Foundations Act 2011

Link to law: https://legislation.gov.im/cms/images/LEGISLATION/PRINCIPAL/2011/2011-0017/FoundationsAct2011_3.pdf
Published: 2015-11-01

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now
Foundations Act 2011

c i e
AT 17 of 2011

FOUNDATIONS ACT 2011

Foundations Act 2011 Index


c AT 17 of 2011 Page 3

c i e
FOUNDATIONS ACT 2011

Index Section Page

PART 1 – OPENING PROVISIONS 7

1 Short title .......................................................................................................................... 7
2 Commencement .............................................................................................................. 7
3 Interpretation ................................................................................................................... 7
PART 2 — ESTABLISHMENT OF FOUNDATIONS 10

Application for establishment 10

4 Application for the establishment of a foundation .................................................. 10
The foundation instrument 10

5 Foundation must have a foundation instrument ..................................................... 10
6 The foundation instrument — name of foundation ................................................. 10
7 The foundation instrument — objects ....................................................................... 11
8 The foundation instrument — council members ..................................................... 11
9 The foundation instrument — registered agent ....................................................... 12
The foundation rules 12

10 Foundation must have foundation rules ................................................................... 12
11 The foundation rules — objects .................................................................................. 12
12 The foundation rules — council ................................................................................. 12
13 The foundation rules — registered agent .................................................................. 13
14 The foundation rules—enforcer .................................................................................. 13
15 The foundation rules —dedication of assets ............................................................. 15
16 The foundation rules — winding up ......................................................................... 15
17 The foundation rules — term ...................................................................................... 15
18 The foundation rules — general ................................................................................. 16
19 The foundation rules — fees and expenses ............................................................... 16
20 Power to prescribe model foundation rules .............................................................. 16
21 The foundation rules — supply of copies ................................................................. 17
The council of a foundation 17

22 Foundation must have a council................................................................................. 17
23 The council of a foundation — membership ............................................................ 17
Index Foundations Act 2011


Page 4 AT 17 of 2011 c

24 The council of a foundation — acts of members ...................................................... 18
25 Decisions of the council ............................................................................................... 18
26 The members of the council and others — liability ................................................. 18
27 Disqualification from being a member of the council ............................................. 19
The registered agent 19

28 Foundation must have a registered agent ................................................................ 19
The rights of persons under a foundation 20

29 Rights of the founder and others under the foundation rules ............................... 20
30 Rights of beneficiaries .................................................................................................. 20
31 Provision of information by foundations.................................................................. 21
The establishment of a foundation 22

32 The Registrar may refuse application for establishment ........................................ 22
33 Establishment ................................................................................................................ 22
34 Means of establishment ............................................................................................... 22
The effect of establishment 23

35 Nature of a foundation ................................................................................................ 23
36 Capacity of a foundation ............................................................................................. 23
The application of laws to a foundation 24

37 Manx law to prevail in respect of foundations ........................................................ 24
38 Exclusion of foreign law .............................................................................................. 25
PART 3 — ADMINISTRATION OF FOUNDATIONS 26

39 Service of documents ................................................................................................... 26
40 Foundation to include name and address in its written communications ........... 26
41 Documents to be kept at business address of foundation ...................................... 26
42 Foundation to keep accounts ...................................................................................... 27
43 Right to require financial statements to be prepared .............................................. 28
44 Foundation to make annual return ............................................................................ 29
45 Amendment of the foundation instrument .............................................................. 29
PART 4 — THE REGISTRAR 30

46 The Registrar ................................................................................................................. 30
47 Exercise of functions of the Registrar ........................................................................ 30
48 Register to be kept and made available for public inspection ............................... 30
49 Keeping of records by the Registrar .......................................................................... 31
50 Power of the Registrar to refuse documents ............................................................ 31
PART 5 — POWERS OF THE HIGH COURT 32

51 Applications to the High Court .................................................................................. 32
52 Power of the High Court to order compliance ......................................................... 32
53 Power of the High Court to order amendment of foundation instrument or
foundation rules ........................................................................................................... 33
54 Power of the High Court to give directions.............................................................. 33
55 Power of the High Court to protect interests under a foundation ........................ 34
Foundations Act 2011 Index


c AT 17 of 2011 Page 5

56 Power of the High Court to dismiss or appoint a registered agent ....................... 34
57 Power of the High Court to take action on behalf of others ................................... 34
58 General power of the High Court in respect of orders ............................................ 34
PART 6 — CLOSING PROVISIONS 35

59 False or misleading statements ................................................................................... 35
60 Offences .......................................................................................................................... 35
61 Regulations .................................................................................................................... 35
62 Fees, penalties and forms ............................................................................................. 37
63 Application of bankruptcy rules in winding up ...................................................... 37
64 Foundation not precluded from being a registered charity ................................... 37
65 [Inserts paragraph (ba) in s120 Income Tax Act 1970.] .............................................. 37
66 [Inserts item (j) in the definition of “specified enactment” s33(4) and
inserts item (zc) in paragraph 2(2) Financial Services Act 2008.] ............................. 37
ENDNOTES 39

TABLE OF ENDNOTE REFERENCES 39

Foundations Act 2011 Section 1


c AT 17 of 2011 Page 7

c i e
FOUNDATIONS ACT 2011

Signed in Tynwald: 12 July 2011
Received Royal Assent: 11 November 2011
Announced to Tynwald: 15 November 2011
AN ACT
to provide for the establishment of foundations.
BE IT ENACTED
by the Queen’s Most Excellent Majesty, by and with the advice and
consent of the Council and Keys in Tynwald assembled, and by the authority of the
same, as follows:—
PART 1 – OPENING PROVISIONS

1 Short title

The short title of this Act is the Foundations Act 2011.
2 Commencement

This Act (other than this section and section 1) comes into operation on such
days as the Treasury by order appoints and different days may be so appointed
for different provisions and for different purposes.1

3 Interpretation

In this Act, unless the context otherwise requires —
“assets
”, in respect of a foundation, means —
(a) any assets (including money, investments and other property)
dedicated to the foundation;
(b) any capitalised income added to the assets so dedicated; and
(c) the money, investments and property from time to time
representing those assets and capitalised income;
“assigned
”, in respect of a right a person has in respect of a foundation or its
assets, means assigned by that person or by a person to whom the right
has been assigned;
Section 3 Foundations Act 2011


