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Approves The Framework Law Of Foundations And Changes The Civil Code, Approved By Decree-Law No. 47344 Of 25 November 1966

Original Language Title: Aprova a lei-quadro das fundações e altera o Código Civil, aprovado pelo Decreto-Lei n.º 47344, de 25 de novembro de 1966

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CHAIR OF THE COUNCIL OF MINISTERS

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PROPOSED LAW NO. 42 /XII

Exhibition of Motives

In the framework of the Economic and Financial Assistance Programme for Portugal, arising from the

agreements concluded between the Portuguese State, the European Union, the Monetary Fund

International and the European Central Bank is predicted, with the aim of rationalizing the

public charges, that the creation of new foundations is the subject of strict control and

that a legal regime for its creation, operation, monitoring, be adopted,

reporting, assessment of performance and extinction.

In line with the Economic and Financial Assistance Programme for Portugal, the nineteenth

Constitutional government acknowledges, in its programme, the urgency of the reduction of the " State

parallel ", usually identified with institutes, foundations, public entities

business and public companies at the level of central, regional and local administration.

The arbitrary use by the State, at its various levels, of the fundational institute has by

times led to the withdrawal of public entities from the budgetary perimeter and the perversion of the

nature and logic of the foundations, which has caused serious damage to the foundational principle,

which is a noble principle gutted in the altruistic act of disposition of a heritage to the

pursuit of the purposes of social interest.

On the other hand, the Court of Auditors, in the context of an audit of the service of

recognition of foundations, approved, on January 27, 2011, a report that

identifies a set of embarrassments that lack solution.

The Court of Auditors emphasized the difficulty in identifying with rigor the universe

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current fundational, in particular the relative to the state's participation in law foundations

private, the inconvenience of the existence of diverse entities responsible for the

recognition of founders of private law and the non-existence of an activity

systematic monitoring and control of the foundational ones, recommending the

promotion of legislative procedures with a view to the approval of a legal regime

framework for foundations, whether private or public, what attack and resolve frailties

pointed out.

It was in this general framework that the nineteenth Government has already begun acting, presenting a

proposed law that launched a census to foundations.

Thus, Law No. 1/2012 of January 3 mandated the realization of a census directed at the

foundations, national or foreign, to pursue their purposes on national territory,

with a view to assessing the respective cost / benefit and financial viability and decide on the

your maintenance or extinction, on the continuation, reduction or cessation of supports

financial granted, as well as on the maintenance or cancellation of the status of

public utility.

This initiative has already triggered a process of surveying and characterizing reality

fundational, justifying now the presentation by the Government of a new regime

legal of the foundations that concretize the objectives of its Programme and comply with the

commitments arising from the Economic and Financial Assistance Program to Portugal.

The approval of a framework law of the foundations presupposes the introduction of some

amendments to the chapter of the Civil Code regulating these entities, with the evident

concern, however, to do so to the extent of the strictly necessary.

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It is what makes the present proposal, available still on the transitional arrangements for the

suitability of the current situation to the new reality that is intended to regulate.

In that sense, a six-month period for organic and organic suitability is established.

statues that prove to be mandatory, provided that they are not contrary to the express will

of the founder, as well as for the confirmation of the public utility statutes that have

been the subject of administrative allocation.

The framework law obeys a central concern, which is to return the fusing scheme

to its original altruistic nature.

It is in that sense that clear rules should be established to prevent abuses in the use of the

fundational institute, which becomes exclusive to the foundations recognized in the framework of the

new regime the term foundation in the respective legal denomination and which is seeking a

evident separation between the private institution of foundations and its institution by the state,

in this case with the assumed aim of putting a brake on the proliferation of the "parallel state".

The second major concern is to create strict control mechanisms and a regime

more demanding, for all the situations in which the use of money is concerned

public, either directly or by the benefits arising from the public utility, the

same time as it opens up space to autoregulation, encouraging code approval

of conduct.

The framework law is systematized in three headings: general provisions, foundations

private and public foundations.

Title I contains the general provisions applicable to all types of foundations, regulating

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the form of acquiring legal personality by the foundations; formulating the prohibition of

use of the fundational status to harm heritage creditors; subjecting the

foundations to the fulfillment of a set of transparency obligations; introducing

limits on expenditure on staff and administration, on the foundations that

receive public supports or have tax benefits; prohibiting the disposal of goods that

they integrate the initial heritage of foundations and that they review of special significance for the

respective ends.

Title II, relating to private foundations, contains general provisions relating to nature,

object, creation and regime, to the processes of recognition and acquisition of the status of

public utility, the organization and modification, merger and extinction of private foundations.

The master's trave of the regime is, of course, the primed of respect pala will of the

founder.

Another relevant aspect is the purpose of, while maintaining the recognition regime

administrative, promote transparency and independent scrutiny on the

procedures of the Administration, for the purpose of instituting a Board

ungovernmentalized that accompanies and issues opinions on all the activity of the

Administration in the matter of foundations.

Salient to the prediction of clear rules as to: the role of public entities in the creation,

supervision and control of the foundations; to the recognition procedure; to applications for

acquisition of the status of public utility, subject to a three year grace period of

effective and relevant functioning; to the organization and responsibility of organ holders;

the streamlining and simplification of recognition and extinction procedures.

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To compatibilize the general regime of the framework law with the legislation currently in force, and

taking into consideration the specificities of the universe of the foundations of solidarity

social, the foundations of cooperation for the development and foundations that have the

purpose of creating private higher education institutions, rules are provided for

specific to each of these situations.

Title III, relating to public foundations, establishes the scheme applicable to foundations

public, whether in public law or private law, which are generally subject to the

regime of public legal persons, specifically the framework law of public institutes,

resonating the specificities of regional and local public foundations.

It is further envisaged that the State, Autonomous Regions, local authorities, the other persons

Autonomous administration collectives and the remaining public collective people stay

prevented from creating or participating in new public foundations of private law.

The public foundations of private law already created and recognized become subject to the scheme

of the public foundations of public law, with some specificities. With these measures

aims to staunch the multiplication of the "parallel state", as referred to in the Programme of the

Government, and submit to a stricter control the creation of new foundations by

of the State, Autonomous Regions, local authorities, other collective persons of the

autonomous administration and too many public collective people.

Finally, it should be reflected that the framework law does not apply to higher education institutions.

public provided for in Chapter VI of Title III of the Legal Regime of Institutions of

Higher Education and the Agency for Evaluation and Accreditation of Higher Education, entity

independent and whose statutes are defined in a diploma of their own in the framework of that

Legal Regime.

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Refer, too, that opens an exception to the exclusive of the use of the foundation denomination

for the Foundation for Science and Technology, I.P., which is not a true foundation, but

whose denomination is justified in a framework of international relationship.

The fixation of the values referring to the relevant annual earnings for the purpose of

submission of the accounts of the foundations the external audit and the amount of the appropriation

sufficient equity for the purposes of recognition of private foundations is remitted

to portaria, in order to avoid its downturn over time, being intent of the

Government that at the initial time these values are, respectively, € 2000000 (two

million euros) and of € 250000 (two hundred and fifty thousand euros).

The hearing of the self-governing bodies of the Autonomous Regions of the Autonomous regions was promoted

National Association of Portuguese Municipalities and the Portuguese Centre for Fundamenities.

Thus:

Under the terms of the paragraph d) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following proposal for a law:

Article 1.

Object

This Law shall adopt the framework law of the foundations and amend the Civil Code, approved by the

Decree-Law No. 47344 of November 25, 1966.

Article 2.

