                      MALTA DEVELOPMENT CORPORATION _g CAP. 202.              1
CHAPTER 202
MALTA DEVELOPMENT CORPORATION ACT
To make provision for the establishment of a Development Corporation for Malta, to
determine its functions and powers and to provide for matters ancillary or incidental thereto.
(1st November, 1967) *
(1st May, 1968) †
Enacted by ACT XXVII of 1967, as amended by Acts: LIX of 1975, XXII of 1976, XI of 1977,
VIII of 1982, XIII of 1983 and XV of 1995.
ARRANGEMENT OF ACT
* See  section 1 of the Act as originally enacted, part of which has been omitted under the Statute Law
Revision Act, 1980, and Legal Notice 70 of 1967. 
† See  Legal Notice 33 of 1968.
  Sections
Part I.  Preliminary  1-2 
Part II.  Establishment, Conduct of Affairs and Functions of
the Corporation
3-9
Part III.  Financial Provisions  10-16 
Part IV. Officers and Servants of the Corporation  17-18 
Part V.  Miscellaneous  19
SCHEDULE  
Provisions with respect to the Board of Directors 
  2        CAP. 202. _h               MALTA DEVELOPMENT CORPORATION  
PART I
PRELIMINARY
Short title. l. This Act may be cited as the Malta Development
Corporation Act.
Interpretation. 
Amended by: 
XI. 1972.2;
VIII. 1982.2.
2. In this Act, unless the context otherwise requires - 
"the Board" means the Board of Directors of the Corporation
established by section 4 of this Act;
"the chairman" means the Chairman of the Board appointed
under this Act;
"the Corporation" means the Malta Development Corporation
established by section 3 of this Act;
"director" means a director of the Corporation appointed under
this Act;
"financial year" means a period of twelve months ending on the
31st December;
"the Gazette" means the Government Gazette;
"the Government" means the Government of Malta;
"the House" means the House of Representatives of Malta; 
"industry" means any enterprise conducive to development of the
economy of Malta whose object is to produce or provide goods or
services for sale or hire inside and outside Malta; and "industrial"
shall be construed accordingly;
"Malta" has the same meaning as is assigned to it by section 124
of the Constitution of Malta;
"Minister" means the Minister responsible for industry and
includes, to the extent of the authority given, any person authorized
in that behalf for any purpose of this Act;
"public officer" has the same meaning as is assigned to it by
section 124 of the Constitution of Malta.
PART II
ESTABLISHMENT, CONDUCT OF AFFAIRS AND FUNCTIONS OF 
THE CORPORATION
Establishment of 
Corporation.
3. (1) There shall be a body, to be called the Malta
Development Corporation, for the purpose of securing development
of the economy of Malta in accordance with the provisions of this
Act.
(2) The Corporation shall be a body corporate having a distinct
legal personality and be capable, subject to the provisions of this
Act, of entering into contracts, of acquiring, holding and disposing
of any property for the purpose of its functions, of suing and of
being sued, and of doing all such things and entering into all such
transactions as are incidental or conducive to the exercise or
                      MALTA DEVELOPMENT CORPORATION _g CAP. 202.              3
performance of its functions under this Act.
Conduct of affairs 
of Corporation. 
Substituted by: 
LIX.1975.2.
4. (1) The affairs and business of the Corporation shall be the
responsibility of and shall be conducted by a board of directors;
but, save as aforesaid and subject to the provisions of this Act and
to any directions of the Board, the executive conduct of the
Corporation, its administration and organization and the
administrative control of its officers and servants, shall be the
responsibility of the Chairman of the Board, who shall also have
such other powers as may from time to time be delegated to him by
the Board.
(2) The Board shall consist of such number of directors, being
not less than five, of whom one shall be appointed to be chairman
and another to be deputy chairman, as the Minister may from time
to time appoint.
(3) The chairman and all except three of the other directors
shall be appointed by the Minister from amongst persons, not being
public officers or officers or servants of the Corporation, appearing
to him to have had experience of and shown capacity in matters
relating to industry, trade, finance, science, the professions, or
organizations of employers or of workers; the deputy chairman may
be appointed by the Minister from amongst the officers of the
Corporation or from amongst the persons aforesaid, and the other
two directors shall be appointed by the Minister from amongst
public officers.
(4) The chairman and the other directors shall be appointed for
such term and under such terms and conditions as the Minister may
deem proper; and they shall be eligible for re-appointment.