Page 8 AT 17 of 2011 c

“beneficiary
”, in respect of a foundation that has the provision of a benefit to a
person or to a class of persons as one of its objects, means a person
(whether or not yet born or otherwise in existence) who is or who
becomes a member of a class of persons that is —
(a) specified in the foundation instrument; or
(b) determined in accordance with —
(i) the foundation rules; or;
(ii) a direction of the High Court under section 54(2),
for the purpose of that object or those objects;
“business address
” means —
(a) in respect of a foundation, the business address of its registered
agent or, if there is no such registered agent, its last registered
agent;
(b) in respect of the registered agent of a foundation, the business
address of the registered agent in the Island as it appears in the
register;
“class 4 licenceholder
” means a person who holds a licence issued under the
Financial Services Act 2008 which permits that person to undertake the
sub-class of regulated activity of acting as registered agent of a
foundation as part of its permitted activities of providing corporate
services;
“dedicate
” means to pass, or covenant to pass, the title in property absolutely,
with or without consideration, to a foundation so that the property is an
asset of the foundation (and “to pass
”, for the purposes of this definition,
includes whatever act may be necessary in relation to that property to
transfer title effectively) and “dedication
” is to be construed accordingly;
“dedicator
” means a person, other than the founder, who dedicates assets to the
foundation;
“Department
” means the Department of Economic Development;
“enforcer
” means the person who is the enforcer of the foundation by virtue of
section 14;
“financial statements
” means written statements of the foundation which
comply with section 42(2);
“foundation
” means a foundation established under this Act;
“foundation instrument
” includes any document, by whatever name called,
which complies with the requirements of this Act relating to the
foundation instrument of a foundation;
“foundation rules
” includes any document, by whatever name called, which
complies with the requirements of this Act relating to the foundation
rules of a foundation;
Foundations Act 2011 Section 3


c AT 17 of 2011 Page 9

“founder
” means the person who instructed the class 4 licenceholder to apply
for the establishment of the foundation;
“functions
” includes powers and duties;
“person appointed under the foundation rules
” means —
(a) a member of the council of the foundation;
(b) the registered agent of the foundation;
(c) an enforcer of the foundation; and
(d) any other person appointed under the foundation rules to carry
out a function in respect of the foundation;
“person with sufficient interest
”, in respect of a foundation, means —
(a) the foundation;
(b) a founder of the foundation;
(c) a dedicator to the foundation;
(d) if any rights a founder of a foundation had in respect of the
foundation and its assets have been assigned to some other
person, that other person;
(e) a member of the council of the foundation;
(f) an enforcer of the foundation;
(g) the registered agent of the foundation;
(h) a person appointed under the foundation rules;
(i) a beneficiary of the foundation;
(j) in respect of a specified object of the foundation which is
charitable, the Attorney General;
(k) a person who, in the view of the High Court, can reasonably claim
to speak on behalf of an object or purpose of the foundation; or
(l) a person who the High Court determines to be a person with
sufficient interest under section 51(3);
“published
” means published in a manner likely to bring it to the attention of
those affected;
“register
”, as a noun, means the register kept by the Registrar for the purposes
of this Act under section 48(1);
“registered agent
” means the class 4 licenceholder who is the registered agent
of the foundation by virtue of section 28;
“the Registrar
” means the person or body appointed as registrar of foundations
under section 46.
Section 4 Foundations Act 2011


Page 10 AT 17 of 2011 c

PART 2 — ESTABLISHMENT OF FOUNDATIONS

Application for establishment
4 Application for the establishment of a foundation

(1) Subject to subsection (2), an application may be made to the Registrar for
the establishment of a foundation.
(2) The application must be made by the class 4 licenceholder named as the
registered agent in the declaration referred to in subsection (5) and the
Registrar must not accept an application made by any other person.
(3) The application must be made in a form and manner published by the
Registrar and must contain the information required by the Registrar.
(4) It must be accompanied by —
(a) a copy of the foundation instrument;
(b) the published fee.
(5) The application must also be accompanied by a declaration signed by the
class 4 licenceholder making the application stating —
(a) that the class 4 licenceholder will become the registered agent of
the foundation on its establishment;
(b) that the class 4 licenceholder is in possession of the foundation
rules for the proposed foundation that have been approved by
both the founder of the foundation and by the class 4
licenceholder; and
(c) that the address in the Island, specified in the declaration, is the
business address in the Island of the class 4 licenceholder.
(6) The application and any document accompanying it must be
authenticated in any manner determined by the Registrar.
The foundation instrument
5 Foundation must have a foundation instrument

(1) A foundation must have a foundation instrument that complies with the
requirements of this Act.
(2) The foundation instrument must be in English.
6 The foundation instrument — name of foundation

(1) The foundation instrument must specify the name of the foundation.
(2) The Company and Business Names etc Act 2012 has effect in respect of the
names of foundations established under this Act.2

Foundations Act 2011 Section 7


c AT 17 of 2011 Page 11

(3) The requirements of that Act are additional to the requirements of this
Act.3

(4) The foundation instrument may prohibit the foundation from changing
its name.
(5) If the foundation is not so prohibited, it must notify the Registrar of any
change of name in accordance with section 45 (as the change of name
entails an amendment to the foundation instrument).
(6) The new name must be approved in accordance with the Company and
Business Names etc Act 2012.4

(7) [Repealed]5

(8) [Repealed]6

(9) [Repealed]7

(10) Where a foundation changes its name or a new name is assigned, the
Registrar must enter in the register the new name of the foundation and
date the entry.
7 The foundation instrument — objects

(1) The foundation instrument must specify the objects for which the
foundation is established.
(2) The objects —
(a) must be certain, reasonable and possible; and
(b) must not be unlawful, contrary to public policy or immoral.
(3) The objects may be charitable, non-charitable or both.
(4) The objects may be —
(a) to benefit a person or a class of persons; or
(b) to carry out a specified purpose,
or to do both.
(5) It is sufficient, for the purpose of subsection (4)(a), for the foundation
instrument to provide that the person or class of persons may be
determined in accordance with the foundation rules.
(6) It is sufficient, for the purpose of subsection (4)(b), for the foundation
instrument to provide that the foundation is to hold assets selected in
accordance with the foundation rules.
8 The foundation instrument — council members

(1) The foundation instrument must specify the names and addresses of the
members for the time being of the council of the foundation.
Section 9 Foundations Act 2011


Page 12 AT 17 of 2011 c

(2) The foundation must notify the Registrar of any change to the
composition of its council or to the names and addresses of its members
in accordance with section 45 (as the change of these details entails an
amendment to the foundation instrument).
9 The foundation instrument — registered agent

(1) The foundation instrument must specify the name and address of the
registered agent for the time being of the foundation.
(2) The foundation must notify the Registrar of any change to the registered
agent or to any change to the registered agent’s name or addresses in
accordance with section 45 (as the change of these details entails an
amendment to the foundation instrument).
The foundation rules
10 Foundation must have foundation rules

(1) A foundation must have foundation rules that comply with this Act.
(2) The foundation rules may be in a language other than English.
(3) Where the foundation rules are not in English, the foundation must
provide a copy of an accurate English translation of the rules to the
registered agent.
(4) The registered agent must retain the translation.
(5) A foundation which fails to comply with subsection (3) commits an
offence.
(6) A registered agent who fails to comply with subsection (4) commits an
offence.
11 The foundation rules — objects

