Abstract
Philanthropy has gained more importance around the globe. Foundations are one of the most chosen organizational forms to pursue philanthropic interests. Legal systems around the world are competing to offer the best legal environment to their foundation. The authors will analyze how Liechtenstein’s new provisions in foundation law, which offers every foundation to tailor its governance structure to fit its founders’ demands, make the small state an ideal and neutral location for the realization of international philanthropic projects. In the second part, the focus shifts to the financial challenges and risks foundations must face and how to manage them. As foundations in most cases miss the in-house knowledge to manage these risks, they behave more risk-averse than necessary. Together with the framework of risk-averse financial market authorities, financial advantages of a professional risk and asset management approach remain on average unused.
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Notes
- 1.
Case C-384/06 Stauffer [2006] ECR I-08203; Case C-318/07 Persche [2009] ECR I-359.
- 2.
Case C-212/97 Centros [1999] ECR I-1459; Case C-208/00 Überseering [2002] ECR I-9919.
- 3.
See the Law of June 26, 2008, on the Amendment of the Persons and Companies Act, Liechtenstein Law Gazette 2008, No. 220 (Gesetz vom 26.06.2008 über die Abänderung des Personen- und Gesellschaftsrechts, LGBl. 2008, Nr. 220); in this context, see Schauer, M. (2008); with regard to its historical development, see Tschütscher, K. (2008). Das neue liechtensteinische Stiftungsrecht–Entstehungsgeschichte und Gesamtüberblick. LJZ, 4, 79.
- 4.
Administration, L. N. “Instruction sheet concerning the exemption from the audit office requirement for charitable foundations subject to supervision pursuant to Art 552 § 27 para. 5 PGR in conjunction with Art 5 and Art 6 para. 2 b StRV.” Available at: www.llv.li/llv-gboera-home.htm
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Schurr, F.A., Menichetti, M.J. (2023). Cross-Border Philanthropy: Current Challenges in Corporate Governance and Financial Risk Management. In: Droege, P., Güldenberg, S., Menichetti, M.J., Seidel, S. (eds) Cross-Border Life and Work. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-031-34362-9_3
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