Approval of the framework law of foundations

It is hereby approved in annex to this Act, of which it is an integral part, the framework law of the

foundations.

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Article 3.

Amendment to the Civil Code

Articles 158, 162, 166, 185, 188, 191, 192, 193 and 194, 193, 193 and 194 of the Code

Civil, approved by the Decree-Law No. 47344 of November 25, 1966, pass to

next essay:

" Article 158.

[...]

1-[...].

2-The foundations referred to in the previous article acquire legal personality

by recognition, which is individual and the competence of the authority

administrative.

Article 162.

[...]

The statutes of the legal person shall designate the respective bodies, among them

a collegial body of administration made up of an odd number of

holders of which one will be the president, and a supervisory body, which may

be made up of a single tax or a unique number of holders, of the

which one will be the president.

Article 166.

Advertising

1-They shall apply to legal persons regulated in this chapter the provisions

legal relating to commercial companies, in regard to the publication of the

respective constitution, headquarters, statutes, composition of social bodies and

still reports and annual accounts, duly approved, as well as the

opinions of the respective supervisory bodies.

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2-The act of constitution, the statutes and their amendments do not produce

effects with respect to third parties as long as they are not published in the terms

of the previous number.

Article 168.

Form and communication

1-[...].

2-[...].

3-[ Revoked ].

Article 185.

[...]

1-The foundations aim to pursue the purposes of social interest, and may be

instituted by act between living or by will.

2-[ Previous Article No 3 ].

3-[ Previous Article No 4 ].

4-At the act of institution of the foundation, when it consists of public scripture, well

as, in any case, the statutes and their amendments, the

provisions of Article 166.

Article 188.

Recognition

1-The recognition must be required by the institutor, his heirs or

tested executors, within a maximum of 180 days from the date of

institution of the foundation, or be officiously promoted by the entity

competent.

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2-The recognition matters the acquisition, by the foundation, of the goods and rights

that the act of institution assigns to you.

3-The recognition can be denied:

a) If the purposes of the foundation are not considered to be of social interest

by the competent entity, specifically if they take advantage of the

institutor or his family or to a restricted universe of beneficiaries

with them related;

b) If the affected heritage is insufficient or unsuitable,

specifically if it is burdening with charges that they commit

the realization of the statutory purposes or if it does not generate income

sufficient to ensure the achievement of those ends;

c) If the statutes present any discompliance with the law.

4-A competent entity for the recognition will promote the publication in the

official newspaper, at the expense of the foundation, of the recognition decision, of the act

of institution and of the statutes and their amendments, without what such acts do not

produce effects in relation to third parties.

5-[ Previous Article No 3 ].

Article 190.

[...]

1-Ouvida the administration, and also the founder, if it is alive, the entity

competent for the recognition can broaden the end of the foundation,

where the social profitability of the available means advises him.

2-A same entity may yet, after the hearings provided for in the number

previous, assign the foundation a different end:

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a) [ Previous Article (a) of paragraph 1 ];

b) [ Previous Article (b) of paragraph 1 ];

c) [ Previous Article (c) of paragraph 1 ].

3-[ Previous Article No 2 ].

4-There is no place at the change of the end, if the act of institution forbids it or

prescribe the extinction of the foundation.

Article 191.

[...]

1-[...].

2-[...].

3-The foundations can only accept inheritances to the benefit of inventory.

Article 192.

[...]

1-[...].

a) [...];

b) [...];

c) With the closure of the insolvency proceedings, if not

admissible the continuity of the foundation.

2-[...].

a) [...];

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b) When the developed activities demonstrate that the real end does not

coincides with the end provided for in the act of institution;

c) When they have not developed any relevant activity in the

three years precedent.

3-The foundations may still be extinguished by court decision, in action

intended by the Public Prosecutor's Office or by the competent entity for the

recognition:

a) When its end is systematically pursued by means

illicit or immoral;

b) When its existence becomes contrary to public order.

Article 193.

[...]

When any of the extinctive causes provided for in paragraph 1 of the article occur

previous, the administration of the foundation communicates the fact to the competent entity

for recognition, in order to this declare the extinction.

Article 194.

[...]

1-A The extinction of the foundation triggers the opening up of the settlement process

of its heritage, competing with the competent entity for the

recognition to make the arrangements that it judges convenient.

2-In the absence of special arrangements to the contrary, the provisions of the

article 184. "

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Article 4.

Addition to the Civil Code

It is added to the Civil Code, approved by the Decree-Law No. 47344, of November 25 of

1966, Article 190-A, with the following essay:

" Article 190.

Merger

On a proposal from the respective administrations, or in the alternative to the decision

referred to in paragraph 2 of the preceding Article, and after the hearings provided for in paragraph 1 of the

same article, the competent entity for the recognition may determine

the merging of two or more foundations, of analogous purposes, relying on the such non-

opposes the will of the founders. "

Article 5.

Abrogation standard

Articles 1 and 2 of the Decree-Law No. 284/2007 of August 17 are repealed.

Article 6.

Transitional and final standards

1-The amendments to the Civil Code and the provisions of the framework law of the foundations, adopted in

annex to this Law, apply to the private foundations already set up, in the process of

recognition and recognized, unless they are contrary to the will of the

founder, in which case this one prevails.

2-The provisions of the framework law of the foundations, adopted in annex to this Law, shall apply to

public foundations already created and recognized.

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3-Within the maximum period of 60 days after the entry into force of this Law, the services of

competent entity for the recognition must notify the applicants with

pending applications for the decision of the necessary representations to the compliance of the new

scheme arising from the framework law of the foundations, adopted in annex to this Law.

4-Within the maximum period of six months after the entry into force of this Law, the foundations

private persons possessing public utility status, under penalty of expiry of the statute,

and public foundations are obliged to appropriate their denomination, their statutes

and the respective organic to the provisions of the framework law of the foundations, approved in annex to the

this law, without prejudice to the provisions of the final part of paragraph 1.

5-The provisions of this Law shall prevail over the statutes of the foundations referred to in the

previous number that, the deadline mentioned therein, have not been reviewed and

adapted, if necessary.

6-Within the maximum period of six months after the entry into force of this Law, the foundations

private law and public foundations of private law that possess utility status

administratively assigned public are required to apply for the respective

confirmation, under penalty of the respective expiry.

7-Except for the provisions of the previous figures the higher education institutions

public with enhanced autonomy as referred to in Chapter VI of Title III of the Law

n. 62/2007 of September 10 and the Agency for the Evaluation and Accreditation of Teaching

Superior, created by the Decree-Law No. 369/2007 of November 5, to which it is not

applies the framework law of the foundations, approved in annex to this Law.

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8-Exceptions of the provisions of Article 8 (1) of the framework law of the foundations, adopted

in annex to this Law, the Foundation for Science and Technology, I.P., created by the

Decree-Law No. 152/2007 of April 27.

Seen and approved in Council of Ministers of January 26, 2012

The Prime Minister

The Deputy Minister and Parliamentary Affairs

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Attachment

(referred to in Article 2)

Framework Law of Fundaments

Title I

General provisions

Article 1.

Object

1-A present framework law sets out the principles and standards by which they govern

foundations.

2-The standards set out in this Framework Law shall be of imperative application and prevail

on the special standards currently in force, save to the extent that the other

result expressly from the present framework law.

Article 2.

Scope of application

1-A This framework law is applicable to Portuguese foundations and foreign foundations

to develop their purposes in national territory, without prejudice to the provisions of the

these in applicable international law, particularly in the European Convention on the

Recognition of the Legal Personality of International Organizations no

Government, ratified by the Decree of the President of the Republic No 44/91, of 6 of

september, and in Article 5 of this diploma, and with the exclusion of the foundations created

per act of European derivative law.

