Russia: The Civil Code - Article 118(1)
How does the Civil Code enhance the scope of enterprise development in Russia?
This document presents Article 118 of the Russia Civil Code, which defines a 'Foundation', and presents its various features.The Article defines a Foundation as: a non-membership, non-profit organization established by individuals and/or legal entities on the basis of voluntary property contributions for the attainment of social, charitable, cultural, educational or other public benefit goals.It lists the following main features of a Foundation:
- The property transferred to the Foundation is the Foundation's property;
- The Foundation must use its assets for the purpose defined in its Charter;
- The Foundation can engage in entrepreneurial activities necessary to attain the goals for which it was established;
- A Foundation must publish annual reports on the use of its property;
- The management of the Foundation must follow the procedures defined by its Charter and must be approved by the Founders;
- The Charter must provide the following information about the Foundation:
- Governing bodies;
- The Board of Trustees supervising its activities;
- Procedure of appointment and dismissal of the Foundation's officials;
- The use of the Foundation's property after its liquidation.