Other Foundations

Foundations are characterized among other things by owning a specifically defined capital, by having no owners, instead they are independent, and by having objects of awarding or otherwise spending their capital for one or more specific purposes.

Foundations and independent institutions are in other respects used in many different contexts and with various kinds of objects. Some of the legal framework for such foundations – including charitable foundations – is available in part in the general foundation legislation and in part in a number of individual provisions or in specific legislation within the various areas.

 

HjulmandKaptain has wide experience in advising on legal matters pertaining to the foundation law in many different contexts, including the following:

 

  • Establishing foundations and independent institutions;
  • covering and determining the body of rules applying to specific foundations;
  • preparing specific drafts of trust deeds;
  • advising on foundations’ possibilities of investing their capital;
  • negotiating with the Danish Department of Civil Affairs as foundation authority in case of alterations to the affairs of an existing foundation;
  • merging or dissolving foundations.

 

This area of expertise is extremely complex, presenting many potential problem definitions that have become increasingly more important concurrently with the institution of proceedings on directors’ liability, also in respect of boards of trustees.

 

By means of our counselling, HjulmandKaptain can contribute to securing that foundations and their boards of trustees operate within the framework of legality and thereby avoid incurring liability or being disciplined by the foundation authority.

See also