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2-A This framework law is also applicable to the foundations of social solidarity

covered by the Statute of Particular Social Solidarity Institutions, approved

by Decree-Law No. 119/83 of February 25, amended by the Decrees-Law

n. ºs 386/83, October 15, 9/85, January 9, 89/85, April 1, 402/85, 11

of October, and 29/86, of February 19.

3-The foundations instituted by religious confessions are regulated by the Law of Freedom

Religious, adopted by Law No. 16/2001 of June 22, and by Articles 10 and following

of the Concordata between the Portuguese Republic and the Holy See, ratified by the Decree of the

President of the Republic No 80/2004 of November 16.

Article 3.

Concepts

1-A The foundation is a collective, non-profit-making person endowed with a heritage

sufficient and irrevocably affected to the pursuit of an end of social interest.

2-Are considered purposes of social interest those that translate to the benefit of a

or more categories of distinct people from the founder, their relatives and related, or from

people or entities to it connected by friendship or business relations,

specifically:

a) The assistance to persons with disabilities;

b) The assistance to refugees and emigrants;

c) Assistance for victims of violence;

d) The cooperation for development;

e) The education and vocational training of citizens;

f) The preservation of historical, artistic or cultural heritage;

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g) The prevention and eradication of poverty;

h) The promotion of citizenship and the protection of the rights of man;

i) The promotion of culture;

j) The promotion of social and community integration;

l) The promotion of scientific research and technological development;

m) The promotion of the arts;

n) The promotion of actions of humanitarian support;

o) The promotion of sport or physical well-being;

p) The promotion of the European and international dialogue;

q) The promotion of entrepreneurship, innovation or development

economic, social and cultural;

r) The promotion of employment;

s) The promotion and protection of health and the prevention and control of the disease;

t) The protection of the environment or natural heritage;

u) The protection of citizens in old age and disability and in all situations of lack

or decreased means of subsistence or capacity for the work;

v) The protection of consumers;

x) The protection and support of the family;

z) The protection and support of children and young people;

aa) The resolution of the housing problems of populations;

bb) The fight against any form of unlawful discrimination.

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3-For the purposes of this Framework Law, they shall be considered:

a) "Institution" or "creation", the attribution of heritage means to the future person

fundational collective;

b) "Founder" or "institutor", the entity that carries out the allocation of means

heritage to the future fundable legal person;

c) "Financial support", all and any kind of grant, subsidy, benefit,

aid, aid, sponsorship, compensation, compensation, provision, guarantee,

grant, assignment, payment, donation, participation or financial advantage and

any other support regardless of their nature, designation and

modality, temporary or definitive, including movable property, real estate and other

rights, which are granted by the direct or indirect administration of the State,

Autonomous Regions, local authorities, other legal persons of the

autonomous administration and too many public legal persons;

d) "Incomes", the increases in economic benefits during the period

accounting, in the form of inflows or increases in assets or decreases of

liabilities that result in increases in the equity funds, other than the

related to the contributions of the founders in these funds.

Article 4.

Types of foundations

1-The foundations can take on one of the following types:

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a) "Private Foundations", the foundations created by one or more persons of law

private, in conjunction or not with public legal persons, provided that these,

isolated or jointly, do not detain on the foundation an influence

dominant;

b) "Public Foundations of public law", the foundations created exclusively

by public legal persons, as well as the personalized funds created

exclusively by public legal persons under the framework law of the

Public Institutes, adopted by Law No. 3/2004 of January 15, amended by the

Law No. 51/2005 of August 30 by the Decree-Law No. 200/2006 of 25 of

October, by the Decree-Law No. 105/2007 of April 3, by Law No. 64-A/2008,

of December 31, by the Decree-Law No. 40/2011 of March 22 by the

Resolution of the Assembly of the Republic paragraph 86/2011 of April 11 by the Law

n. 57/2011 of November 28 and by the Decree-Law No. 5/2012 of 17 of

January, henceforth designated by law-framework of public institutes;

c) "Public Foundations of private law", the foundations created by one or more

public legal persons, in conjunction or not with persons of private law,

provided that those, isolated or jointly, hold an influence

dominant over the foundation.

2-It is considered to exist "dominant influence" in the terms of the previous number whenever

exists:

a) Exclusive or majority allocation of the goods that integrate the initial heritage of the

foundation; or

b) Right to designate or impeach the majority of the holders of the organs of

administration or supervision of the foundation.

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3-Should the influence of private law and public law institutions on the

foundation is identical, by virtue of both the criteria referred to in the preceding paragraph, the

foundation takes on private or public nature depending on the qualification it has

been awarded by the institutors in the act of institution.

Article 5.

Foreign foundations

1-A foundation created under a law other than Portuguese intending to proceed

in a stable manner in Portugal your purposes must have a permanent representation in

Portuguese territory, as provided for in the paragraph b) of Article 4 (1) of the Register

National of Collective People, approved by the Decree-Law No. 129/98 of May 13.

2-A The opening of permanent representation depends on prior authorization of the entity

competent for the recognition and presupposes the verification of the constant requirements

of Article 22.

3-The foundations covered by the European Convention on the recognition of

Legal Personality of the non-Governmental International Organizations referred to in the

n Article 2 (1) applies to the scheme laid down therein.

Article 6.

Acquisition of the legal personality

1-The foundations acquire legal personality by the recognition.

2-The recognition of private foundations is individual and competes with the Prime Minister,

with the faculty of delegation.

3-The recognition of public foundations results directly from the act of its creation.

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Article 7.

Defense of the fundational institute

1-The foundations must approve and publicize codes of conduct that self-regulate good

practices, particularly on the strategic participation of the recipients of their

activity, the transparency of their accounts, the conflicts of interest, the

incompatibilities and the limitation on the renewal of its organs, among others.

2-It is essential condition of the recognition of any foundation that the disposition of goods

or values in favour of its heritage is not an act practiced in prejudice to the

creditors.

3-Previously to the recognition, the institutors, their heirs or the performers

testamentees or the appointed administrators in the act of institution declare, in

document of its own and under commitment of honour, that there are no doubts or disputes,

as yet as potential, on the assets assigned to the foundation.

4-A The existence of doubts or litigation, albeit potential, on the assets allocated to the

foundation makes incurres its perpetrators in criminal responsibility for false

statements and determines the immediate revocation of the act of recognition.

5-In case of pauliana imputation, the recognition and all its effects suspend-

if up to the end of the respective court case.

6-The recognition is void, should the Paulian challenge be dismissed by proceeding

sentence transitioned on trial.

Article 8.

Registration

1-A The use of the term foundation in the denomination of legal persons is exclusive to

entities recognized as foundations pursuant to this framework law.

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2-Public foundations compulsorily use acronyms "IP" or "FP" at the end of the

their respective designation, depending on whether they are of public law or private law.

3-Portuguese foundations and foreign foundations that develop their ends in

national territory are subject to registration under the law.

4-The record referred to in the preceding paragraph is shown in a single database, maintained and

made available for public consultation by the Institute of Registries and Notariat, I.P. (IRN,

I.P.).

5-A grant of financial support by the direct or indirect administration of the State,

Autonomous Regions, local authorities, other legal persons of the administration

autonomous and too many public legal persons depends on the indication on the part of the

foundation of the registration number assigned to it in the terms of the numbers

previous.

Article 9.

