386 / 522
Managers of the foundation present the internal auditing reports
that are prepared at least once a year, and these reports are provided to
the General Directorate of Foundations within two months as of the
date of the report. The audit assessment the compliance of the founda-
tion with its purpose and legislation, along with the audit assessment
the compliance of the foundation’s commercial enterprises with legis-
lation is performed by the General Directorate of Foundations.
Termination of Foundations
Where the decision-making body of the foundation or the General
Directorate of Foundations concluded that the purposes of the founda-
tion were impossible to be fulfilled, they may always request registra-
tion of such situation from the civil court of first instance by a petition.
The Court may render a decision regarding the dissolution of the
foundation and establishment of a board of liquidators and register the
decision of dissolution, if necessary. The termination of the foundation
shall be registered into the central registry and announced in the
Official Gazette by the General Directorate of Foundations.
The remaining assets and rights of the new foundation shall be
transferred to a foundation or an institution with similar purposes that
are set out in its deed. If there are no specific provisions in the deed
regarding the said matter, the assets and rights of the foundation shall
be transferred to a foundation with similar purposes that will be deter-
mined by the court, provided that the opinion of the General
Directorate of Foundations and the transferee foundation is taken.
Conclusion
The establishment, management, purposes and activities and ter-
mination of foundations are subject to legislation regarding founda-
tions and notably the Civil Law. The establishment and termination
procedures of foundations require an attentive and careful assessment
due to the fact that such procedures necessitate an opinion of General
Directorate of Foundations and a court decision.
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NEWSLETTER 2015