Is 50%+ entitling to do whatever one wants? Under Malta’s corporate law framework, mainly the Maltese Companies Act, Cap. 386 of the Laws of Malta (“Act”), the majority rule is the fundamental principle to arrange the will formation […]Read more
The Maltese legislative framework provides for the establishment of foundations which possess their own legal personality distinct from that of its founders or beneficiaries. In Malta, foundations are defined as an organisation consisting of a universality of things by a founder or founders whereby assets are destined either for the fulfilment of a specified purpose and/or for the benefit of a named person or a class of persons and are to be administered by a designated person or persons. Moreover, should the administrators be established outside Malta, the foundation is required to have a person resident in Malta appointed as its local representative.
Foundations may be constituted either as private or purpose foundations. Purpose foundations are constituted for the purpose of promoting a social purpose or a public purpose. On the other hand, private foundations may be constituted for the promotion of any lawful purpose which would not be categorised as a public benefit.
As required by law, foundations are to be constituted through a deed of foundation which is required to include several mandatory provisions including details on the foundation’s name, its registered address in Malta and the purposes or objects for its creation. The purposes or objects designated in the deed of foundation may be either for a charitable, non-charitable, or for the benefit of a person or a class of persons. As a minimum, foundations being established for a public benefit purpose must be constituted with assets amounting to at least EUR 233 while other foundations must be formed with assets amounting to at least EUR 1,165.
Establishment of Foundations
The deed of foundation by which a foundation is constituted is required to be made in the form of a public deed or a testamentary will. As public deeds are required to be entered into in front of a notary, we offer to act as a liaison for our clients with a notary of their choice or introducing the client with an established notary for the preparation of the deed of foundation. We can also assist you in the drafting and reviewing of the deed.
Moreover, we would also handle communication with the Malta Business Registry (“MBR”) and the drafting of documentation for the submission of the necessary forms and supporting documentation required in order for the foundation to be constituted.
We can assist you with the entire process for the establishment of your foundation.
Administration of Foundations
Foundations are required to have their administration designated to a particular person or persons. Administrators are generally responsible for maintaining possession and control of the property of the foundation while also maintaining adequate records of the assets and liabilities of the foundation.
We offer assistance with the administration of foundations and their property, ensuring that the foundation operates in compliance with applicable laws and with the wishes of the founders. Further to this, we shall also monitor and submit the statutory submissions to be made by the foundation, including any submissions to be made on behalf of the ultimate beneficial owners of the foundation.
Additionally, where the foundation designates administrators established outside of Malta, we also offer to act as local representatives for the relevant foundation.
All foundations which are constituted in Malta are required to have a registered office address located in Malta. This ensures that any official correspondence sent by the competent authorities is received by the administrators and council members of the foundation. Additionally, the registered address of the foundation acts as a central record-keeping facility for the foundation.
We offer the possibility of designating our premises as the registered business address of your foundation. Apart from providing you with a registered business address, we will also handle and forward as necessary any correspondence received at the registered office while always ensuring that your affairs are kept confidential at all times.
Supervisory Council Members & Protectors
The terms of the foundation may provide for the establishment of a supervisory council or for the office of the protector. The members forming part of the supervisory council or the protector act as overseers to the administrator by supervising the actions taken by the administrator. The deed forming the foundation may also restrict certain actions of the administrator to be subject to the express consent of the members of the supervisory council or the protector.
We offer our services to be appointed as either one of the members of the supervisory council or to be appointed as the protector of a foundation. Once we are appointed as protectors or members of the supervisory council, we will ensure that your foundation is supervised in a manner leading to the attainment of the foundation’s purpose and your wishes.