Transparency

1-Portuguese foundations and foreign foundations that exert their activity in

national territory are bound to:

a) Communicating to the services of the Presidency of the Council of Ministers the composition

of the respective bodies in the 30 days following their designation, modification or

replacement;

b) Refer to the services of the Presidency of the Council of Ministers copy of the

annual reports of accounts and activities, up to 30 days after your approval;

c) Submit the accounts to an external audit;

d) Make permanently available on your page of the internet the following information:

i) Copy of the acts of institution and recognition of the foundation;

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ii) Updated version of the statutes;

iii) Copy of the act of granting the status of public utility, when it is the

case;

iv) Identification of the institutors;

v) Updated composition of the social organs and date of start and term of the

respective mandate;

vi) Identification of the number and nature of the linkage of the collaborators of the

foundation;

vii) Management reports and accounts and opinions of the supervisory body

relating to the last three years;

viii) Reports of activities relating to the same period;

ix) Annual external audit report, when required.

2-Except for the provisions of the paragraph c) from the previous number the foundations whose

annual income will be lower than the value set by porterie of the members of the

Government responsible for finance and the recognition of foundations.

3-In the case of private foundations with status of public utility and foundations

public, are still made permanently available on your page of the internet the

following information:

a) Description of the initial heritage and, where appropriate, of the patrimony affection

by direct or indirect administration of the State, Autonomous Regions, authorities

locals, other people from the autonomous administration and too many legal persons

public, as well as of their current value;

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b) Amount discriminated against financial supports received in the last three years

of the direct and indirect administration of the State, Autonomous Regions, authorities

locals, other legal persons of the autonomous administration and too many people

public collective.

4-The annual report of activities and of accounts must contain clear and sufficient information

on the types and overall amounts of the benefits granted to third parties and the

donations or subsidies received, as well as on the management of the heritage of the

foundation.

5-A information with annual character becomes compulsorily available to the public

departure from April 30 of the year subsequent to that which it relates to.

6-Private foundations are subject to the declarative regime provided for in the Decree-Law

n ° 8/2007 of January 17, which creates the Simplified Business Information (IES),

changed by the by the Decrees-Law No. 116/2008 of July 4, 69-A/2009, of 24 of

march, and 292/2009, of October 13, and to the accounting standards regime for

the entities of the non-profit sector, provided for in the Decree-Law No. 36-A/2011, of 9 of

March.

7-Public foundations are subject to the economic-financial management regime and

patrimonial provided for in the framework law of public institutes, in the terms provided for in the

Title III of this Framework Law.

8-Failure to comply with the provisions of this Article shall prevent access to any supports

financial during the economic year following the one in which the

default and as long as this last.

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Article 10.

Limit of own expenses

1-In the case of private foundations with status of public utility and foundations

public, expenses in personnel and administration may not exceed the following

limits:

a) As for the foundations whose activity consisted predominantly of the concession

of benefits or financial supports to the community, a tenth of its

annual income, owing at least two thirds of these to be spent on

direct pursuit of the statutory purposes;

b) As for the foundations whose activity consists predominantly in sustaining

of own delivery services to the community, two-thirds of its

annual earnings.

2-Failure to comply with the provisions of the preceding paragraph shall determine the expiry of the statute

of public utility that has been assigned to them.

Article 11.

Disposal of goods that integrate the foundation's initial heritage

In the case of private foundations with status of public utility and public foundations, the

disposal of assets from the foundation that have been assigned to it by the founder or

founders, as such specified in the act of institution, and that they review themselves of special

meaning for the purposes of the foundation, it lacks, under penalty of nullity, permission from the

competent entity for the recognition.

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Article 12.

Fate of the goods in the event of extinction

1-In the absence of express provision of the institutor on the fate of the goods in the event of

extinction, in the act of institution, the remaining patrimony after liquidation is delivered to

an association or foundation of analogous purposes, designated according to a criterion of

precedence set by the organs of the foundation or by the competent entity for the

recognition, by this order.

2-In case the designated entity does not accept the donation, another of the analogous purposes is designated,

second the same criterion of precedence.

3-The means of allocation of the remaining heritage provided for in the figures

previous without there has been acceptance, the goods revert in favour of the State.

Article 13.

Advisory Board

1-Within the framework of the Presidency of the Council of Ministers shall operate a Council

Advisory of the Founders, composed of five members, so designated:

a) Three personalities of acknowledged merit, proposals by associations

representative of the foundations and designated by the Prime Minister, one of the

which presides;

b) A representative of the Ministry of Finance and a representative of the Ministry

of Solidarity and Social Security, designated by the respective Ministers.

2-A The designation of the members of the Advisory Board is published in the Journal of the Republic ,

and must be accompanied by the publication of the academic and professional curriculum of each

one of the members.

3-The term of office of the members of the Advisory Board is five years, not renewable and only

cesses with the possession of the new members.

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4-The members of the Advisory Board shall be independent in the performance of their duties

and unremovable.

5-Compete to the Advisory Board:

a) Issue opinion on the administrative acts concerning the foundations;

b) Pronouns on the results of supervisory actions to foundations;

c) Issue opinion on any matter pertaining to the foundations, at the request of the

competent entity for the recognition;

d) Take position, on your initiative, on any matter concerning the foundations

of the competence of the competent entity for the recognition.

6-The members of the Advisory Board are not remunerated, without prejudice to the right to

payment of expenses with the displacements, arising from the duties exercised, in the

expected terms for the generality of workers in public functions.

Title II

Private foundations

Chapter I

General regime

Section I

Nature, object, creation and regime

Article 14.

Nature and object

1-Private foundations are legal persons of private law, with no profit end,

endowed with the goods and economic support necessary for the pursuit of the purposes of

social interest.

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2-Private foundations can aim at the pursuit of any end of social interest.

Article 15.

Creation

1-Private foundations can be created by one or more persons of private law

or by persons of private law with public legal persons, provided that these,

isolated or jointly, do not lay down on the foundation a dominant influence.

2-The foundations of social solidarity are created, exclusively, on the initiative of

private individuals pursuant to the Statute of Private Social Solidarity Institutions

(IPSS), approved by the Decree-Law No. 119/83 of February 25, amended by the

Decrees-Law No 386/83 of October 15, 9/85, January 9, 89/85, April 1,

402/85, of October 11, and 29/86, of February 19.

3-The foundations referred to in the preceding paragraphs are in the terms of civil law.

Article 16.

Participation of public entities

1-A participation of public entities in the creation of private foundations depends on

prior authorization, to which it is granted:

a) By the Government, in the case of State participation;

b) By the Regional Government, in the case of the participation of the Autonomous Regions or

integrated entities in their indirect administration;

c) By the Ministers of Finance and guardian, in the case of the participation of entities

integrated into the indirect administration of the State;

d) By the Municipal Assembly, in the case of the participation of municipalities, in the terms

of the paragraph l) of Article 53 (2) of Law No 169/99 of September 18;

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e) By the general council, general assembly or equivalent body, in the case of

participation of public associations or integrated entities in the

autonomous administration, pursuant to the framework law of public institutes.

2-Under penalty of nullity of the relevant acts and personal responsibility of whom the

has subscribed or authorized, public entities are prevented from practicing or approving,

create or participate in the creation of private foundations whose revenue provenham exclusive

or predominantly of monies from the annual ordinary budget of the entity or

public entities instituidoras or whose initial heritage results exclusive or

predominantly of goods allocated by public entities.

3-Private foundations that benefit from financial supports are subject to surveillance

and control of the competent services of the Ministry of Finance.

Article 17.

Institution and its revocation

1-Private foundations can be instituted by act between living or by will.

2-A institution for acts between living must appear in public scripture and becomes

irrevocable as soon as it is required the recognition or principie the respective

officiating process.