(5) The Minister may, in respect of any director other than the
chairman, appoint a person having the qualifications required by
this Act to be the alternate director. A person so appointed may
attend any meeting of the Board not attended by a director to whom
he is alternate, or attended by such director acting in place of the
chairman, and at any such meeting the alternate director shall have
all the powers and duties of a director.
Disqualification 
for appointment, 
removal and 
resignation of 
directors.  Amended 
by: XXII.1976.4.
5. (1) No person shall be appointed or shall remain a director
or alternate director who -
( a ) is a member of the House;
( b ) under the law of any country has been adjudged
bankrupt or made a composition with his creditors or
is legally incapacitated or has been convicted of a
crime affecting public trust or of theft or of fraud or of
knowingly receiving property obtained by theft or
fraud.
(2) Without prejudice to the provisions of subsection (1) of this
section, a director or alternate director may be relieved of his office
by the Minister if he becomes incapable of carrying on his duties or
is guilty of serious misconduct in relation to his duties or fails to
attend the meetings of the Board without reasonable cause for such
period as the Minister may, in the circumstances, consider
  4        CAP. 202. _h               MALTA DEVELOPMENT CORPORATION  
sufficient for the purposes of this subsection; and, in respect of a
director or alternate director appointed from among public officers,
a person shall cease to hold that office upon ceasing to be a public
officer.
(3) A director or alternate director, other than a person
appointed from among public officers, may resign his office by
notice in writing to the Minister.
Absence or 
incapacitation of 
chairman and 
vacancy of post. 
Substituted by:    
LIX. 1975.3.
6. Where the chairman is absent from Malta or temporarily
incapacitated from performing the functions of his office, or is on
vacation, and where the post of chairman is temporarily vacant, the
deputy chairman shall act in place of the chairman and shall
exercise the powers and perform the functions of the chairman.
Provisions with 
respect to the 
Board.
7. The provisions of the Schedule to this Act shall have effect
with respect to the Board.
Functions of the 
Corporation.
8. (1) Without prejudice to any other provision of this Act, it
shall be the function of the Corporation - 
( a ) to investigate, formulate and carry out projects for the
establishment, continuation, expansion or
improvement of industrial enterprises conducive to
development of the economy of Malta;
( b ) to encourage and promote the participation of private
capital, both domestic and foreign, in the development
of manufacturing, tourist, agricultural, fishing and
other industrial enterprises;
( c ) to render assistance and advice in the formulation and
execution of industrial projects by providing technical
assistance on managerial, engineering, accountancy
and other matters requiring technical skill, and to
encourage the development of management and
technical skills;
( d ) to hold and administer, and if and when it thinks fit to
realise, the assets it may hold from time to time;
Cap. 53.    
Cap. 159.
( e ) to perform the functions devolving on the Corporation
pursuant to the Encouragement of New Industries Act
and the Aids to Industries Ordinance;
( f ) to act by agreement with the Government as agent for
implementing the policy of the Government in respect
of grants and of loans on special terms to industrial
enterprises;
( g ) to advise the Minister on any matter relating to the
operation and purposes of this Act which the Minister
may from time to time refer to the Corporation.
(2) In the exercise of its functions under this Act, the
Corporation may - 
( a ) make all forms of investment, including direct
ownership of industrial enterprises, grant loans and
advances to industries, subscribe, underwrite or deal in
shares and debentures of companies, guarantee loans
                      MALTA DEVELOPMENT CORPORATION _g CAP. 202.              5
and advances to industries, and manage and control
industrial enterprises:
          Provided that in any such transaction as aforesaid the
investment or liability of the Corporation shall be
made or assumed at fair risk;
( b ) acquire, sell or otherwise dispose of or lease land for
the purpose of economic development;
( c ) lay out or lay out and develop industrial estates for
sale or other manner of disposal or lease;
( d ) undertake feasibility studies, including financial and
economic analysis of projects, in its search for new
industries or in the improvement or further
development of existing industrial enterprises;
( e ) generally do all such things as may be incidental or
conducive to the performance of its functions.
(3) The Corporation may, with the approval of the Minister,
exercise its functions under this Act through the agency of other
persons, and may act as agents or otherwise on behalf of other
persons.
Powers of and 
reports to the 
Minister.
9. (1)  The Minister may, in respect of matters that appear to
him to affect the public interest, from time to time after
consultation with the Corporation give to the Corporation
directions of a general character, not inconsistent with the
provisions of this Act, on the policy to be followed by the
Corporation in carrying out its functions under this Act, and the
Corporation shall, as soon as practicable, give effect to all such
directions.
