After the legally valid formation of the foundation, the foundation council is responsible for the management and appropriation of the foundation assets in compliance with the intention of the founder and in conformity with the purpose of the foundation. Common-benefit foundations are subject to supervision by STIFA. Foundations subject to supervision and the obligation to appoint an audit authority must comply with the relevant audit and reporting requirements for the duration of their existence. The possibility exists of applying for exemption from the obligation to appoint an audit authority. Private-benefit foundations may also be 1) placed under general supervision and 2) verified within the framework of the new deposition model. Any specified rights to alter the foundation, such as a reserved right of revocation or amendment, may be exercised. During the existence of the foundation, the need may arise to order supervisory measures. Relocation of domicile, dissolution, or liquidation of the foundation are carried out by the executive bodies of the foundation.
Audit of common-benefit foundations
According to article 552 § 27 PGR (hereinafter Art. 552 § 27 PGR), every common-benefit foundation subject to supervision must apply to the Court of Justice to have a qualified and independent audit authority appointed. As an executive body of the foundation, the audit authority is under an obligation to verify once a year whether the foundation assets are being managed and appropriated in accordance with their purposes.
» Audit of common-benefit foundations
Audit of private-benefit foundations voluntarily placed under supervision
According to foundation law, STIFA’s competence to monitor management and appropriation of foundation assets in accordance with their purpose primarily, but not exclusively, extends to the monitoring of common-benefit foundations. According to Art. 552 § 29(1) PGR, private-benefit foundations may elect to place themselves under STIFA supervision pursuant to a provision in the foundation deed.
» Audit of private-benefit foundations voluntarily placed under supervision
Supervisory measures
According to Art. 552 § 29(3) PGR, STIFA may through special non-contentious civil proceedings apply to the Court of Justice for the orders required by its supervisory activity, such as the control and dismissal of the executive bodies of the foundation, carrying out of special audits, or cancellation of resolutions of executive bodies of the foundation.
» Supervisory measures
Rights to alter the foundation
In the course of the existence of a foundation, circumstances may arise that make the basic possibility of adjusting the foundation documents or even of revoking the foundation appear desirable.
» Rights to alter the foundation
Dissolution/termination/relocation of the domicile of a foundation
Where a common-benefit foundation subject to supervision is dissolved, STIFA must be notified of the resolution on dissolution with an indication of the ground for dissolution.
» Dissolution/termination/relocation of the domicile of a foundation
Verification of notifications of formation and amendment
According to Art. 552 § 21 PGR, STIFA verifies the accuracy of the deposited notifications of formation and amendment in the case of private-benefit foundations not subject to the registration requirement. For this purpose, information may be demanded from the foundation, and the foundation documents may be inspected through the controlling body (Art. 552 § 11 PGR) or, if no such body has been set up, through an authorised third party.
» Verification of notifications of formation and amendment