The Maltese co-operative regulatory framework : analysing the alternatives

Abstract

Purpose: The objectives of this research study are to identify the major areas needing reform in the Maltese co-operative regulatory framework and to evaluate possible alternatives so as to select those to be recommended. Design: Objectives were achieved by an analysis of the Maltese co-operative legal framework as well as by the conduct of semi-structured interviews with 20 cooperative experts having diverse experiences in the Maltese co-operative movement. Findings: The findings indicate a general yearning for co-operative regulation to be less paternalistic and to allow greater financial and operational autonomy to individual cooperatives and the movement as a whole. However, results highlight the importance of upholding the distinct co-operative identity encompassed by the co-operative values and principles. Conclusions: This study concludes that it is the areas of co-operative financing, the distribution of returns and the role of co-operative institutions which need most to be addressed. Contrastingly, the provisions regulating the definition of co-operatives, membership, co-operative governance and co-operative accounting and auditing call for fine-tuning. Value: It is hoped that this study contributes to the enhancement of co-operative law. Appropriate changes are likely to help promote the growth of the Maltese cooperative movement. Recommendations include, but are not limited to, amending the provisions relating to the redemption of capital upon member exit, the removal of the asset lock on ploughed-back surpluses, and updating regulations regarding Apex and the Central Co-operative Fund.