Guide to Guernsey foundations
The long-awaited Foundations (Guernsey) Law 2012 is now in force and the Guernsey Registry is accepting applications for registration.
This additional or alternative wealth management vehicle, and the structuring opportunities that accompany it, are likely to be of considerable interest to a wide variety of clients, in particular for those from civil law countries less familiar with trusts. It will also be of interest to those with existing foundations who are attracted to Guernsey’s G20 “white” list status and excellent wealth management reputation and who are looking to migrate their existing foundations from less well regulated or less convenient jurisdictions.
The Guernsey foundation is an incorporated entity with separate legal personality but which, unlike a company, does not have shareholders. Instead, it holds assets in its own name on behalf of beneficiaries, or particular purposes, or both, and it operates in accordance with a constitution comprising of a charter and a set of rules. Unlike a company, it cannot carry out commercial activities except those necessary for, or ancillary or incidental to, its purpose.1 As such it is an entirely new legal entity for Guernsey; it will look similar to a company but its operation is more akin to that of a trust…
If you are registered and logged in to the site, click on the link below to read the rest of the Appleby briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
Why register to The Lawyer
More relevant to you
News from Appleby
News from The Lawyer
Briefings from Appleby
Bermuda’s legal framework facilitates the creation of flexible and economically viable co-investment vehicles within a stable and business-friendly jurisdiction.
Feltham v Bouskell provides a cautionary tale for lawyers regarding the need to act quickly upon the receipt of instructions from elderly or ill clients.
Analysis from The Lawyer
Offshore law firms have long supplemented their legal offerings with fiduciary business, but will that model last?
Business is booming in the Isle of Man, a small jurisdiction that thinks big