(2) The Corporation shall, not later than four months after the
end of each financial year, make a full report to the Minister on the
exercise and performance by it of its functions during that year, and
the Minister shall as soon as practicable cause a copy thereof to be
laid on the Table of the House.
(3) The Corporation shall afford to the Minister facilities for
obtaining information with respect to the property and activities of
the Corporation, and furnish him with returns, accounts and other
information with respect thereto, and afford him facilities for the
verification of information furnished in such manner and at such
times as he may reasonably require.
PART III 
FINANCIAL PROVISIONS
Capital of the 
Corporation. 
Amended by: 
XIII. 1983.5.
10. (1) The initial capital of the Corporation shall be one
million liri paid in by the Government. Further capital not
exceeding nine million liri shall be raised in such manner as the
Minister responsible for finance may, on the advice of the
Corporation, from time to time determine:
  6        CAP. 202. _h               MALTA DEVELOPMENT CORPORATION  
  Provided that the capital of the Corporation shall be held
entirely by the Government.
(2) The Corporation shall, in return for any moneys and any
property rights or interests from time to time paid or transferred to
the Corporation by the Government by way of subscription to the
capital of the Corporation, issue to the Minister responsible for
finance on behalf of the Government capital stock in the amounts
of any moneys so paid and received and in an amount equal in
nominal value to the amount agreed between the Corporation and
the Government as representing the value of any property rights
and interests so transferred.
Borrowing powers.  
Amended by: 
XIII. 1983.5
11. (1) The Corporation may, with the approval of the
Minister responsible for finance, from time to time borrow such
sums as it may require for the purpose of meeting any of its
obligations or discharging any of its functions.
(2) Notwithstanding the provisions of subsection (1) of this
section, the Corporation may without further authority exercise its
borrowing powers for the purpose of borrowing temporarily, by
way of overdraft or otherwise, sums not exceeding in the aggregate
one hundred thousand liri at any one time outstanding.
(3) For the purpose of securing any sums borrowed by the
Corporation or any liability assumed by the Corporation in the
exercise of its functions, the Corporation may hypothecate or
charge its undertaking or property, or any part thereof, and may
issue debentures, debenture stock, bonds or other securities,
whether outright or as security for any debt, liability or obligation
of the Corporation or of any third party.
Guarantee by 
Government of 
borrowings of 
Corporation.
12. (1)  The Minister responsible for finance may, with the
approval of the House, guarantee on behalf of the Government, in
such manner, to such extent and on such conditions as he may deem
proper, the repayment of the principal of, and the payment of
interest and other charges on, any authorized borrowings of the
Corporation.
(2) As soon as practicable after any guarantee is given under
this section, the Minister responsible for finance shall cause to be
laid on the Table of the House a statement indicating the amount
and terms thereof.
(3) Any moneys payable by the Government in pursuance of
any of the provisions of this section shall be a charge on the
Consolidated Fund.
Reserve fund. 
Amended by: 
XIII. 1983.5.
13. (1) The Corporation shall establish a reserve fund.
(2) The Corporation shall at the end of each financial year until
the reserve fund amounts to one million liri, carry to the reserve
fund, out of its profits for that year and before declaring any
dividend, such sum being not less than twenty-five per cent of such
profits as the Minister responsible for finance shall after
consultation with the Corporation determine, and shall pay any
remaining profits by way of dividend on the stock for the time
                      MALTA DEVELOPMENT CORPORATION _g CAP. 202.              7
being issued.
(3) The reserve fund shall be managed by the Corporation in
such manner as it may determine; but no part of such fund shall be
applied otherwise than for the purposes of the Corporation.
Income to cover 
expenditure.
14. It shall be the duty of the Corporation so to conserve its
assets and exercise and perform its functions under this Act as to
ensure that the total revenues of the Corporation are sufficient to
meet all sums properly chargeable to its revenue account,
including, without prejudice to the generality of that expression,
depreciation and the servicing of loan indebtedness.
Annual estimates 
and accounts of the 
Corporation.
15. (1) The Corporation shall in each financial year cause to
be prepared and shall adopt estimates of income and expenditure of
the Corporation for the following financial year.
(2) The Corporation shall cause to be kept proper accounts and
other records in respect of its operations and transactions, and shall
cause to be prepared a statement of accounts in respect of each
financial year.
(3) The accounts of the Corporation shall be audited by an
auditor or auditors approved by the Minister and appointed by the
Corporation from year to year.
(4) The Corporation shall, not later than four months after the
end of each financial year, cause a copy of a statement of its
audited accounts to be sent to the Minister and to the Minister
responsible for finance together with a copy of the report of the
auditor or auditors with respect to such statement and the Minister
shall without delay cause such statement and report to be published
in the Gazette.