3-To the heirs of the Institutor it is not allowed to revoke the institution, without prejudice to the

willing about the legitimation succession.

4-At the act of institution of the private foundation, when it consists of public scripture, well

as, in any case, the statutes and their amendments, the provisions of the article shall apply.

166. of the Civil Code.

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Article 18.

Act of institution and statutes

1-In the act of institution must the institutor state the end of the foundation and specify the goods

and rights that are assigned to it.

2-In the act of institution or in the statutes must the institutor arrange yet on the

the headquarters, organization and operation of the foundation, regulate the terms of its

processing or extinction and setting the fate of the respective goods.

Article 19.

Statutes lawn by diverse person of the institutor

1-In the absence of statutes laundered by the institutor or insufficiency of them, by constying the

institution of will, it is the executors of this who compete to draw up or

complete them.

2-A The full or partial drafting of the bylaws lies with the competent entity itself

for the recognition of the foundation, when the institutor did not do so and the

institution does not consume testament, or when the testamentary executors do not

wash within the year subsequent to the opening of the succession.

3-In the drafting of the bylaws will be taken into account, as far as possible, the real will

or presumptive of the founder.

Section II

Recognition and status of public utility

Article 20.

Recognition

1-The recognition of private foundations is the competence of the Prime Minister, with

the faculty of delegation, and observe the procedure laid down in the following articles.

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2-The recognition of foundations matters the acquisition of the goods and rights that the act of

institution assigns them.

3-Redear the recognition of the foundation or initiated the respective officious process of

recognition, the institutor, its heirs, the testamentary executors or the

designated administrators in the act of institution have legitimacy to practice acts of

ordinary administration with respect to the assets and rights assigned to the foundation, provided that

such acts are indispensable for their conservation.

4-Up to the recognition, the institutor, his heirs, the testamentary executors or

the appointed administrators in the act of institution respond personnel and severally

by the acts practiced on behalf of the foundation.

Article 21.

Legitimacy to apply for recognition

1-The recognition of private foundations may be required:

a) By the institutor, institutors or their heirs;

b) By the representative of the institutors;

c) By the testamentary executor of the institutor;

d) By the notary who has laundered the act of institution.

2-The recognition must be required within the maximum period of 180 days from the

institution of the foundation or be officiously promoted by the competent entity for

the recognition.

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Article 22.

Request for recognition

1-The recognition procedure starts with the submission of the respective application

and is carried out exclusively through the filling of the electronic form

appropriate and in accordance with the constant indications of the portal of the Presidency of the

Council of Ministers, at the Internet .

2-The form contains, in particular, the following elements:

a) Identification of the applicant and justification of its legitimacy;

b) Documents that prove the institution of the foundation and the identification of the

institutor or instituters and, in the latter case, of the respective contributions to

the heritage of the foundation or for the financing of its activity;

c) Proof of sufficient initial equity endowment;

d) Descriptive memorandum of the end or purposes of the foundation and its areas of acting;

e) Detailed relationship of the assets allocated to the foundation and indication of the donations

assigned to it and, well thus, of the enduring grant contracts, if

exist;

f) Commitment of honour that there are no doubts or disputes about the goods

affections to the foundation;

g) Assessment of the furnishing heritage allocated to the foundation, by the idoneo expert;

h) Bank statement proving the initial pecuniary amount allocated to the

foundation;

i) Certificate of authorization, in accordance with Article 16;

j) Text of the statutes and indication of the date of its publication;

l) An indication of the addresses of the delegations, if they are foreseen;

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m) Indication of the names of the people who integrate or will integrate the organs of the

foundation.

3-Saved in the case of foundations for the purpose of establishment of educational establishments

higher, to which enhanced heritage guarantees may be required, it is presumed that

there is sufficient equity endowment under the terms of the ( c) from the previous number when

the heritage of the foundation is equal to or greater than the value set in the porterium referred to in the

n Article 9 (2).

4-If the initial endowment of the foundation includes real estate must be presented, still, the

following documents:

a) Proof of the matrix situation of each immovable;

b) Proof of the predial situation of each immovable;

c) Proof of renunciation of the exercise of the right of legal preference per part

of the State, Autonomous Regions, municipalities and other public legal persons

or public companies, where applicable;

d) Assessment of real estate by idoneo expert.

5-In the analysis of the application for recognition, the instructor organ may, in the use of its

competence in the matter, request other elements that you understand necessary for the

decision.

6-A The final decision is taken within a maximum of 90 days from the entry of the application for

recognition.

Article 23.

Refusal of recognition

1-Constitutions ground of refusal of recognition the following circumstances:

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a) The lack of the elements referred to in the previous article;

b) The purposes of the foundation are not considered to be of social interest,

particularly if you take advantage of the institutor or your family or a universe

restricted of beneficiaries with them related;

c) The insufficiency of the affected goods for the pursuit of the end or purposes targeted

when there are no fused expectations of insufficient supply of the insufficiency,

particularly if they are burdening with charges that compromise the

fulfilment of the statutory purposes or if they do not generate sufficient income for

guarantee the achievement of those ends;

d) The disconformity of the statutes with the law;

e) The existence of omissions, addictions or impairings affecting the formation and

externalisation of the will of the actors in the act of constitution or in the

documents that should instruct you;

f) The nullity, nullability or ineffectiveness of the act of institution;

g) The existence of doubts or litigation, even if potential, on the assets allocated to the

foundation.

2-A refusal of recognition of the foundation by insufficiency of means provided for in paragraph c)

of the previous number determines:

a) The ineffectiveness of the institution of the foundation, if the institutor is live or the institutor

or instituters are legal persons;

b) The delivery, unless statutory provision to the contrary, of the goods to an association

or foundation of analogous purposes, to be designated by this order:

i) By the institutor in the act of institution;

ii) By the foundation's own organs;

iii) By the competent entity for the recognition.

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Article 24.

Status of public utility

1-Private foundations can acquire the status of public utility by checking themselves,

cumulatively, the following requirements:

a) Develop, not-for-profit, relevant activity in favor of

community in areas of social relief such as the promotion of citizenship and the

human rights, education, culture, science, sport, associativism

young, the protection of children, young people, elderly people, disadvantaged people,

as well as from citizens with special needs, the protection of the

consumers, the protection of the environment and natural heritage, combat

discrimination based on gender, race, ethnicity, religion or in any other

form of legally prohibited discrimination, the eradication of poverty, the

promotion of health or physical well-being, health protection, prevention and

control of disease, entrepreneurship, innovation and development

economic and the preservation of cultural heritage;

b) They are regularly constituted and are governed by statutes drawn up in

compliance with the law;

c) Do not develop, by main title, economic activities in competition

with other entities that cannot benefit from the status of usefulness

public;

d) Possess the appropriate human and material means in compliance with the

statutory objectives.

2-Private foundations can only apply for the status of public utility at the end of three

years of effective and relevant functioning, save if the institutor or instituters

majority already possesses status of public utility, in which case such status may

be immediately requested.

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Article 25.

Granting of the status of public utility

1-A The granting of the status of public utility, as well as its cancellation, is from the

competence of the Prime Minister, with the faculty of delegation.

2-The application for the granting of the status of public utility is carried out exclusively

by filling in the appropriate electronic form and in accordance with the

referrals listed in the portal of the Presidency of the Council of Ministers, in the Internet .

