S.L. 386.33 Art. 3Purpose and activities of a sports private limited liability company.              Cap. 626.        Cap. 626.

(1) A company may be formed or constituted as a sports private limited liability company which, in that capacity, shall constitute the club registered in the Register and shall be responsible for its management, operation, and administration.

(2) The economic activities of a sports private limited liability company shall be restricted solely to the management, administration, and operation of a club, and to such other activities which are strictly related thereto.

(3) A sports private limited liability company shall also be entitled to:

(a) acquire and hold shares or interests only in companies or entities whose activities are directly related to, support or are ancillary to the sporting operations or objectives of the sports private limited liability company, including economic activities which do not form part of the company’s primary sporting purpose, to generate revenue in support of such purpose, provided that all such activities comply with applicable laws and regulations and as long as the company obtains the due authorisation of the Authority of Integrity in Maltese Sports;

(b) borrow, raise or secure the payment of money for the purpose of, or in connection with the business of the sports private limited liability company;

(c) purchase, take on lease, exchange, acquire by any title any property and any right or privileges or easements over, or in respect of any such property necessary to carry on the business of the sports private limited liability company;

(d) subscribe for, acquire, hold, or dispose of shares, stocks, debentures, debenture stock, bonds, notes, options, interests in, or other securities of any company, corporation, entity, partnership, or other body of persons, provided that such body is engaged in activities which are directly related to, support, ancillary to, or constitute permitted economic activities undertaken in support of the sports private limited liability company’s sporting purpose, and subject to compliance with applicable laws and regulations;

(e) receive from any assets held by the sports private limited liability company pursuant to any of the provisions of this regulation, dividends, capital gains, interest and any other income derived from investments including income or gains on their disposal, rents, royalties and similar income whether arising in or outside Malta, and profits or gains attributable to a permanent establishment, including a branch, whether situated in or outside Malta;

(f) carry out activities ancillary and related to the proper execution of a sports private limited liability company’s activities.

(4) A sports private limited liability company shall be prohibited from:

(a) owning shares, or being in any other way related, directly or indirectly, to another sports private limited liability company or to a club registered with the same National Association, other than the one with which the particular sports private limited liability company is primarily engaged;

(b) engaging in any gaming or gambling activities:

Provided that a sports private limited liability company shall not be precluded from benefiting by way of sponsorship or similar funding through granting a form of promotion to licenced gaming;

(c) operating as a holding company by acquiring or maintaining controlling interests in entities whose principal activities are unrelated to the company’s core business;

(d) granting, issuing, advancing, or otherwise making available, whether directly or indirectly, any loan, credit facility, advance, guarantee, security, or other form of financial assistance to any person.

(5) Shareholders who, whether individually or acting in concert, are able to exercise significant influence over a sports private limited liability company shall not hold, directly or indirectly, any ownership interest, management role, or other position of influence in another club or sports private limited liability company participating in the same sport under the same National Association, where such interest may give rise to a conflict of interest or a perception of compromised sporting integrity. The assessment of such conflicts shall fall within the remit of the Authority for Integrity in Maltese Sport in accordance with the Sports Governance and Integrity Act.

(6) The Authority for Integrity in Maltese Sport shall have the power to monitor compliance by sports private limited liability companies with their lawful objects, applicable law, and governance obligations. Where non-compliance to the law is identified, the said

Authority shall take such steps as are expressly permitted in accordance with the Sports Governance and Integrity Act.