, including on financial issues, of each

of the members of the EGTC with respect to it;

(f)

the arrangements for members’ liability in accordance

with Article 12(2) of the EC Regulation;

(g) the authorities responsible for the designation of

independent external auditors; and

(h) the procedures for amending the statutes, which shall

comply with the obligations set out in Articles 4 and 5

of the EC Regulation.

(1) In accordance with Article 10 of the EC Regulation, an

EGTC shall have at least the following organs

(a) an assembly, which is made up of representatives of its

members; and

(b) a director, who represents the EGTC and acts on its

behalf.

(2) The statutes may provide for additional organs with clearly

defined powers.

(3) An EGTC shall be liable for the acts of its organs as regards

third parties, even where such acts do not fall within the tasks of

the EGTC.

(1) For the purposes of Article 5(1) of the EC Regulation,

the statutes and any subsequent amendments shall be registered and

upon such registration, the Minister shall as soon as possible cause

the fact of registration to be published by notice in the Gazette.

The notice shall include the full name of the Malta EGTC, the

objectives, members, date of constitution and registered office.

(2) The Malta EGTC shall acquire legal personality on the day

of registration or publication, whichever occurs first.

(3) The Malta EGTC shall ensure that, within ten working days

from registration of the statutes, a request is sent to the Office for

Official Publications of the European Communities for publication

o f a n o t i c e i n t h e O ff i c i a l J o u r n a l o f t h e E u r o p e a n U n i o n

announcing the establishment of the EGTC, with details of its

name, objectives, members and registered office.

(4) An EGTC shall be made up of members located on the

territory of at least two Member States, in the case of a Malta

EGTC, one of which being Malta.

(1) The Minister shall be the competent authority for the

purpose of receiving the notifications and documents under Article

4(4) of the EC Regulation.

(2) The Minister shall be the competent body for the purpose of

prohibiting, under Article 13 of the EC Regulation, any activity

carried on in Malta by an EGTC where such an activity is in

contravention of any legal provisions of a public policy nature or of

any law providing for public security, public health or public

morality, or is in contravention of the public interest in Malta.

(3) The Minister shall be the competent authority for the

purpose of making an application under Article 14(1) of the EC

Regulation.

(4) The Civil Court, First Hall, shall be the competent court for

the purpose of ordering the winding up of a Malta EGTC under

Article 14(1) of the EC Regulation.

(1) A Malta EGTC shall comply with the provisions of

articles 45, 46, 47, 48, 49, 50 and 51 of the Co-operative Societies

Act, regarding accounts and audit, which provisions shall apply

mutatis mutandis and shall be read and construed as if references in

those articles to "society" were references to an EGTC, and

references to "the Board" were read and construed as references to

the Minister under this Order, and with such modifications as are

necessary to accommodate the fact that an EGTC is not a co-

operative society.

(2) A Malta EGTC shall appoint an auditor, which appointment

shall be made in accordance with article 45 of the Co-operatives

Societies Act.

(3) The auditor of a Malta EGTC shall be a person eligible for

appointment as a company auditor under the Companies Act.

The dissolution and winding up of a Malta EGTC shall be

regulated by the provisions of Part IX of the Co-operatives

Societies Act, whose provisions shall apply mutatis mutandis and

shall be read as if -

(a) references to "the Board" were read and construed as

references to the Minister under this Order;

(b) sub-articles (3) and (4) of article 105 shall not apply;

and

(c) references in article 104 to "patronage refund" shall

not apply.

The tasks which a Malta EGTC may carry out without a

Community financial contribution shall be limited to the co-

operation actions listed under Article 6 of Regulation (EC) No

1080/2006.

A Malta EGTC shall not have any member with limited

liability.

Third parties who consider themselves wronged by the acts

or omissions of an EGTC shall be entitled to pursue their claims by

judicial process.