The Founder

One or more persons, whether natural persons or bodies corporate, may be the Founders.

Founders have rights and obligations. Where the Private Foundation Charter grants the Founder full power, the Founder shall have the right and power to adopt the Private Foundation Regulations, amend them, freely appoint and remove the Private Foundation Council, the Supervisory Board and the Beneficiaries, act as adviser, protector or beneficiary, revoke the creation of the Private Foundation or any transfer made to it, receive and demand Statements of Account , redomicile the Private Foundation and/or dissolve it.

The Private Foundation’s assets constitute an estate separate from the Founder’s personal/corporate assets.

  The Private Foundation Council

A Private Foundation is managed by a Private Foundation Council, which is charged with the responsibility of maintaining the Private Foundation’s aims and objectives. The Private Foundation Council could be a body corporate or individuals.

The Private Foundation Council has the obligation to act with diligence and to obtain authorization from the Supervisory Board (if one is appointed) and to render account of its administration to the Founder and to the Beneficiaries.

  The Protector

The Law on Private Foundations refers to “supervisory bodies” that are made up of natural persons. Such bodies generally consist of one or more persons referred to as the “Supervisory Board”.

In practice, the Supervisory Board is usually the client or someone that he/she trusts. The responsibilities of the Supervisory Board are specified in the Private Foundation Charter. Which include, but are not limited to, the supervision of the Private Foundation Council.

 The Beneficiaries

The Private Foundation’s aims and objectives are generally for the benefit of the Private Foundation’s “Beneficiary” or “Beneficiaries”. Such Beneficiaries have the right to receive the earnings or other interest in the Private Foundation Assets, and to receive the Private Foundation Assets as set down in the Private Foundation Charter.

• The beneficiaries may be natural persons, bodies corporate institutions or charities.
• The beneficiaries are not the Private Foundation’s owners or creditors.

  A Private Foundation's Assets Constitue an Independent Estate

The contributions made to the Private Foundation and it’s earning may not be attached or be the object of any precautionary action or measure, save for obligations incurred or for damages caused upon achievement of the Private Foundation’s aims and objectives, or for the beneficiaries legitimate rights.

The Private Foundation’s assets may not be used to answer for the Founders obligations nor for those of the Beneficiaries, nor for those of any person, whether or not involved with the Private Foundation.

The Beneficiaries shall have no right to revoke the creation of or the transfers made to the Private Foundation.

  A Private Foundation is Protected Against the Founder's Creditors

Assets contributed to the Private Foundation, constitute assets that are legally separate from the Founder.

  A Private Foundation is Created as a Body Corporate

The Netherlands Antilles grants corporate existence to a Private Foundation. Consequently, a Private Foundation may acquire and own property of all kinds, incur obligations and be a party in judicial proceedings.

  A Private Foundation May Not Have Business Objectives

A Private Foundation may not by law engage directly in business but may carry out portfolio investment and holding activities, which are not considered an enterprise for that purpose. Thus, a Private Foundation may derive earnings from the sale of real property, it may have cash deposits, it may lend money and it may invest in shares of private companies, public companies, bonds etc.

  A Private Foundation May Be Revocable

The Founder may revoke the creation of a Private Foundation in any of the following circumstances: Where there is just cause for the revocation in accordance with relevant provisions of the Civil Code of the Netherlands Antilles.

  A Private Foundation is Exempt from All Taxes

Provided that the contributions received by a Private Foundation and the income from such contributions originate outside that fiscal territory of the Netherlands Antilles, a Private Foundation shall pay no taxes.

 

Disclaimer: While every effort has been made to ensure that the details contained herein are correct and up-to-date, this information does not constitute legal or other professional advice. We do not accept any responsibility, legal or otherwise, for any error or omission. Please contact us to clarify any questions you may have.