3-The form contains, in particular, the following elements:

a) The identification of the applicant foundation;

b) The purposes of public utility in function of which it is organized;

c) The fundamentals that, in their view, support the granting of the status of

public utility;

d) The possible provision of the consent for the consultation of the respective situation

Tax or regularized contributory, pursuant to Article 4 (2) of the

Decree-Law No 114/2007 of April 19;

e) Name and quality of the person responsible for filling the application.

4-The application is undue in the absence of any of the requirements set out in the preceding article.

5-The status of public utility is granted by the five-year term, which may be

renovated, by equal and successive periods, upon submission of a request for

renewal.

6-The status of public utility cessa:

a) With the extinction of the foundation;

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b) With the expiry of the status of public utility;

c) By decision of the competent entity for the concession, if it has left itself

check some of the assumptions of this;

d) For the serious or repeated violation of the duties that are legally

taxes.

Section III

Organization

Article 26.

Organs

1-Constitutions compulsory organs of the private foundations:

a) A body of administration, to whom it competes in the management of the heritage of the

foundation, as well as deliberating on proposed amendments to the statutes, of

modification and extinction of the foundation;

b) A directional or executive body, with current management functions;

c) A supervisory body, to whom it competes in the supervision of management and accounts

of the foundation.

2-The foundations may still have a board of founders or of curators, with the

mission to ensure compliance with the foundation's statutes and the respect of the will

of the founder or founders.

3-The mandates of the members of the organs of the foundation may not be victorious, except

those of the posts expressly created by the founder or founders with that nature

in the act of institution.

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Article 27.

Assignment and composition

1-The statutes of the foundation designate the respective bodies, avoiding the overlapping of

competencies, whether these are mandatory or optional.

2-The body of administration consists of an odd number of holders, of which a

will be the president, and he may be part of the executive body.

3-The supervisory body may be constituted by a single supervisor or by a board

tax compriseof an odd number of holders, of which one will be the chairman.

Article 28.

Representation

1-A The representation of the foundation, in judgement and outside it, is up to whom the statutes

determine or, in the lack of statutory provision, to the administration or to whom it

is assigned.

2-A designation of representatives on the part of the administration is only objectiable to third parties

when it proves to be that these knew her.

Article 29.

Obligations and responsibility of the holders of the organs

1-The obligations and responsibility of the holders of the organs of the foundations to with

these are set out in the respective statutes, applying, in the lack of provisions

statutorily, the rules of the mandate with the necessary adaptations.

2-The holders of the organs of the foundation shall not be allowed to exercise the right to vote in the

deliberations taken in meetings in which they are present and are responsible for the

damage from them arising, save if housed in ata to their dissent.

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Article 30.

Civil liability of foundations

The foundations respond civilly by the acts or omissions of their representatives,

agents or mandators on the same terms in which the principals respond by the acts

or omissions of its commissioners.

Section IV

Modification, merger and extinction

Article 31.

Modification of the statutes

The statutes of the foundation can at all time be modified by the entity

competent for the recognition, on a proposal from the respective administration, provided

that there is no essential change from the end of the institution and if it does not contravene the will of the

founder.

Article 32.

Transformation

1-Ouvida the administration, and also the founder, if it is alive, the competent entity for

recognition can broaden the end of the foundation, whenever social profitability

of the available means advises him.

2-A the same entity may still, after the hearings provided for in the preceding paragraph, assign

to the foundation a different end:

a) When it has been entirely filled the end for it has been instituted or this

if it has made it impossible;

b) When the end of the institution cede to rewear social interest;

c) When the heritage becomes insufficient for the realization of the intended end.

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3-The new end should approach, in whatever way possible, of the end fixed by the founder.

4-There is no place for change of purpose, if the act of institution forbids it or prescribes it

extinguishing of the foundation.

Article 33.

Merger

On a proposal from the respective administrations, or in the alternative to the decision referred to in paragraph 2

of the preceding article, and after the hearings provided for in paragraph 1 of the same article, the entity

competent for the recognition can determine the merger of two or more foundations, of

analogous purposes, counting that this does not object to the will of the founder.

Article 34.

Charge detrimental to the purposes of the foundation

1-Extending the heritage of the burdensome foundation with charges whose compliance

impossibile or gravely hinder the filling of the institutional end, may the

competent entity for the recognition, on a proposal from the administration, to suppress,

to reduce or commute these charges, heard the founder, if it is alive.

2-If, however, the charge has been an essential reason of the institution, it may the same entity

consider their fulfillment as an end of the foundation, or incorporate the foundation nother

legal person capable of meeting the burden at the expense of the incorporated heritage, without

prejudice to its own purposes.

3-The foundations can only accept inheritances to the benefit of inventory.

Article 35.

Causes of extinction

1-The foundations extinguish:

a) By the course of the period, if they have been constituted temporarily;

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b) By the verification of any other extinguishing cause provided for in the act of institution;

c) With the closure of the insolvency proceedings, if it is not admissible to

continuity of the foundation.

2-The foundations may be extinguished by the competent entity for the recognition:

a) When its end has been exhausted or if there is become impossible;

b) When the developed activities demonstrate that the real end does not coincide

with the end provided for in the act of institution;

c) When they have not developed any relevant activity in the three years

precedents.

3-The foundations may still be extinguished by court decision, in action brought by the

Prosecutor's Office or by the competent entity for the recognition:

a) When their end is systematically pursued by illicit means or

immorals;

b) When its existence becomes contrary to public order.

Article 36.

Declaration of extinction

When any of the extinctive causes provided for in paragraph 1 of the preceding article occur, the

administration of the foundation communicates the fact to the competent entity for the recognition,

in order to this declare the extinction.

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Article 37.

Effects of extinction

1-A The extinction of the foundation triggers the opening of the process of liquidation of its

heritage, competing with the competent entity for the recognition to take the

providences that judge convenient.

2-In the absence of special arrangements to the contrary, the provisions of Article 184 shall apply.

of the Civil Code.

Article 38.

Requests for modification of statutes, transformation and extinction

1-The applications for the authorization of modification of statutes, transformation and extinction of

private foundations are carried out exclusively through the filling of the

appropriate electronic form and in accordance with the indicated indications of the portal

of the Presidency of the Council of Ministers, at the Internet .

2-The applications for the authorization of modification of statutes and transformation of the foundation

are instructed with the following elements:

a) Copy of the by-laws prevailing on the date;

b) Copy of the internal regulation, if it exists;

c) Copy of the minutes of the meeting in which the proposed modification has been deliberated

of statutes or of the transformation of the foundation;

d) Descriptive memorandum of the reasons that led to the deliberation of tender

of statutory modification or of transformation of the foundation.

3-The application for declaration of extinction is instructed with the following elements:

a) Copy of the by-laws prevailing on the date;

b) Copy of the internal regulation, if it exists;

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c) Copy of the minutes of the meeting in which the proposal for a declaration was deliberated

of extinction of the foundation

d) Supporting documentation of the activity developed by the foundation during the

its existence;

e) Proof of compliance by the foundation of all legal obligations,

particularly tax and contributory, to which such entes are adstry;

f) Descriptive report of the current evolution and heritage situation of the foundation.

4-Final decisions are taken within a maximum of 60 days from the entry of the

requests.

Chapter II

Special regimes

Section I

Foundations of social solidarity

Article 39.

Nature, object and applicable regime

1-The foundations of social solidarity are private foundations and continue,

inter alia, any of the objectives set out in the paragraphs a) , e) , g) , j) , s) , u) , x) , z) and

aa ) of Article 3 (2).

2-The foundations of social solidarity shall apply the provisions of the previous chapter, with the

specificities set out in this section.

