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Decree-Law No. 21 of 2006 Regarding Private Foundations for the Public Benefit
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Decree-Law No. 21 of 2006 Regarding Private Foundations for the Public Benefit
Law Summary Record
Type:
Decree
Number:
21
Date:
29/06/2006 Corresponding to 03/06/1427 Hijri
Number of Articles:
14
Status:
In force
Official Gazette :
Issue:
8
Offcial Journal Issue
Publication Date:
28/08/2006 Corresponding to 04/08/1427 Hijri
Page from:
154
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Articles
1 Article
In the application of the provisions of this Law, the following words and expressions shall have the meanings assigned to each, unless the context requires otherwise:
“'Foundation”'means the Private Foundation for the Public Benefit.
“'Founder”'means the natural or juristicperson(s) who establishthe Foundation.
“'Document”'means the incorporation document of the Foundation.
“Articles of Association”means the articles of association of the Foundation which are provided by the founder.
“'The Competent Authority for notarization of the Documents”means the Real Estate Registration and Authentication Department in the Ministry of Justice or any other entity that would substitute it.
2 Article
The Private Foundation for the Public Benefit (hereinafter “the Foundation”) is an entity established by one or more natural or juristic persons for the purpose of achieving one or more objectivesfor the public benefit. The Foundation shall havea legal personality andbefinancially independent.
3 Article
The Foundation shall be established by an incorporation document provided by the founderand shall have articles of association.
4 Article
The Document shall include the name of the Foundation, its headquarters, its objectives,the funds allocated for achieving such objectives, the name of the founder, their nationality, and their place of residence.
5 Article
The articles of association shall include all information related to the Foundation, in particular the following:
The name of the Foundation and its headquarters.
The Foundation's objectives.
The funds allocated to it.
The Foundation'smanagement technique and method, as well as the names of those who shall represent the Foundation before the judiciary and in its relationship with third parties.
The financial resources of the Foundation.
The entity to which the Foundation'sfunds shall devolve upon its termination. Such funds may devolve to the founderwhere the founder is a juristic person, subject to the approval of the Council of Ministers.
6 Article
- Amended
The Foundation shall be registered in a special register established for such purpose at the competent authority for notarizing documents. Such authority shall be responsible for declaring the Foundation by publishing its Document and articles of association in the
Official Gazette.
Any amendment in the articles of association must be registered and declared.
7 Article
The Foundation shall acquire corporate personality as soon as its registration is completed and published in the
Official Gazette
.
8 Article
1. The Foundation may conclude all contracts and agreements which are necessary for the conduct of its business and cooperate with all entities that conduct similar business or can assist the Foundation in achievingits objectives, or participate with the Foundation in any way.
The Foundation may also establish such branches as it deems necessary.
9 Article
With the approval of the Council of Ministers, the Foundation may be granted all or some of the following privileges:
Subsidies and in-kind privileges, including the allocation of lands necessary for conducting its business.
Exemption from all or some of the applicable taxes and fees.
Impermissibilityof attachment of its funds or ownershipby prescription.
10 Article
The financial resources of the Foundationshall be composed of:
Fundsallocated to itby the founder.
Returnson its services.
Profits of its investments.
Subsidies and in-kind benefitsallocated to it by the State.
Gifts and bequests.
11 Article
The Foundationshall obtain the approvals and permits necessary for conducting its business. The Foundation shall be subject only to the general supervision of the competent authority over the type of business which the Foundationconducts, in order to verify the compliancethereof with the applicable laws and regulations.
12 Article
In addition to the general reasons prescribed bylaw, the Foundation may be dissolved by a resolutionof the Council of Ministers in one of the following cases:
Insufficient financial resources necessary to conduct its business.
Committing a grave violation of the law or public order.
Disposing of the Foundation's funds or allocating them for purposesother than those for which the Foundationhas been established.
12 Article
BIS
It was added under: Law Decree No. 16 of 2007
Notwithstanding the provisions of this Law, private foundations for the public benefits may be established by an Emiri Decree. Such foundations shall have legal personality and be subject to the rules and provisionsstipulated in its Document and Articles of Association.
13 Article
All competent authorities, each within their jurisdiction, shall enforce this Law from the date of its publication in the
Official Gazette
.
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