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To achieve the objectives effectively and efficiently, four
Sub-committees were formed for the third year of MACM. Each
sub-committee has its own Chairperson who is responsible to
achieve the specific objectives set by the Council.
The sub-committees are:
1.
The Legal & Enforcement Sub-Committee
2.
The Credit Rating System & Insurance
Sub-committee
3.
Information Management System
Sub-committee
4.
Education Programme Sub-committee
1.The Legal & Enforcement Sub-Committee
Various meetings were held with politicians from both sides of
the Maltese political sphere and with other relative
professional bodies, promoting changes to the present
legislation and lobbying for adequate enforcement for such
legislation accordingly.
The various legislative areas discussed during these meetings
were:
The Data Protection Act
The Companies Act (Company Recovery Procedure)
- Company Receiverships, insolvency, distressed
businesses etc.
The Business Promotions Act
- With reference to late payments and changes to provisions
within this new act
The Commercial Code as regards Negotiable Instruments
- And the proposition of a new Dishonoured Cheques Act
The Banking Act
- Relating to Confidentiality, Local Banking practice
In general, all these meetings turned out to be positive and
encouraging, achieving both the necessary awareness of what
should be done in Malta; and the promotion and recommendations
to changes in the existing legislation to the benefit of the
Maltese business community at large.
A positive example is The Company Recovery Procedure – an
amendment to the Companies Act which was passed through
Parliament last February.
Before the introduction of this piece of legislation, a company
in financial straits had to file for bankruptcy procedure
without means of possible recovery. This situation was
detrimental to the shareholders, the employees and the creditors
of the company since a company had only the option of going from
trading to liquidation if it had financial problems. MACM was
instrumental in recommending various clauses and changes to the
original draft of this law as proposed by the Government.
Additionally, MACM is currently working on various other
areas of legislation:
The late business payment, where we are proposing
amendments to our existing law, which today makes reference to
the micro-enterprises only. MACM is proposing to widen this law
to include all businesses as the EU Directive 2000/35/EC reads.
Meetings were held with the Parliamentary Secretary Hon Edwin
Vassallo MP to discuss this specific issue, and a working group
including various stakeholders was formed. MACM will be an
active participant.
The Dishonoured Cheques Act. A Dishonoured Cheques Act
was proposed during a National Seminar organised by MACM on
Friday, 9 May 2003, to which the concerned stakeholders
attended. All these stakeholders agree in principle and recognise that Malta needs such legislation to the benefit of
the Maltese economy at large.
2. The Credit Rating System & Insurance
Sub-committee
Information is power, and technology is the mechanism to
deliver.
A very active and professional sub-committee has been working to
develop and implement a Credit Scoring System.
This sub-committee consists of professional and highly qualified
people coming from various industries. The effective and
efficient automated Credit Scoring System should serve as an
additional tool, to the Members of MACM, to minimize the risk
associated with trade credit, thus avoiding bad debts.
This sub-committee is in negotiations with a reputable insurance
company to provide credit insurance in the Maltese market. A new
concept for the Maltese business community.
3. Information Management System Sub-committee
MACM Members need information pertaining to credit management to analyse better the credit worthiness of their existing debtors
and any potential credit applicants. Therefore, the primary
objective of the IMSS is to satisfy the Members’ needs by
providing effective and timely information.
Thus ensuring the following benefits:
-
Minimising the risk associated with trade credit.
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Avoiding bad debts
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Being consistent in credit decisions.
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Controlling of processes.
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Increasing performance.
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Enhancing long-term customer relationship, thus improving
customer retention.
-
Identifying financially solvent prospects, turning credit
risk into credit rewards.
-
Sustaining profitability.
4. Education Programme Sub-committee
Despite ‘debtors’ represent one of the key assets in the balance
sheets of the majority of organisations trading on credit, the
Maltese labour market lacks trained people in the field of
credit management. MACM in collaboration with MCAST –
Institute of Business & Commerce (Malta) has been accredited by
the Institute of Credit Management (UK) to offer education
programmes leading to a Certificate / Diploma in Credit
Management. Maltese students are now able to attend for courses
and sit for the respective examinations of the ICM (UK) in
Malta. This would make it easier for the Maltese employers to
hire people with the required skills and knowledge to deal with
their credit matters.
Sub-committees for the year 2005 - 2006
Legal
Sub-committee
Dr. Joseph
Chetcuti
Mr. Geoffrey
D. Borg
Chaired by Dr.
Louis Bianchi
Politics
Sub-committee
Mr. Michael
Busuttil
Chaired by Mr.
Hugh Mercieca
Information
Management Sub-committee
Mr. Gaetano
Cordina
Mr. Mario
Delicata
Mr. Antoine
Galea
Chaired by Mr.
Peter Wirth
Education
sub-committee
Mr. Joseph
Dimech
Mr. Joe Falzon
Chaired by Mr.
Peter Wirth
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