• Part 4: Part 4: Governing Law of a Foundation

    • Article 22 - QFC Law to Prevail in Respect of Foundations

      (1) To the extent permitted by QFC Law, any matter that arises in respect of:
      (A) a Foundation; or
      (B) the dedication of assets to a Foundation,
      must be determined in accordance with the law of the QFC and without reference to any Foreign Law.
      (2) A matter referred in Article 22(1) includes but is not limited to:
      (A) the capacity of the Founder to seek the establishment of the Foundation and/or the capacity of a Dedicator to dedicate assets to it;
      (B) the validity, interpretation or effect of the Constitution or any amendments;
      (C) the administration of the Foundation, including matters such as the functions, appointment and removal of a person appointed pursuant to the Constitution; or
      (D) the existence and extent of functions in respect of a Foundation, including but not limited to powers of amendment, revocation, appointment, and the validity of the exercise of such a function.
      (3) However, subsection (1) shall —
      (A) not validate any disposition of Property where the Property is:
      (1) not owned by the Founder or the Dedicator; or
      (2) not the subject of a power vested in the Founder or the Dedicator;
      (B) not validate any disposition of immovable Property situated in a jurisdiction other than the QFC in which such disposition is invalid according to the laws of that jurisdiction;
      (C) not validate any disposition which is invalid according to the laws to which the property being disposed is subject;
      (D) not affect the recognition of Foreign Law in determining whether a Founder or a Dedicator is or was the owner of Property or the holder of a power to dispose of such Property;
      (E) not affect the recognition of the laws of its place of incorporation in relation to the capacity of a corporation; and
      (F) not affect the recognition of Foreign Law prescribing, without reference to the existence of the Foundation or the Constitution, the formalities for the disposition of Property.
      Derived (as from 22nd September 2016).

    • Article 23 - Exclusion of Foreign Law

      Without limiting the generality of Article 22 (1), under the laws of the QFC,

      (A) no Foundation or disposition of assets to a Foundation that is valid under the laws of the QFC is void, voidable, liable to be set aside or defective in any manner by reference to a Foreign Law;
      (B) and none of the following is subject to an obligation or liability or deprived of a right, claim or interest arising from or under the Foundation,

      because:

      (A) the Foreign Law prohibits or does not recognise Foundations or prohibits the dedication of assets to Foundations;
      (B) the establishment of a Foundation or the dedication of assets to a Foundation voids or defeats any rights, claims or interest conferred by Foreign Law upon any Person by reason of a Personal Relationship to the Founder or Dedicator or by way of Inheritance Rights; or,
      (C) contravenes any rule of Foreign Law or any foreign, judicial or administrative order, arbitration award or action intended to recognise, protect, enforce or give effect to any such rights, claims or interest.

      other than where the Founder or the Dedicator has acted in bad faith.

      Derived (as from 22nd September 2016).

    • Article 24 - Inheritance Rights

      To the extent permitted by the QFC Law, an Inheritance Rights conferred by a Foreign Law , including laws of the State, in relation to the Property of a living person shall not be recognised as affecting the ownership of immovable Property in the State and movable Property, wherever it is situated, for the purposes of Article 22 (3)(A) and (B) or for any other purpose.

      Derived (as from 22nd September 2016).

    • Article 25 - Foreign Judgments

      The judgment of a court in a jurisdiction outside the QFC shall not be recognised or enforced or give rise to any estoppels insofar as it is inconsistent with Article 23 or Article 24

      Derived (as from 22nd September 2016).