If a foundation has the provision of benefits to a person or to a class of persons
as one of its objects, the foundation rules may provide for the manner in which
that object may be amended —
(a) to exclude a person or a class of persons;
(b) to apply to a different person or to a different class of person; or
(c) to include an additional person or an additional class of persons,
as the case may be.
12 The foundation rules — council

The foundation rules must —
Foundations Act 2011 Section 13


c AT 17 of 2011 Page 13

(a) establish a council to administer the foundation’s assets and to
carry out its objects;
(b) provide for the appointment, retirement, removal and
remuneration (if any) of the council’s members;
(c) set out how the decisions of the council are to be made and, if any
decision requires the approval of any other person, specify the
decisions and that person; and
(d) set out the functions of the council, and, if they must or may be
delegated or exercised in conjunction with any other person, the
extent to which this must or may be done.
13 The foundation rules — registered agent

(1) The foundation rules must provide for the appointment, retirement,
removal and remuneration (if any) of the registered agent of the
foundation.
(2) In particular, the foundation rules must set out a procedure that ensures
that a class 4 licenceholder is appointed to be the registered agent of the
foundation as soon as reasonably practicable if its registered agent —
(a) dies;
(b) retires; or
(c) otherwise ceases to act or to be able to act.
(3) Despite any provision of the foundation rules to the contrary, if the
registered agent —
(a) retires; or
(b) is removed,
the retirement or removal does not take effect until immediately before
the appointment of a new class 4 licenceholder to be the registered agent
has taken effect.
14 The foundation rules—enforcer

(1) Subject to subsection (2), a foundation may have an enforcer.
(2) If an object of a foundation is to carry out a specified non-charitable
purpose, the foundation must have an enforcer in respect of that object.
(3) However, a foundation may, but need not, have an enforcer in respect of
an object to benefit —
(a) a person or class of persons, whether or not immediately
ascertainable; or
(b) some aggregate of persons ascertained by reference to some
personal relationship.
(4) If it is to have one, the enforcer —
Section 14 Foundations Act 2011


Page 14 AT 17 of 2011 c

(a) must be appointed in accordance with this Act; and
(b) has, in respect of the foundation, the functions specified in this
Act and in the foundation rules.
(5) If the foundation has an enforcer, the foundation rules must —
(a) specify the name and address of the enforcer for the time being;
and
(b) provide for the enforcer’s appointment.
(6) Accordingly, the foundation rules must —
(a) provide how an enforcer may retire;
(b) provide how a new enforcer is to be appointed; and
(c) provide for the enforcer’s remuneration (if any).
(7) Apart from —
(a) a founder of a foundation; and
(b) a class 4 licenceholder who is a member of its council,
a person may not be both a member of its council and its enforcer.
(8) The enforcer must take reasonable steps to ensure that the council of the
foundation carries out its functions.
(9) Accordingly, the enforcer may require the council to account to the
enforcer for the way in which it has —
(a) administered the foundation’s assets; and
(b) acted to further the foundation’s objects.
(10) The foundation rules may give its enforcer the power to approve or
disapprove any specified actions of its council.
(11) Except to the extent that the foundation rules provide otherwise, the
enforcer may sanction or authorise any action taken or to be taken by the
council of the foundation that would not otherwise be permitted by the
foundation rules if the enforcer considers that it is appropriate to do so.
(12) However, the enforcer must not do so unless satisfied —
(a) that it is in the best interests of the foundation to do so; and
(b) that the council, in taking the action, acted or will be acting in
good faith.
(13) If the enforcer, acting under subsection (11), sanctions or authorises any
action of the council of the foundation, the council, in taking that action,
is to be taken for the purposes of third parties to have acted in good faith.
(14) Nothing in subsection (11) is to be construed as permitting the enforcer
to sanction or to authorise any action taken or to be taken by the council
of the foundation that would be inconsistent with this Act or any other
enactment.
Foundations Act 2011 Section 15


c AT 17 of 2011 Page 15

15 The foundation rules —dedication of assets

(1) A foundation need not have an initial dedication of assets.
(2) However, if it does have one, the details of the dedication must be
specified in the foundation rules.
(3) Further assets may be dedicated to the foundation after its establishment,
unless the foundation rules provide otherwise.
(4) If further assets are so dedicated, the details of the dedication must be
specified in the foundation rules.
(5) The dedication of assets to a foundation by a person does not —
(a) make the person a founder; or
(b) vest in the person a right vested in a founder of the foundation.
16 The foundation rules — winding up

(1) The foundation rules must specify what is to happen to any assets of the
foundation that remain should the foundation be wound up and
dissolved.
(2) If the remaining assets of the foundation are not disposed of for any
reason, a person with sufficient interest may apply to the High Court
under section 51 for a direction as to the disposal of those assets.
(3) Where the foundation is dissolved, all property and rights vested in or
held on trust for the foundation immediately before its dissolution are to
be treated as bona vacantia and consequently vest in the Treasury in trust
for the Crown and may be dealt with in the same manner as other bona
vacantia accruing to the Crown under the Companies Act 1931 (including
the power to disclaim title or dispose of the property or right).
17 The foundation rules — term

(1) If a foundation is to be wound up and dissolved upon —
(a) the happening of some event; or
(b) the expiration of a fixed period of time,
details of the event or period must be specified in the foundation rules.
(2) If a person is to have the right to have a foundation wound up and
dissolved, details of the right must be specified in the foundation rules.
(3) Subsection (2) is subject to any right arising under an enactment or rule
of law.
Section 18 Foundations Act 2011


Page 16 AT 17 of 2011 c

18 The foundation rules — general

(1) The foundation rules may, in addition to the matters required to be set
out in them by this Act, provide for any other matter in respect of the
foundation.
(2) They may, in particular —
(a) provide for the manner in which the foundation instrument or
foundation rules may be amended;
(b) restrict the provisions of the foundation instrument or foundation
rules which may be amended; and
(c) provide for the appointment, retirement, removal and
remuneration (if any) of persons (other than the members of the
council of the foundation, the registered agent of the foundation
and its enforcer) to carry out functions in respect of the
foundation.
(3) But where a foundation instrument specifies an exclusively charitable
object, the foundation rules must not provide for the amendment of the
foundation instrument so as to specify a non-charitable object in place of
the charitable object.
19 The foundation rules — fees and expenses

Unless the foundation rules provide otherwise, a person appointed under the
foundation rules is entitled —
(a) to receive payment from the foundation which has been agreed by
the person and the foundation in respect of services provided by
the person to the foundation;
(b) to be reimbursed by the foundation for any reasonable fees or
expenses incurred by the person in carrying out functions in
respect of the foundation.
20 Power to prescribe model foundation rules