3-Applies to the foundations of social solidarity the Status of Institutions Particular of

Social Solidarity (IPSS), approved by the Decree-Law No. 119/83 of February 25,

changed by Decrees-Law No 386/83 of October 15, 9/85, of January 9, 89/85,

of April 1, 402/85, of October 11, and 29/86, of February 19.

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4-The foundations of social solidarity are also subject, depending on the cases, to the

Regulation of Register of Particular Social Solidarity Institutions of the Scope

of Social Security System Social Action and the Regulation of the Register of

Private Institutions of Solidarity from the Scope of the Ministry of Education,

provided for in Article 7 of the Decree-Law No 119/83 of February 25, amended by the

Decrees-Law No 386/83 of October 15, 9/85, January 9, 89/85, April 1,

402/85, of October 11, and 29/86, of February 19, and approved, respectively,

by the Portaria No. 139/2007 of June 29 and by the Portaria No. 860/91 of August 20.

5-On the foundations of social solidarity with main or exclusive purposes of promotion and

health protection is still applicable the provisions of the Portaria No 466/86 of August 25.

Article 40.

Recognition

1-The recognition of the foundations of social solidarity is the competence of the

Prime Minister, with the faculty of delegation.

2-The recognition procedure starts with an application submitted, for that

effect, in the competent departments of the Ministry of Solidarity and Social Security.

3-The application for recognition is instructed with the elements referred to in Article 22.

4-Within 45 days, the relevant departments of the Ministry of Solidarity and

Social Security emit opinion on the request for recognition.

5-In the case of the foundations of social solidarity with main or exclusive purposes of

promotion and protection of health and social solidarity foundations of the scope of the

Ministry of Education, is still issued opinion binding, within 15 days, by the

competent services of the Ministry of Health or the Ministry of Education and of the

Science, depending on the cases, which refer you to the competent departments of the Ministry of

Solidarity and Social Security.

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6-Within 45 days or, dealing with foundations of social solidarity with purposes

main or exclusive of promotion and protection of health or of foundations of

social solidarity of the scope of the Ministry of Education, 60 days from the

presentation of the application for recognition, the competent departments of the Ministry of

Solidarity and Social Security refers to the competent entity for the

recognition of the respective process, accompanied by final opinion.

7-The opinions referred to in the preceding paragraphs are mandatory and binding for the

competent entity for the recognition, constituting its lack of ground of

refusal of recognition.

Article 41.

Monitoring and surveillance

The competent entity for the recognition, the competent departments of the Ministry of

Solidarity and Social Security and the Inspectorate-General of Finance can order the

conduct of surveys, syndications, inspections and audits of the foundations of solidarity

social.

Section II

Foundations of development cooperation

Article 42.

Nature, object and applicable regime

1-The foundations of development cooperation are private foundations and

pursue some of the objectives set out in Law No. 66/98 of October 14.

2-The foundations of development cooperation shall apply to the provisions of the Chapter

previous, with the specificities of this section.

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3-Applies to the foundations of cooperation for development the Statute of the

Non-Governmental Organizations of Development (ONGD), defined by the Law

n. 66/98, of October 14.

Article 43.

Recognition

1-The recognition of the foundations of development cooperation is of the

competence of the Prime Minister, with the faculty of delegation.

2-The recognition procedure starts with an application submitted, for that

effect, in the competent departments of the Ministry of Foreign Affairs.

3-The application for recognition is instructed with the elements referred to in Article 22,

as well as with the following elements:

a) Constitutive act;

b) Statutes;

c) Plan of activities for the current year;

d) Means of financing.

4-The competent services of the Ministry of Foreign Affairs issue opinion

on the application for recognition and refer it along with the process to the entity

competent for the recognition, within 45 days of the date of

presentation of the application for recognition.

5-The opinion referred to in the preceding paragraph shall be binding and binding on the entity

competent for recognition, constituting its lack of foundation of the refusal of the

recognition.

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Article 44.

Monitoring and surveillance

The competent entity for the recognition, the competent departments of the Ministry of

Foreign Affairs and the Inspectorate-General of Finance can order the realization of

surveys, syndications, inspections and audits of the foundations of cooperation for the

development.

Section III

Foundations for the establishment of private higher education institutions

Article 45.

Nature, object and applicable regime

1-The foundations instituted for the establishment of private higher education institutions

are private foundations and pursue some of the objectives set out in Article 2 of the

Law No. 62/2007 of September 10.

2-The foundations for the establishment of private higher education institutions shall apply

the provisions of the previous chapter, with the specificities of this section.

3-Applies to the foundations for the establishment of private higher education institutions o

Legal Regime of Higher Education Institutions, passed by Law No. 62/2007, of

September 10.

Article 46.

Recognition

1-The recognition of foundations for the establishment of higher education institutions

private is within the competence of the Prime Minister, with the faculty of delegation.

2-The recognition procedure starts with an application submitted, for that

effect, in the competent departments of the Ministry of Education and Science.

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3-The application for recognition is instructed with the elements referred to in Article 22.

4-The competent departments of the Ministry of Education and Science emit opinion on

the application for recognition and refer it along with the process to the entity

competent for the recognition, within 180 days of the date of

presentation of the application for recognition.

5-The opinion referred to in the preceding paragraph shall be binding and binding on the entity

competent for recognition, constituting its lack of ground of refusal of the

recognition.

Article 47.

Monitoring and surveillance

The competent entity for the recognition, the competent departments of the Ministry of

Education and Science and the Inspectorate-General of Finance can order the realization of

surveys, syndications, inspections and audits of the foundations for the creation of

private higher education institutions.

Title III

Public foundations

Chapter I

General provisions

Article 48.

Principles

Public foundations, of public law or private law, are subject to:

a) To the constitutional principles of administrative law;

b) To the general principles of administrative activity;

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c) To the regime of impediments and suspicions of the holders of the organs and agents of the

Administration, including the incompatibilities provided for in Articles 78 and 79.

of the Status of Posting;

d) To the rules of public procurement; and

e) To the principles of advertising, competition and non-discrimination in

matter of recruitment of personnel.

Article 49.

Nature and object

1-Public foundations are legal persons of public law, with no profit end,

endowed with organs and own heritage and administrative and financial autonomy.

2-Public foundations may have an end to the promotion of any public interests

of a social, cultural, artistic or other similar nature.

Article 50.

Creation and constitutive act

1-Public foundations can only be created by the State, by the Autonomous Regions or

by the municipalities, either isolated or jointly.

2-State or regional public foundations are instituted by legislative diploma.

3-Municipal public foundations are instituted by deliberation of the Assembly

Municipal, applying, with the necessary adaptations, the willing as to the creation of

municipal-owned enterprises in the legal regime of the local business sector, approved

by Law No. 53-F/2006 of December 29, amended by the Leis n. ºs 67-A/2007, 31 of

December, 64-A/2008, of December 31, and 55/2011, of November 15.

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Article 51.

Statutes

1-The statutes of public foundations are approved in the constitutive act of the foundation and

regulate the following aspects:

a) Name, seat, assignments, object and recipients of the foundation;

b) Initial financial allocation and mode of funding of the foundation;

c) Organs, their competence, organization and functioning;

d) Ministry of tutelage, in the case of the state foundations.

2-Public foundations may not exercise activities outside of their assignments nor

dedicate its resources to the various purposes of those that have been committed to it.

Article 52.

Legal regime

1-Public foundations shall be governed by the standards set out in this Framework Law and

too much legislation applicable to public legal persons, as well as by their respective

statutes and internal regulations.

