A5 Foundation revocation I Foundation amendment I Mandate agreement
In principle, the founder can grant himself design rights such as revocation of the foundation and amendment of the foundation and conclude mandate agreements with organs of the foundation. It is problematic if the founder thereby becomes the de facto organ or beneficial owner.
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Once the foundation has come into being, the founder’s will is laid down by law.
The founder can no longer exert any fundamental influence on the foundation unless the foundation deed contains a reservation of amendment or revocation. Under Liechtenstein law, the founder and the foundation are separate and two independent legal entities. In principle, however, any influence exercised by the beneficiaries on the foundation is harmless.
The exercise of design rights by means of reservations of amendment or revocation or mandate agreements must not make the founder the de facto body of the foundation.
If the founder can directly or indirectly dispose of the foundation’s assets and its income, he is considered to be the beneficial owner.
A foundation controlled in this way can be regarded as a void sham transaction with the consequence of the deprivation of legal personality.
An amendment of the foundation purpose and other contents of the foundation deed by foundation bodies is permissible within a limited scope in the event of a change in the framework conditions.
In addition, the foundation supervisory authority and all parties involved in the foundation can request changes from the ordinary courts and have them ordered by the judge.