(1) Regulations made by the Treasury under section 61(1) may prescribe
model foundation rules for foundations.
(2) Subsection (3) applies with effect from the date of a foundation’s
establishment.
(3) If the foundation rules —
(a) make no provision for a matter for which provision is made by
the relevant model foundation rules; and
(b) do not expressly or by necessary implication exclude that
provision of those model rules,
that provision is deemed to be included in those rules.
Foundations Act 2011 Section 21


c AT 17 of 2011 Page 17

(4) In subsection (3), “the relevant model foundation rules” means the
relevant model rules as in operation at the date of the foundation’s
establishment.
(5) If model foundation rules are amended by regulations, the amendment
does not affect the foundation rules of a foundation established before
the amendment takes effect.
21 The foundation rules — supply of copies

(1) Unless the foundation rules provide otherwise, a foundation need not
supply a copy of the foundation rules to a person other than —
(a) a member of its council;
(b) its registered agent;
(c) its enforcer (if any); and
(d) its founder.
(2) Subsection (1) does not affect any obligation of a foundation to supply a
copy of the foundation rules imposed by an enactment or by an order of
a court.
The council of a foundation
22 Foundation must have a council

A foundation must have a council —
(a) to administer the assets of the foundation; and
(b) to carry out its objects.
23 The council of a foundation — membership

(1) The council of a foundation must have at least one member.
(2) A member who is an individual must be at least 18 years old.
(3) A member must not be —
(a) a person who is suffering from a mental disorder within the
meaning of section 1 of the Mental Health Act 1998, or a
corresponding provision of the law of a jurisdiction outside the
Island;
(b) a person who is disqualified from being a member of the council
of a foundation or a director of a company under this or any other
enactment; or
(c) a person who is subject to a disqualification order or
disqualification undertaking under the Company Officers
(Disqualification) Act 2009.
Section 24 Foundations Act 2011


Page 18 AT 17 of 2011 c

(4) The registered agent of a foundation is not precluded from also being a
member of its council.
24 The council of a foundation — acts of members

(1) The members of the council of a foundation must conduct the
foundation’s affairs in accordance with its foundation instrument,
foundation rules, this Act and any other enactment.
(2) The members of the council of a foundation must —
(a) act honestly and in good faith with a view to the best interests of
the foundation; and
(b) exercise the care, diligence and skill that reasonably prudent
persons would exercise in comparable circumstances.
(3) The duty under subsection (2)(a) is fiduciary in nature.
(4) An act of a member of the council of a foundation is valid despite any
defect that may afterwards be found in —
(a) the appointment of the member; or
(b) the member’s qualifications.
25 Decisions of the council

(1) The exercise by the council of a power under this Act, the foundation
instrument or foundation rules is to be sanctioned by —
(a) a resolution at a meeting of the council; or
(b) a written resolution under subsection (3).
(2) A resolution of the members of the council is passed at a meeting of the
council if it is approved by a majority of the members of the council who
are present at such meeting and (being entitled to do so) vote on the
matter (or such specified majority as the foundation rules provide).
(3) An action that may be taken by the council at a meeting may also be
taken by a resolution of the council consented to in writing or electronic
communication by all the members of the council (or such specified
majority as the foundation rules provide).
(4) A resolution under subsection (3) may consist of several documents,
including electronic communications, in like form each signed or
assented to by one or more members of the council.
26 The members of the council and others — liability

(1) This section applies to a person appointed under the foundation rules
when acting or purporting to be acting in the course of that appointment.
(2) Nothing —
Foundations Act 2011 Section 27


c AT 17 of 2011 Page 19

(a) in the foundation instrument or foundation rules; or
(b) in a contract between the foundation and a person to whom this
section applies,
relieves, releases or excuses the member from any liability for the
person’s fraud, wilful misconduct or gross negligence.
(3) Any insurance purchased and maintained by the foundation in respect of
a person to whom this section applies must not include insurance in
respect of —
(a) any liability the person may incur —
(i) to the foundation; or
(ii) to pay a fine in respect of an offence; or
(b) any costs the person may incur —
(i) in defending criminal proceedings in which the person is
convicted; or
(ii) in defending civil proceedings brought by the foundation
in which judgment is given against the person.
27 Disqualification from being a member of the council

(1) So far as is possible, the provisions of the Company Officers
(Disqualification) Act 2009 apply to foundations with the necessary
modifications, including the modifications specified in subsection (2).
(2) In particular —
(a) a foundation is to be treated as a company; and
(b) a member of the council of a foundation is to be treated as an
officer of a company.
(3) Regulations made by the Isle of Man Financial Services Authority under
section 61(2) may further modify the Company Officers (Disqualification)
Act 2009 in its application to foundations.8

The registered agent
28 Foundation must have a registered agent

(1) A foundation must have a registered agent.
(2) The registered agent of a foundation —
(a) must be appointed in accordance with this Act; and
(b) has, in respect of the foundation, the functions specified in this
Act and in the foundation rules.
(3) On the establishment of a foundation the class 4 licenceholder named
under section 4(5)(a) becomes the registered agent of the foundation.
Section 29 Foundations Act 2011


Page 20 AT 17 of 2011 c

(4) Although the council of a foundation may include more than one class 4
licenceholder it may not have more than one registered agent at any one
time.
The rights of persons under a foundation
29 Rights of the founder and others under the foundation rules

(1) A founder of a foundation has such rights (if any) in respect of the
foundation and its assets as are provided for in the foundation rules.
(2) A person specified in the foundation rules (other than the founder, a
member of the council, the registered agent and any enforcer) has such
rights (if any) in respect of the foundation and its assets as are provided
for in the foundation rules.
(3) Any rights a person may have in respect of the foundation and its assets
may be assigned to some other person if the foundation rules so provide.
(4) If rights are assigned, the person assigning the rights must provide a
copy of the assignment to the registered agent of the foundation.
(5) The registered agent must retain the copy.
(6) A person who fails to comply with subsection (4) commits an offence.
(7) A registered agent who fails to comply with subsection (5) commits an
offence.
(8) Subsection (9) applies where —
(a) a founder or other person has rights in respect of the foundation
and its assets; or
(b) a person has in writing been assigned any rights of a founder or
other person in respect of a foundation and its assets,
and the founder or person dies or, in the case of a founder or a person
that is not an individual, ceases to exist.
(9) Those rights vest in the council of the foundation unless the foundation
rules provide otherwise.
30 Rights of beneficiaries

(1) A beneficiary under a foundation has no interest in the foundation’s
assets.
(2) However, if —
(a) a beneficiary becomes entitled to a benefit under the foundation in
accordance with the foundation instrument or the foundation
rules; and
(b) the benefit is not provided,
Foundations Act 2011 Section 31


c AT 17 of 2011 Page 21

the beneficiary, or a person acting on behalf of the beneficiary, may seek
an order of the High Court ordering the foundation to provide the
benefit.
(3) Except as provided by subsection (4), the beneficiary must seek the order
within the period of 3 years from the time when the beneficiary became
aware of the entitlement to the benefit.
(4) If the beneficiary has not attained the age of 18 years when he or she
became aware of his or her entitlement to the benefit, the period referred
to subsection (3) begins to run on the day on which the beneficiary
attains that age.
31 Provision of information by foundations

