Cap. 387 Art. 79Arbitration chambers.

(1) Notwithstanding any provision of this or any other law, the provisions of this article shall have effect with regard to the matters regulated thereby.

(2) Any individual, or individuals, whether considered to be resident in Malta or not for the purposes of any law, may constitute an Arbitration Chamber in the form of a limited liability company under the Companies Act: so however that the provisions of the said Act shall have effect in relation to an Arbitration Chamber as amended, modified or substituted by the provisions of this article. All such companies shall comprise as part of their name the words "Arbitration Chamber".

(3) The objects of an Arbitration Chamber shall be limited to providing services of representation referred to in article 18 to parties in international commercial arbitration under Part V of this Act, and services as arbitrators in such arbitration: Provided that but the receipt of incidental income connected with the said services shall not be deemed to infringe this rule.

(4) Each member of an Arbitration Chamber shall also be a director thereof, and each director shall be responsible at law for the services rendered by the Arbitration Chamber pursuant to subarticle (3). On the death of a member or when such member is disqualified from acting as a director of a company under the provisions of article 142 of the Companies Act, the share belonging to such member shall be redeemed, and if following such redemption the Arbitration Chamber fails to meet the requirements of the Companies Act regarding the constitution of a company, then the Arbitration Chamber shall be liquidated.

(5) The Secretary of the Chamber shall be a person who, for an uninterrupted period of three years, has been any of the following:

(i) a person holding the warrant of advocate under the Code of Organization and Civil Procedure;

or

(ii) a person holding the warrant of a certified public accountant or a certified public accountant and auditor under the Accountancy Profession Act; or

(iii) an associate, member, or fellow of a professional institute or similar body recognised by the Centre for the purposes of this article; or

(iv) is otherwise recognised by the Centre as a person comparable to any of the persons aforesaid.

(6) The liquidation of an Arbitration Chamber shall be carried out by its secretary under the supervision of the Centre, and the Centre shall be entitled to:

(a) nominate a secretary solely for the purpose of this subarticle, where the Arbitration Chamber does not have a secretary or where the secretary of the Arbitration Chamber is not properly conducting the liquidation;

(b) declare that an Arbitration Chamber has been liquidated and fully wound up, whereupon the Arbitration Chamber shall be struck off the register by the Registrar of Companies without the need of any further formalities.

(7) An Arbitration Chamber shall be registered with the Centre in accordance with such rules as may be made by the Centre for the purposes of this subarticle and may not commence its activities until it has been so registered. Registration shall be subject to such annual or other fees as may be established by the Centre.

(8) No duty shall be payable under the Duty on Documents and transaction or operation whatsoever relating to an Arbitration Chamber or to its shares.

(10) For the purposes of the Income Tax Act and the Income

Tax Management Act, the rate of income tax chargeable upon any distributions made by an Arbitration Chamber shall be that contemplated in article 56(8) of the Income Tax Act, and a member thereof if not resident in Malta receiving such a distribution shall be entitled to the benefit contemplated in article 48(4)(a) of the Income Tax Management Act.

(11) The Centre may make rules for the better carrying out of any of the provisions of this article and may, in particular, but without prejudice to the generality of the foregoing, by any such rules-

(a) provide for the registration of an Arbitration Chamber in accordance with subarticle (7); and

(b) regulate the conduct, duties and obligations of an Arbitration Chamber.