The Supreme Court is regularly concerned with the question of the approval requirement for legal transactions between a private foundation and members of the foundation’s board of directors and has recently ruled that legal transactions between a private foundation and a company whose sole shareholder and managing director is a board member also require court approval (2 Ob 52/16k).

 

Especially since in practice we are repeatedly confronted with ambiguities about the approval requirement for legal transactions between a private foundation and the foundation board within the meaning of Section 17 Paragraph 5 PSG, we would like to use our current newsletter to provide a brief overview of the legal regulation of Section 17 Paragraph 5 PSG and its scope as well as the consequences of non-compliance with this provision.

Especially since in practice we are repeatedly confronted with ambiguities about the approval requirement for legal transactions between private foundations and the foundation board within the meaning of Section 17 Paragraph 5 PSG, we would like to use our current newsletter to provide a brief overview of the legal regulation of Section 17 Paragraph 5 PSG and its scope about the consequences of non-compliance with this provision.
For more information, see our current newsletter.

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