(1) Subsection (2) applies where a written request is made by a person with
sufficient interest in the foundation.
(2) To the extent requested, the foundation must provide the person making
the request with full and accurate information about any of the
following —
(a) the financial statements of the foundation;
(b) the assets of the foundation;
(c) the manner in which its assets are being administered;
(d) the way in which it is carrying out its objects; and
(e) the administration of the foundation.
(3) The information must be provided as soon as practicable after the
foundation receives the request.
(4) Subsection (1) is subject to subsection (5).
(5) Subject to subsection (8), a foundation is not required to provide any
person with information about the foundation where the provision of
that information is prohibited under the foundation rules.
(6) If subsection (5) applies, the person making the request may apply to the
High Court under section 51 for an order authorising or requiring the
provision of the information.
(7) The person applying to the High Court must show that the provision of
the information is necessary or expedient to enable the determination as
to whether or not —
(a) the foundation is carrying out its objects;
(b) the council of the foundation is carrying out its functions;
(c) the assets of the foundation are being properly administered; and
(d) the foundation is being properly administered.
Section 32 Foundations Act 2011


Page 22 AT 17 of 2011 c

(8) Subsection (5) does not affect any other obligation of a foundation to
supply information about the foundation imposed by an enactment or an
order of a court.
The establishment of a foundation
32 The Registrar may refuse application for establishment

(1) The Registrar may refuse to accept an application for the establishment
of a foundation if —
(a) the Registrar considers that its proposed name contravenes the
requirements of the Company and Business Names etc Act 2012; or9

(b) a matter comes to the attention of the Registrar which leads the
Registrar to consider that its proposed objects contravene section
7(2).
(2) If the Registrar does so refuse, the Registrar must inform the applicant of
the refusal and the reason for the refusal.
(3) The applicant may, within 21 days of being informed of the refusal,
appeal to the High Court.
(4) The High Court may order the Registrar to accept the application if it
considers —
(a) that the proposed name of the foundation does not contravene the
requirements of the Company and Business Names etc Act 2012; or10

(b) that the proposed objects of the foundation do not contravene
section 7(2),
as the case may be, but must otherwise confirm the Registrar’s decision
to refuse to accept the application.
(5) This section also applies, with necessary amendments, to any application
to register an amendment to the foundation instrument of a foundation
that involves a change of its name or objects.
33 Establishment

The Registrar must establish a foundation if —
(a) the Registrar accepts an application from a class 4 licenceholder
for the establishment of the foundation on behalf of a person; and
(b) the Registrar is satisfied that the requirements of this Act in
respect of the establishment of the foundation have been complied
with.
34 Means of establishment

(1) To establish a foundation the Registrar must enter in the register —
Foundations Act 2011 Section 35


c AT 17 of 2011 Page 23

(a) the name and business address of the foundation;
(b) its objects;
(c) the names and residential addresses of the members of its council;
and
(d) the name and business address in the Island of the registered
agent of the foundation as shown in the declaration mentioned in
section 4(5),
and date the entries.
(2) The Registrar must also issue the foundation with a registration number
and a certificate of establishment.
(3) An entry in the register of the name of a foundation is conclusive
evidence —
(a) that, on the date mentioned in subsection (1), the foundation was
established under this Act; and
(b) that the requirements of this Act were complied with in respect of
all matters precedent or incidental to the establishment of the
foundation.
The effect of establishment
35 Nature of a foundation

A foundation —
(a) is a legal person with the name specified in respect of it in the
register;
(b) is capable of suing and being sued and prosecuted in its own
name; and
(c) holds its assets for its objects.
36 Capacity of a foundation

(1) Except as provided by subsections (3) to (5), a foundation, acting through
its council, is capable of exercising all the rights, powers and privileges of
an individual.
(2) Accordingly, the capacity of a foundation is not limited by —
(a) anything in the foundation rules; or
(b) any act by a person appointed under the foundation rules.
(3) A foundation may not directly engage in commercial trading that is not
incidental to the attainment of its objects.
(4) Regulations made by the Treasury under section 61(1) may further
restrict the activities of foundations.
Section 37 Foundations Act 2011


Page 24 AT 17 of 2011 c

(5) Subsection (1) is subject to any restriction arising under an enactment or
rule of law.
The application of laws to a foundation
37 Manx law to prevail in respect of foundations

(1) A question that arises in respect of —
(a) a foundation; or
(b) the dedication of assets to a foundation,
must be determined in accordance with the law of the Island without
reference to the law of a jurisdiction outside the Island.
(2) Without limiting subsection (1), the question may be a question as to —
(a) the capacity of the founder of a foundation to seek the
establishment of the foundation or the capacity of a dedicator to
dedicate assets to it;
(b) the validity, interpretation or effect of the foundation instrument
or foundation rules or of an amendment of them;
(c) the administration of the foundation, whether it is conducted in
the Island or elsewhere, including questions as to the functions,
appointment and removal of a person appointed under the
foundation rules; or
(d) the existence and extent of functions in respect of a foundation,
including (but not limited to) powers of amendment, revocation
and appointment, and the validity of the exercise of such a
function.
(3) However, subsection (1) —
(a) does not validate the dedication of assets to a foundation with
property that is not —
(i) owned by a founder or dedicator; or
(ii) the subject of a power of disposition vested in a founder or
dedicator;
(b) does not affect the recognition of the law of a jurisdiction outside
the Island in determining whether a founder or a dedicator is or
was the owner of property or the holder of such a power;
(c) is subject to an express provision to the contrary in the foundation
instrument or foundation rules;
(d) does not, as regards the capacity of a body corporate, affect the
recognition of the law of its place of incorporation;
(e) does not affect the recognition of the law of a jurisdiction outside
the Island prescribing (without reference to the existence of the
Foundations Act 2011 Section 38


c AT 17 of 2011 Page 25

foundation or the terms of its foundation instrument and
foundation rules) the formalities for the disposition of property;
(f) does not validate a trust or disposition of immoveable property
situate in a jurisdiction outside the Island that is invalid under the
law of that jurisdiction; and
(g) does not validate a testamentary disposition that is invalid under
the law of the testator’s last domicile.
38 Exclusion of foreign law

(1) Neither of the following is void, voidable, liable to be set aside, invalid or
subject to an implied condition because of a reason specified in
subsection (3), (4) or (6) —
(a) the establishment of a foundation; or
(b) the dedication of assets to a foundation.
(2) None of the following is subject to an obligation or liability or deprived
of a right, claim or interest arising from or under the foundation because
of a reason specified in subsection (3), (4) or (6) —
(a) a foundation;
(b) a founder of a foundation;
(c) an assignee of a right a founder of a foundation may have had in
respect of the foundation or its assets;
(d) a dedicator to the foundation;
(e) a person appointed under the foundation rules;
(f) a beneficiary under a foundation;
(g) a third party.
(3) The first reason is that the law of a jurisdiction outside the Island —
(a) prohibits or does not recognise foundations; or
(b) prohibits the dedication of assets to foundations.
(4) The second reason is that —
(a) the establishment of a foundation; or
(b) the dedication of assets to a foundation,
avoids or defeats or potentially avoids or defeats a right, claim, interest,
obligation or liability conferred or imposed by the law of a jurisdiction
outside the Island on a person as the result of a factor mentioned in
subsection (5).
(5) The factors are —
(a) the existence of a personal relationship between a person referred
to in subsection (4) and —
(i) a founder;
Section 39 Foundations Act 2011