2-Are, specifically, applicable to public foundations, whatever the

particularities of its statutes and its management regime:

a) The Code of Administrative Procedure, with respect to the activity of

public management, involving the exercise of powers of authority, the management of

public function or the public domain, or the application of other regimes

juric-administratives;

b) The legal regime applicable to employees performing public duties;

c) The regime of the financial and heritage administration of the State;

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d) The scheme of the realization of public expenditure and public procurement;

e) The regime of the incompatibilities of public office;

f) The regime of the civil liability of the State;

g) The laws of administrative litigation, when they are in cause acts and contracts

of an administrative nature;

h) The regime of jurisdiction and financial control of the Court of Auditors and of the

Inspection-General of Finance.

Article 53.

Organs and services

1-State public foundations organise themselves and have services in the terms and

conditions laid down in the framework law of public institutes.

2-The regional and local public foundations apply the provisions of the framework law of the institutes

public, with the necessary adaptations and with the following specificities:

a) The board of directors is the body responsible for the definition, orientation and

execution of the general acting lines of the foundation, as well as the direction of the

respects services, in accordance with the law and with the guidelines of the

regional or local bodies, depending on the cases;

b) The members of the board of directors are assigned by the executive bodies

regional or local, depending on the cases;

c) The dispatching of designation of the members of the board of directors, duly

reasoned, is published, depending on the cases, in the Official Journal of the Region

Autonomous respective or in the Municipal Bulletin respective, together with a

note on the academic and professional curriculum of the nominees;

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d) It is incumbent on the board of directors, within the framework of the foundation's guidance and management,

draw up opinions, studies and information that are requested by the

Regional Government or by the City Hall, depending on the cases;

e) It is incumbent upon the chairman of the board to ensure the relations with the

tutelage organs, the regional bodies, local bodies and too many organisms

public;

f) The single tax officer is appointed, from among official reviewers of accounts or societies

of official auditors of accounts;

g) The mandate of the single supervisor has the duration of five years and is renewable one

only single time.

Article 54.

Economic-financial management

Public foundations become subject to the economic-financial management regime and

heritage provided for in the framework law of public institutes.

Article 55.

Monitoring, performance evaluation and surveillance

1-State public foundations are subject to the powers of oversight and of

tutelage of the instituidora entity, under the terms and conditions laid down in the framework law of the

public institutes.

2-The power of oversight and administrative tutoring in state public foundations

is exercised by the public entity that most contributes to its financing or that

has the right to designate or impeach the largest number of organ holders of

administration or surveillance.

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3-Checking an equal contribution to the funding of a foundation or

an equality as to the greater number of designation or ousting rights, the

powers referred to in the preceding paragraph shall be jointly exercised by the entities

public who find themselves in equal circumstances.

4-A the instituting entity and the Inspectorate-General of Finance can order the realization of

enquiries, syndications, inspections and audits of state public foundations and

regional.

5-A the instituidora entity, the Directorate General of Local Authorities and the Inspectorate-General of

Finance can order the carrying out of surveys, syndications, inspections and audits

to local public foundations.

Article 56.

Restructuring, merger and extinction

1-Public foundations must be extinguished:

a) When the time limit has elapsed by which they have been created;

b) When the purposes for which they have been created have been achieved, or if

has made it impossible to pursue;

c) When you check not to subsist the reasons that dictated your recognition;

d) When the State, the Autonomous Region or the local municipality have to comply

obligations assumed by the organs of the foundation for which the respective

heritage if it proves insufficient.

2-In case of extinction, it is acauteled, where possible, the transfer of the heritage

of the public foundation for public entities that pursue analogous purposes.

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Chapter II

Public foundations of private law

Article 57.

Applicable regime

1-The State, the Autonomous Regions, the local authorities, the other collective persons of the

autonomous administration and the remaining public collective people are barred from creating

or participate in new public foundations of private law.

2-The public foundations of private law already created and recognized shall apply the willing

in the previous chapter, with the specificities of this chapter.

Article 58.

Status of members of the organs of the foundation

1-The holders of the organs of any public legal person who are designated to

exercise in accumulation of management positions in foundations created or sponsored

by the same public entity may not receive any remuneration or supplements

remunerative for the post or accrued office, whatever the title is.

2-It is vetted to the members of the governing bodies:

a) The exercise of any other activities, temporary or permanent,

remunerated or not, in the foundation that they administer or in entities by it

supported or dominated;

b) The celebration, during the exercise of the respective mandates, of any

work contracts or provision of services with the foundation that

administering or with the entities it supported or dominated that hajam from

invigorate after the cessation of their duties.

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3-Members of administration bodies must declare themselves barred from taking part

in deliberations when in them have an interest, per se, as representatives or as

business managers of another person, or yet when such succeeding in relation to their

spouse, united in fact, relative or aend in a straight line or up to the 2 degree online

collateral or in relation to the person with whom they live in common economics.

4-You cannot receive benefits from a public private law foundation the following

companies:

a) Those whose capital is held in a percentage higher than 10% by one or

more members of the foundation boards of the foundation concerned or by their

spouses, united in fact, relatives or related online or even to the 2 degree in

collateral line or in relation to the person with whom they live in a common economy;

b) Those in whose capital a member of the foundation's governing body in

cause or your spouse, united in fact, relative or awe in a straight line or up to the

2. degree in a collateral line or in relation to the person with whom they live in

common economy detains, directly or indirectly, by you or with the relatives

referred to in the preceding paragraph, a percentage of not less than 10%;

c) Those whose capital is held in a percentage higher than 10% by the own

foundation.

5-The members of the governing body shall not be able to perform duties for more than ten

years.

6-The provisions of the preceding paragraphs shall apply, with the necessary adaptations, to the

members of the steering or supervisory bodies.

7-The members of the organs of the foundation shall apply to the scheme defined in this Law-

framework and, secondarily, the constant regime of the framework law of public institutes.

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Article 59.

Sanctionatory regime

1-A violation of the provisions of paragraph 5 of the preceding Article imports the expiry of the mandate

under way, to be declared by the competent entity for recognition.

2-A violation of the provisions of paragraphs 2 a to 4 of the preceding Article shall determine:

a) The nullity of deliberations and too many acts or contracts;

b) The resignation of the member of the organ who is found to be prevented or in a situation of

incompatibility;

c) The inhibition of the member of the organ that is found to be prevented or in a situation of

incompatibility for the exercise of functions in administration bodies, of

direction or oversight in public foundations of private law by a

period of five years.

3-A The dismissability and the inhibition referred to in the preceding paragraph imply the obligation to refund

with interest from mora the importances improperly received and do not give way to any

compensation or compensation.

Article 60.

Advertising

1-Within 30 days, they are communicated to the Presidency of the Council of Ministers and

sent in the same time frame for publication in the Journal of the Republic , owing still to be

published in two daily newspapers of national circulation, or in one of those and in a newspaper

site covering the municipality in which the seat of the foundation is located, the changes to the

statutes, the allocation of end or different purposes, the decisions of merger or extinction, the

modifications or ampliations of the entities granting financial supports and the

changes in the composition of social organs.

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2-The provisions of the preceding paragraph shall apply to the mandatory publication of the report and accounts

annual, accompanied by the opinion of the tax council or official auditor, on the terms

legally required for public limited companies.

Article 61.

Fate of the goods in the event of extinction

1-In case of extinction of public foundation of private law, the remaining heritage

after liquidation reverses to the legal person of public law that has created it or,

having there been several, for all, in the measure of their contribution to the early heritage

of the foundation or the number of members of the governing bodies, directing or

supervision of the foundation that it could designate.

2-If the public private law foundation has private institutors, the part of the

heritage that would correspond to them in the event of extinction follows the provisions of Article 12.