NEWSLETTER 06-2018: PRIVATE FOUNDATIONS – NO SUBSEQUENT INTRODUCTION OF A RIGHT TO CHANGE
The Supreme Court recently (OGH 6 Ob 71/18m dated May 24, 2018) addressed the question of whether a first founder entitled to make changes can subsequently grant a second donor the right to make changes and came to the conclusion that such a change would be inadmissible.
In practice, this could be problematic for numerous foundations if several founders only reserve the right to make changes.
As often happens in practice, in this case a private foundation was jointly set up by the first founder and the second founder – they are probably married couples. In the course of setting up the private foundation, both founders expressly waived the right of withdrawal. The right to make changes was reserved, but it was regulated in such a way that this can only be exercised by the first donor during his or her lifetime, but not by the second donor.