Page 26 AT 17 of 2011 c

(ii) a dedicator;
(iii) an assignee of a right a founder of a foundation may have
had in respect of the foundation or its assets; or
(iv) a beneficiary under the foundation; or
(b) the existence of foreign heirship rights.
(6) The third reason is that —
(a) the establishment of a foundation; or
(b) the dedication of assets to a foundation,
contravenes or potentially contravenes a rule of law or a judicial or
administrative judgment, order or action of a jurisdiction outside the
Island intended to recognise, protect, enforce or give effect to a right,
claim, interest, obligation or liability mentioned in subsection (4).
(7) Despite any other enactment or rule of law, a judgment or order of a
court of a jurisdiction outside the Island that concerns a question
mentioned in section 37(1) is not —
(a) to be recognised, enforced or otherwise given effect to; or
(b) to give rise to a right, obligation or liability or raise any estoppel,
if the court in giving the judgment or making the order failed to take the
operation of section 37 and this section into account.
PART 3 — ADMINISTRATION OF FOUNDATIONS

39 Service of documents

A document required to be served on a foundation must be served on the
foundation by leaving it at, or by sending it by post to, its business address.
40 Foundation to include name and address in its written communications

(1) A foundation must include its name, business address and registration
number in its written communications, including those transmitted by
electronic means.
(2) A foundation which contravenes subsection (1) commits an offence.
41 Documents to be kept at business address of foundation

(1) A foundation must keep the documents and records specified in
subsection (2) at its business address or at such other place, within or
outside the Island, as the council of the foundation determines.
(2) The documents and records referred to in subsection (1) are —
(a) a copy of its foundation instrument and foundation rules as they
are for the time being in force;
Foundations Act 2011 Section 42


c AT 17 of 2011 Page 27

(b) a register showing the names and addresses of the members of its
council;
(c) records sufficient to show and explain its transactions, including
minutes of meetings of the council and resolutions of the council;
(d) a record of the appointment of any enforcer of the foundation
showing the date of his or her appointment and his or her name
and address;
(e) records that disclose, with reasonable accuracy, its financial
position;
(f) a register of the names and addresses of all dedicators to the
foundation.
(3) Where documents and records are kept at a place other than at its
business address, the foundation must provide the registered agent with
a written record of the physical address of the place at which they are
kept.
(4) Where the place at which they are kept is changed, the foundation must
provide the registered agent with the physical address of the new
location of the documents and records within 14 days of the change of
location.
(5) The registered agent may —
(a) at any reasonable time specified by the registered agent inspect
the documents and records of the foundation without charge and
make copies of or take extracts from the records;
(b) require the foundation to provide originals or copies of the
documents and records to the registered agent within 14 days.
(6) The foundation must —
(a) allow an inspection under subsection (5)(a); and
(b) comply with a requirement under subsection (5)(b).
(7) A foundation which contravenes this section commits an offence.
42 Foundation to keep accounts

(1) A foundation must keep reliable accounting records which —
(a) correctly explain the transactions of the foundation;
(b) enable the financial position of the foundation to be determined
with reasonable accuracy at any time; and
(c) allow financial statements to be prepared.
(2) When financial statements are prepared, they must —
(a) be approved by the council of the foundation;
(b) include —
Section 43 Foundations Act 2011


Page 28 AT 17 of 2011 c

(i) a written statement recording the assets and liabilities of
the foundation on a specific date;
(ii) a written statement recording the receipts, payments and
other financial transactions undertaken by the foundation
for the period ending on the date of the statements referred
to in sub-paragraph (b)(i);
(iii) such notes as are necessary for a reasonable understanding
of the statements referred to in sub-paragraphs (i) and (ii).
(3) The accounting records must be preserved for a period of 6 years from
the end of the accounting period to which they relate or such longer
period as the council determines.
(4) The accounting records must be kept at the business address of the
foundation or at such other place as the council of the foundation thinks
fit.
(5) Where the accounting records are not kept at the business address of the
foundation, the foundation must provide to the registered agent a
written record of the physical address of the place where the records are
kept.
(6) Where the place at which the accounting records are kept is changed, the
foundation must provide the registered agent with the physical address
of the new location of the records within 14 days of the change of
location.
(7) The registered agent may —
(a) at any reasonable time specified by the registered agent inspect
the accounting records of the foundation without charge and
make copies of or take extracts from the records;
(b) require the foundation to provide originals or copies of the
accounting records to the registered agent within 14 days.
(8) The foundation must —
(a) allow an inspection under subsection (7)(a); and
(b) comply with a requirement under subsection (7)(b).
(9) A foundation which contravenes this section commits an offence.
43 Right to require financial statements to be prepared

(1) Subsection (2) applies if a foundation has not prepared financial
statements for a continuous period of 18 months or more.
(2) A person with sufficient interest may demand that financial statements
be prepared for the period —
(a) commencing at —
Foundations Act 2011 Section 44


c AT 17 of 2011 Page 29

(i) the end of the accounting period to which the preceding
financial statements relate; or
(ii) if there are no preceding financial statements, the date of
establishment of the foundation; and
(b) ending at the date specified in the demand, which must not be
later than the date of demand.
(3) A demand under subsection (2) must be in writing and deposited at the
business address of the foundation.
(4) The financial statements must be prepared by the foundation within 6
months of the date of deposit of the demand.
(5) A foundation which fails to comply with subsection (4) commits an
offence.
44 Foundation to make annual return

(1) A foundation must make an annual return to the Registrar.
(2) The annual return must be given in the form and manner published by
the Registrar and must contain the information required by the Registrar.
(3) The annual return must be made up to the foundation’s return date and
must be sent to the Registrar within one month from that date.
(4) A foundation must pay to the Registrar the published fee when the
annual return is sent.
(5) The foundation’s return date is the anniversary of the foundation’s
establishment or such other date as the Registrar considers appropriate.
(6) A foundation which contravenes this section commits an offence.
45 Amendment of the foundation instrument

(1) A foundation must notify the Registrar in accordance with subsections
(2) and (3) of any amendment made to its foundation instrument within
one month of the amendment taking effect.
(2) The notification must be given in a form and manner published by the
Registrar.
(3) It must be accompanied by —
(a) a copy of the foundation instrument as amended; and
(b) the published fee.
(4) If the Registrar is satisfied that the requirements of this Act in respect of
the amendment of the foundation instrument have been complied with,
the Registrar must enter the foundation instrument as amended in the
register and date the entry.
Section 46 Foundations Act 2011


