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Russia: The Civil Code - Article 118(1)

How does the Civil Code enhance the scope of enterprise development in Russia?
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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:
    • Name;
    • Goals;
    • Governing bodies;
    • The Board of Trustees supervising its activities;
    • Procedure of appointment and dismissal of the Foundation's officials;
    • Location;
    • The use of the Foundation's property after its liquidation.