The Accountant – Issue 2 of 2021 (MIA Publication)

The Malta Institute of Accountants has recently launched a comprehensive review of its governance documents, comprised of the Statue and Bye-Laws, to bolster the participation of members in all matters of governance. For the Statute to be amended, a two-thirds majority vote of the members present during a general meeting is required. On the other hand, the Statute gives the power to Council to amend the Bye-Laws. For this reason, the Council proposed the entrenchment of all governance-related matters to be incorporated into the Statute.

An internal working group was set up to re-draft all relevant documents, making sure that matters related to the Institute’s governance, including those forming part of the Bye-Laws, are incorporated in the Statute to reflect a more transparent modus operandi and to respect the rule of law, at all times.

Besides the incorporation of the relevant Bye-Laws into the Statute, the review also introduced further clarifications of articles and suggested the removal of duplicate or redundant parts in the documents.

Most of the amendments pertained to Article 10 in the Statute, which is devoted to the governing body of the Institute, that is, the Council, and included the addition of new measures to ensure good governance and integrity of the Council.

Another set of changes dealt with the disciplinary proceedings introducing updates to strengthen the established processes. A major amendment aligned the composition of the Appeals setup with that of the Disciplinary setup. The main difference between the two setups is that the former is wholly appointed by members at a General Meeting to ensure independence from the functions of the Council.

The proposed amendments to the Statute were presented to members in an Extraordinary General Meeting (EGM) on 24 May, providing members with the broader context within which the changes were taking place. The members participating in the EGM were then invited to vote on the amendments, which were cited in a series of resolutions. All changes were approved.

The revision of the Statute triggered the revision of the Members’ Bye-Law as well as the Students’ and Disciplinary Proceedings Bye-Laws. The upgrade now brings the Bye-Laws and the Statute much closer together in terminology and scope, to minimise any potential misinterpretation or ambiguity. Consequently, there is now wider cross-referencing between the documents.

The disciplinary system is core to the work of the Institute and this exercise led to a rethink of the entire process, putting it on a more solid foundation heading into the future. As a result of this, the Disciplinary Bye-Law has been revamped and restructured.

As a members’ body, the purpose of the Institute is ultimately to give greater voice to the professionals it represents. The amendments to the Statute and Bye-Laws give members a bigger and more direct role in governance, allowing the Institute to better respond to their needs.

The revised Statute and Bye-Laws along with the detailed amendments can be accessed here.