Page 30 AT 17 of 2011 c

(5) An attempt to amend the foundation instrument of a foundation
otherwise than —
(a) in accordance with its foundation instrument and foundation
rules; or
(b) by an order of the High Court,
is of no effect.
(6) The foundation must provide a copy of any notification under subsection
(1) to the registered agent of the foundation.
(7) The registered agent must retain the copy.
(8) A foundation which fails to comply with subsection (1) or (6) commits an
offence.
(9) A registered agent who fails to comply with subsection (7) commits an
offence.
PART 4 — THE REGISTRAR

46 The Registrar

The Department must appoint a suitably experienced person or body to be the
registrar of foundations.
47 Exercise of functions of the Registrar

A function of the Registrar under this Act may, to the extent authorised by the
Registrar, be exercised by an officer on the staff of the Department.
48 Register to be kept and made available for public inspection

(1) The Registrar must keep a register for the purposes of this Act.
(2) The Registrar must include in the register the foundation instrument of
each foundation.
(3) The Registrar must on payment of any published fee, make the register
available for public inspection at any reasonable time.
(4) On payment of any published fee, the Registrar must supply a person
with a certificate stating whether or not a named body is a foundation
and, if it is, the following details as they appear in the register —
(a) the date of its establishment;
(b) its registration number;
(c) its business address;
(d) the names and residential addresses of the members of its council;
(e) whether it has paid all fees and penalties due and payable; and
Foundations Act 2011 Section 49


c AT 17 of 2011 Page 31

(f) the name and business address of the registered agent or, if there
is no such registered agent, its last registered agent.
(5) On payment of any published fee, the Registrar must supply a person
with a certified copy of the foundation instrument of a foundation as
included in the register.
(6) There is admissible in evidence in legal proceedings —
(a) a certificate supplied under subsection (4); or
(b) a certified copy of the foundation instrument supplied under
subsection (5).
49 Keeping of records by the Registrar

(1) A record delivered to the Registrar under this Act may be kept by the
Registrar in any form —
(a) that is approved by the Registrar; and
(b) that is capable of being reproduced in a legible form.
(2) The Registrar is to be taken to have complied with an obligation to keep
a record if the Registrar has complied with subsection (1) in respect of
the record.
(3) The Registrar may destroy a record kept by the Registrar if —
(a) it is an original record and the Registrar has recorded and kept the
information in it in accordance with subsection (1); or
(b) it relates to a foundation which has been dissolved more than 10
years previously.
50 Power of the Registrar to refuse documents

(1) The Registrar may refuse to accept any document delivered under this
Act if —
(a) it does not comply with this Act;
(b) it has not been duly completed;
(c) it contains any material error;
(d) it is not legible; or
(e) it is not accompanied by the published fee.
(2) If the Registrar refuses to accept a document, the Registrar must return it
to the person who submitted it together with a notice specifying the
grounds upon which the document was refused.
(3) Subject to subsection (5), a document refused by the Registrar is deemed
not to have been delivered.
Section 51 Foundations Act 2011


Page 32 AT 17 of 2011 c

(4) A person who is aggrieved by the refusal of a document by the Registrar
may appeal to the High Court within one month after the date of refusal
or such further time as the High Court may allow.
(5) On hearing an appeal under subsection (4), the High Court may confirm
the refusal or make such determination in the matter as it sees fit.
PART 5 — POWERS OF THE HIGH COURT

51 Applications to the High Court

(1) A person with sufficient interest in respect of a foundation may apply to
the High Court for the Court to take, in respect of the foundation, any of
the actions specified in this Part.
(2) Where the question or one of the questions to be determined by the High
Court is whether a person is a person with sufficient interest in respect of
a foundation, the reference in subsection (1) to a person with sufficient
interest is to be taken, for the purpose of determining that question, to
include such a person.
(3) Where the High Court considers that a person’s interest in a foundation
is sufficiently close that the person ought to be treated as a person with
sufficient interest, the High Court may determine that the person is to be
a person of sufficient interest for the purposes of this Act.
52 Power of the High Court to order compliance

(1) If the High Court is satisfied that, in respect of a foundation, a person has
failed to comply with —
(a) a requirement of this Act or of the foundation instrument or
foundation rules; or
(b) an obligation imposed on the person by this Act or the foundation
instrument or foundation rules,
the Court may, by order, require the person to comply with the
requirement or obligation.
(2) If the High Court is satisfied that a foundation, acting through its
council, has failed to carry out its objects or any of them, the Court may,
by order, require the foundation to do so.
(3) An order under this section may specify the action the person or
foundation is required to take.
Foundations Act 2011 Section 53


c AT 17 of 2011 Page 33

53 Power of the High Court to order amendment of foundation

instrument or foundation rules

(1) The High Court may order the amendment of the foundation instrument
or the foundation rules if the Court is satisfied —
(a) that the change will assist the foundation to administer its assets
or to attain its objects; or
(b) that those objects are no longer attainable and that the change will
assist the foundation to attain objects as near as reasonably
possible to those objects.
(2) If the order is to amend the foundation instrument, section 45 has effect.
(3) Without limiting subsection (1), the High Court may make an order
under subsection (1) in the event that a foundation does not have
foundation rules or that the terms of those rules cannot be readily
ascertained or are otherwise incomplete.
54 Power of the High Court to give directions

(1) This section applies if the High Court is satisfied —
(a) that if it gives a direction it will assist a foundation to administer
its assets or to carry out its objects; or
(b) that it is otherwise desirable for the Court to give a direction.
(2) The Court may give a direction as to —
(a) the meaning and effect of a provision or term in the foundation
instrument or foundation rules;
(b) the manner in which the council of the foundation is required to
carry out the administration of the foundation’s assets or the
carrying out of its objects;
(c) the functions of the council of the foundation or of any of its
members;
(d) the functions of any other person appointed under the foundation
rules;
(e) whether a person is a beneficiary;
(f) the rights of beneficiaries under the foundation as between
themselves or as between themselves and the foundation; or
(g) such other matters as the High Court considers relevant to the
foundation, its foundation instrument, its foundation rules, the
administration of its assets or the carrying out of its objects.
(3) The High Court may, in addition to giving a direction under subsection
(2), make such an order as it thinks fit to give effect to the direction.
Section 55 Foundations Act 2011


Page 34 AT 17 of 2011 c

55 Power of the High Court to protect interests under a foundation

The High Court may by order appoint a person to protect the interests of a
person who the Court is satisfied is or may come to be a beneficiary under a
foundation, where —
(a) the person is unborn; or
(b) the Court is satisfied that the person is unable to act on his, her or
its own behalf.
56 Power of the High Court to dismiss or appoint a registered agent

