Must be incorporated by a "Qualified Person" on behalf
of the founder, and an application for incorporation must be
accompanied by the foundation charter.
At incorporation, the Qualified Person must certify that a
specific Qualified Person will become a member of the foundation
The name of the foundation must end with the word
"Foundation" or its equivalent in a foreign language.
Entry in the Register is conclusive evidence that on the date
set out the foundation was incorporated and the requirements of the
Foundations Law were met.
A foundation cannot engage in commercial trading other than
trading which is incidental to the attainment of its objects.
The Charter must be lodged with the Registrar on incorporation,
and must specify (i) the name of the foundation; (ii) the objects
for which the foundation was established (which can be charitable
or non-charitable or both and can be for the benefit of people or
purposes or both); (iii) the names and addresses of the first
members of the foundation's council; (iv) the details of any
initial endowment; (v) what will happen to foundation assets should
the foundation be wound up and dissolved; and (vi) if it is to be
wound up and dissolved upon the happening of an event or the
expiration of a fixed period of time, details of the event or
A foundation does not have to have an initial endowment.
The Regulations have to establish a Council and provide for the
appointment, retirement, removal and remuneration (if any) of
council members as well as how council decisions are to be
The Regulations need to set out the functions of the council and
if they may be delegated.
The Regulations must have a procedure to ensure that a Qualified
Person is appointed to the council and if that person tries to
resign or is removed, as a matter of law that resignation or
removal will not take effect until immediately before the
appointment of a new Qualified Person.
A foundation must have a Guardian and the Regulations must
provide for that persons appointment and provision as to how the
Guardian can retire, be appointed and be paid (if at all).
The Founder or the Qualified Person can also be the Guardian,
but no other council member can be the Guardian.
The Guardian has to take reasonable steps to ensure that the
council carries out its functions and may require the council to
account to the Guardian for the way it has administered the
foundations assets and acted in furtherance of the foundations
Unless the Regulations provide otherwise, the Guardian has power
to sanction or authorise an action of the council which is not
permitted by the Charter or the Regulations provided the Guardian
is satisfied that the action is in the best interests of the
Foundation and that the council are acting in good faith.
The Council must contain a Qualified Person and must act
honestly and in good faith with a view to the best interests of the
Foundation and exercise the care, diligence and skill that
reasonably prudent persons would exercise in comparable
A beneficiary has no interest in the Foundations assets and
beneficiaries are not owed fiduciary duties by the Foundation or
the Council Members.
Except as specifically provided under the Foundations Law, or by
the Charter or the Regulations, a Foundation is not required to
provide any person (including a beneficiary) with any information
about the Foundation.
Questions arising in respect of a Foundation or the endowment of
a Foundation must be determined in accordance with Jersey law. This
includes questions relation to capacity of the Founder to
incorporate or of any person to endow the Foundation.
The incorporation or endowment of a Foundation is not void,
voidable, liable to be set aside or invalid because of the
incorporation or endowment defeating a claim imposed by the law of
a foreign jurisdiction by reason of a personal relationship with a
founder or person endowing a Foundation or by way of forced
A judgement of a Court outside Jersey which concerns a question
in respect of the Foundation or its endowment shall not be
recognised enforced or give rise to a liability unless the Jersey
Foundations Law has been complied with.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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