Exemption from 
certain taxes and 
duties.
Substituted by:
XV.1995.9.
16. The Corporation shall be exempt from any liability for the
payment of income tax and duty on documents under any law for
the time being in force.
PART IV
OFFICERS AND SERVANTS OF THE CORPORATION
Officers and 
servants of the 
Corporation. 
Substituted by: 
LIX. 1975.4.
17. (1) The Corporation shall employ at such remuneration
and upon such terms and conditions as the Board may, with the
approval of the Minister, determine, a secretary and such other
officers and servants as may from time to time be necessary for the
due and efficient exercise of its functions.
(2) The secretary and the other officers and servants of the
Corporation shall not have any direct or indirect interest in any
contract made or proposed to be made by the Corporation or in any
enterprise which has or proposes to have any business relations
with the Corporation or any relations involving any form of
assistance from the Corporation or any recommendation or advice
by the Corporation relating to any assistance, exemption or grant of
a right.
  8        CAP. 202. _h               MALTA DEVELOPMENT CORPORATION  
Superannuation 
schemes for 
officers and 
servants.
18. (1) The Corporation may, with the approval of the
Minister responsible for finance, establish a scheme or schemes for
the payment to its officers or servants, or their dependants, on their
retirement, death or injury, of pensions, gratuities or other like
benefits.
(2) Provision for such pensions, gratuities or other like benefits
may be made either by contributory or by non-contributory
arrangements or partly by one and partly by the other.
PART V
MISCELLANEOUS 
Winding up of 
Corporation.
19. The Corporation shall not be wound up except by or under
the authority of an Act of Parliament.
SCHEDULE 
_gSection 7_h
PROVISIONS WITH RESPECT TO THE BOARD OF DIRECTORS
1. The Board may act notwithstanding any vacancy among its
members.
2. The quorum at all meetings of the Board shall be half the
number of directors for the time being constituting the Board and
shall in no case be less than three; and in the absence of the
chairman at any meeting of the Board, such director as the directors
present may select shall act as chairman of the meeting.
3. The decisions of the Board shall be by a majority of the
votes of the members present and voting. The chairman of the
meeting (whether or not he is the Chairman of the Board) shall not
have a second or casting vote.
4. The Board shall meet at such times as may be necessary or
expedient for transacting its business, and in any case not less than
twice in every six months. The chairman of his own motion or at
the request of any two of the directors may at any time convene a
meeting of the Board.
5. The Board shall cause minutes of each meeting to be kept
and such minutes shall be confirmed at the next succeeding
meeting. Certified copies of the minutes of any meeting of the
Board shall be forwarded to the Minister on his request.
6. The legal representation of the Corporation shall be vested
in the chairman and/or in such other director or directors as the
Board may by resolution designate. Any such resolution of the
Board shall be published in the Gazette.
                      MALTA DEVELOPMENT CORPORATION _g CAP. 202.              9
7. (1)  A director who is in any way directly or indirectly
interested in a contract made or proposed to be made by the
Corporation or in any enterprise which has or proposes to have any
business relations with the Corporation or any relation involving
any form of assistance from the Corporation or any
recommendation or advice by the Corporation relating to any
assistance, exemption or grant of a right, shall, as soon as possible
after the relevant circumstances shall have come to his knowledge,
disclose the nature of his interest at a meeting of the Board.
(2) Any disclosure made under sub-paragraph (1) of this
paragraph shall be recorded in the minutes of the meeting at which
it is made, and the director -
( a ) shall, after the disclosure, withdraw from the meeting
while that matter is being discussed or decided by the
Board; and
( b ) shall be disregarded for the purpose of constituting a
quorum of the Board for any such discussion or
decision.
(3) The chairman of the meeting shall without delay inform the
Minister of any disclosure made under this paragraph.
8. Any document purporting to be an instrument made or
issued by the Corporation and to be signed by the chairman and by
the secretary on behalf of the Corporation shall be received in
evidence and shall, until the contrary is proved, be deemed to be an
instrument made or issued by the Corporation.
9. The Board may make standing orders regulating its own
procedure generally, and, in particular, regarding the holding of
meetings of the Board, the notice to be given of such meetings, the
proceedings thereat, the keeping of minutes, the custody,
production and inspection of such minutes, and the opening,
keeping, closing and audit of accounts.
10. Subject to the preceding provisions of this Schedule and of
any standing orders made thereunder the Board may regulate its
own procedure.