(1) If the High Court is satisfied that it is in the interest of a foundation to do
so, it may order —
(a) the removal of the registered agent of the foundation; or
(b) the appointment of a class 4 licenceholder to be the registered
agent of the foundation,
or do both.
(2) As a change of registered agent entails an amendment to the foundation
instrument, section 45 has effect.
57 Power of the High Court to take action on behalf of others

(1) This section applies where the High Court is satisfied, in respect of a
foundation, that a person has failed to comply with —
(a) a requirement of this Act or of the foundation instrument or
foundation rules; or
(b) an obligation imposed on the person by this Act or by the
foundation instrument or foundation rules.
(2) The High Court may, by order, comply with the requirement or
obligation on behalf of the person who has failed to do so.
(3) The Court must not do so unless it is satisfied —
(a) that to do so will assist the foundation in the administration of its
assets or the attainment of its objects; or
(b) that it is otherwise desirable that it should do so.
(4) Where the Court does so, its order has the same effect as if it were an
action taken by the person required to comply with the requirement or
obligation.
58 General power of the High Court in respect of orders

(1) An order made by the High Court under this Part in respect of a
foundation may, in particular, provide for the appointment or removal of
a person appointed under the foundation rules.
Foundations Act 2011 Section 59


c AT 17 of 2011 Page 35

(2) Any order made by the High Court under this Part —
(a) may be made on such terms; and
(b) may impose such conditions,
as the Court thinks fit.
PART 6 — CLOSING PROVISIONS

59 False or misleading statements

A person commits an offence if, when giving information to the Registrar, the
person —
(a) makes a statement which the person knows is false in a material
particular; or
(b) recklessly makes a statement which is false in a material
particular.
60 Offences

(1) A person guilty of an offence under this Act is liable on summary
conviction to a fine not exceeding £5,000.
(2) Subsection (3) applies if an offence under this Act is committed by a
foundation and it is proved that a member of the council of the
foundation or its registered agent (or a person purporting to act in either
such capacity) authorised, permitted, participated in or failed to take all
reasonable steps to prevent the commission of the offence.
(3) The member of the council or registered agent (or person purporting to
act in either such capacity), as well as the foundation, commits the
offence and is liable to the penalty provided for the offence.
(4) Subsection (5) applies if an offence under this Act is committed by a
body corporate and it is proved that a director or other officer of the
body corporate, or its registered agent (or a person purporting to act in
any such capacity) authorised, permitted, participated in or failed to take
all reasonable steps to prevent the commission of the offence.
(5) The director, officer or registered agent (or person purporting to act in
any such capacity), as well as the foundation, commits the offence and is
liable to the penalty provided for the offence.
61 Regulations

(1) The Treasury may make regulations in respect of any of the following —
(a) restricting the business that foundations may carry on;
(b) the conduct of business of foundations;
Section 61 Foundations Act 2011


Page 36 AT 17 of 2011 c

(c) permitting the continuance in the Island of foundations or
analogous bodies established outside the Island;
(d) for foundations established in the Island to be permitted to seek
continuance outside the Island;
(e) the taxation of foundations;
(f) the form and content of model foundation rules;
(g) the form and content of the accounting records and financial
statements of foundations;
(h) requiring compliance with specified accounting standards;
(i) requiring the audit of the financial statements of foundations;
(j) the qualifications of auditors of such statements;
(k) requiring auditors to comply with systems of public oversight
specified in the regulations;
(l) the winding up and dissolution of foundations;
(m) the removal of foundations from the register (by striking them off
or otherwise);
(n) the merger of foundations;
(o) any other matter where the Treasury considers that regulations
are necessary or expedient to give effect to this Act.
(2) The Isle of Man Financial Services Authority may make regulations
modifying the Company Officers (Disqualification) Act 2009 in its
application to foundations.11

(3) Regulations under subsections (1) and (2) may —
(a) provide for their contravention to be an offence and prescribe a
penalty for commission of the offence of a fine not exceeding
£5,000 on summary conviction;
(b) exempt a person from a provision of this Act to which the
regulations relate;
(c) permit a person to exercise a discretion in respect of any matters
specified in the regulations;
(d) require compliance with standards or the adoption of practices
recommended or specified from time to time (whether before or
after the making of the regulations) by a person or body specified
in the regulations;
(e) permit a person to publish fees that may be imposed by the
regulations;
(f) permit a person to publish forms and other material in respect of
any matter specified in the regulations; and
Foundations Act 2011 Section 62


c AT 17 of 2011 Page 37

(g) contain consequential, incidental, supplementary and transitional
provisions which the maker of the regulation considers to be
necessary or expedient.
(4) The power conferred by subsection (3)(g) includes the power to modify,
adapt or amend any provision of this Act or any other enactment.
(5) Regulations under this section must not come into operation unless
approved by Tynwald.
62 Fees, penalties and forms

(1) The Registrar may —
(a) set the level of any fees payable under this Act;
(b) impose a penalty for non-payment of a published fee and set the
level of that penalty;
(c) specify the form of any statement, document or form required
under this Act; and
(d) publish such fees, penalties and forms.
(2) A published fee or penalty is a debt due to the Registrar from the
foundation and may be sued for accordingly.
(3) Fees and penalties payable under this Act form part of the General
Revenue of the Island.
63 Application of bankruptcy rules in winding up

Unless regulations made under section 61(1) provide otherwise, in the winding
up of an insolvent foundation the same rules concerning rights of creditors,
proof of debts, valuation of liabilities and preferential payments as are in
operation for the time being under the law of bankruptcy with respect to the
estates of persons adjudged bankrupt apply and must be observed.
64 Foundation not precluded from being a registered charity

A foundation is an “institution” for the purposes of section 14 of the Charities
Act 1962 and a “Manx institution” for the purposes of section 15 of the Charities
Registration Act 1989.
65 [Inserts paragraph (ba) in s120 Income Tax Act 1970.]

66 [Inserts item (j) in the definition of “specified enactment” s33(4) and

inserts item (zc) in paragraph 2(2) Financial Services Act 2008.]

Foundations Act 2011 Section 66


c AT 17 of 2011 Page 39

ENDNOTES

Table of Endnote References

1
ADO remainder of Act in operation 15 November 2011 [SD1007/11]. 2
Subs (2) substituted by Company and Business Names etc Act 2012 Sch. 3
Subs (3) substituted by Company and Business Names etc Act 2012 Sch. 4
Subs (6) amended by Company and Business Names etc Act 2012 Sch. 5
Subs (7) repealed by Company and Business Names etc Act 2012 Sch. 6
Subs (8) repealed by Company and Business Names etc Act 2012 Sch. 7
Subs (9) repealed by Company and Business Names etc Act 2012 Sch. 8
Subs (3) amended by SD2015/0090 as amended by SD2015/0276. 9
Para (a) amended by Company and Business Names etc Act 2012 Sch. 10
Para (a) amended by Company and Business Names etc Act 2012 Sch. 11
Subs (2) amended by SD2015/0090 as amended by SD2015/0276.