A Foundation may carry out any lawful activity and is formed for the purpose of holding and managing assets for private purposes and cannot be formed for charitable purposes.
The governance structure of a foundation registered at ADGM comprises the following key stakeholders and responsible parties:
The Foundation is formed according to the wishes of the Founder and is constituted in the Foundation Charter.
The Founder may vest Initial Assets comprising cash and tangible property as part of the formation.
Initial Beneficiaries are named at the time of the formation of the Foundation and the Founder reserves the right to vary or exclude any beneficiary from benefit during his/her lifetime.
A Foundation Council is formed of at least two natural persons or corporate entities to act as Councillors to carry out the objects, to manage and administer the assets of the foundation.
The Council may regulate their proceedings as they seem fit and may call meetings with at least 10 day's notice or with shorter notice if previously approved.
Meetings must meet a minimum Quorum of a majority of the members, or in the case of a council of two members, both members must be in attendance.
Accounting records must be maintained.
A Guardian may be appointed at any time and must be appointed in the event that there is no surviving Founder.
The Guardian may be appointed by the Founder and the Founder may replace the Guardian.
A Guardian may be a Beneficiary but may not be a Founder, Councillor or sole Beneficiary.