The Co-operative Societies Act 2001 - a comment on the recent reforms in Maltese co-operatives law

Abstract

The principal legislation governing co-operative societies in Malta is the Co-operative Societies Act which was passed by Parliament in 2001. It was brought into force in stages the following year. The 2001 Act has repealed and replaced the co-operative legislation that preceded it, namely the Co-operative Societies Act 1978. This recent reform and the introduction of new legislation for co-operatives offers, in the view of the writer, a timely opportunity for a fresh look at the subject of co-operative law, and how co-operatives in Malta are or should be regulated in the 21st century. This paper reviews some of the main features, innovations and improvements in the new Act and offers a brief analysis of the significance and impact of the transition from the now repealed Act of 1978 Act to the 2001 Act. It attempts to place this transition within the context of other recent developments in Maltese corporate law especially the adoption of the Companies Act of 1995. Highlighting certain elements in the legislation that tend to be overlooked, the paper explores the motivation behind the recent reforms.