Control of a foundation in Liechtenstein
The founder has a wide range of efficient instruments at his disposal for administrative supervision and control over the actions of the foundation’s bodies, such as the auditor, protector, Advisory Board, collator, trustee and Supervisory Board.
Expertise
Auditor
In addition to the Board of Trustees, the foundation may also have an auditor. The auditor checks annually whether the foundation’s assets have been managed and utilised as intended.
The auditor cannot sanction complaints or identified irregularities themselves, but must apply to the Vaduz District Court for the necessary orders through the ordinary courts (out-of-court proceedings).
Supervisory Board as a private controlling body of the Liechtenstein family foundation
If the foundation is not subject to foundation supervision, the founder can also set up a Supervisory Board as a private supervisory body in addition to an auditor.
The tasks correspond to those of an auditor.
In practice, the founder appoints named representatives with appropriate expertise to fulfil the supervisory tasks. If the founder is not a beneficiary of the foundation, he can also assume the control function as a Supervisory Board. However, as with the auditor, complaints or irregularities can only be sanctioned by the ordinary courts.
Protector | Advisory Board | Collator | Trustee
The founder can also provide for or define further bodies in the foundation deed, such as a protector, Advisory Board, collator and trustee with the following areas of responsibility: Determining a beneficiary from the group of beneficiaries, determining the time, amount and condition of a distribution, managing the assets, advising and supporting the Board of Trustees, monitoring the administration of the foundation, safeguarding the purpose of the foundation, reserving consent or issuing instructions and safeguarding the interests of the foundation’s stakeholders.
These bodies are not authorised to represent the company.
Legal comparison of Advisory Board in DE, CH, AT
DE: Under German law, the establishment of an Advisory Board is optional.
CH: In Switzerland, the Advisory Board functions are assumed by the auditor. Auditing obligation with exceptions. Exceptions include family foundations.
AT: In Austrian private foundations, the Supervisory Board is generally optional. The mandatory second body is a foundation auditor appointed by the court.
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