• PART 7 PART 7 – Foreign Laws

    • (Foundation Property)

      • 32. Foundation Property

        (1) Subject to sections 32, 33 and 34, Assets transferred to a Foundation or otherwise vested in it shall be the Assets of the Foundation with full legal and beneficial title and such Assets are no longer the property of the Founder or Subsequent Transferor and are not the Assets of any Beneficiary until such time as the Assets are distributed to such Beneficiary in accordance with the Charter or By-laws or these Regulations.
        (2) A transfer or other disposition of property to a Foundation registered under these Regulations shall not be void, voidable or liable to be set aside by reference to a foreign role of forced heirship or any other law of a foreign jurisdiction.
        (3) In this section, “foreign role of forced heirship” means any rule of any jurisdiction other than the Abu Dhabi Global Market which, in order to protect the rights of any Person or class of Persons to inherit, succeed or share in the property of a Founder, Subsequent Transferor or Beneficiary in the event of their death, purports to remove or restrict the Founder, Subsequent Transferor or Beneficiary’s right to transfer, dispose of, encumber or otherwise deal in property belonging to such Founder, Subsequent Transferor or Beneficiary during their lifetime and includes any judicial or administrative order or directive of a jurisdiction other than the Abu Dhabi Global Market seeking to implement or enforce such a role.
        (4) A transfer of property to or the vesting of property in a Foundation, or the making of a distribution to a Beneficiary of a Foundation in accordance with the Charter, By-laws or the provisions of these Regulations, shall not be set aside or rendered void or voidable as a result of -
        (a) a foreign statute that prohibits or does not recognize the concept of a Foundation; or
        (b) a transfer of property to a Foundation or any term of its Charter or By-laws avoids or defeats rights, claims or any interest in property conferred by a foreign statute on any Person by reason of any personal relationship to the Founder or Subsequent Transferor or by way of heirship rights; or
        (c) the transfer of property to the Foundation or any term of its Charter or By-laws contravenes any foreign statute, foreign rule of heirship or foreign judicial or administrative order or action intended to recognise, protect, enforce or give effect to any such rights, claims or interest.
        (5) A judgement of a foreign court shall not be recognised or enforced insofar as it is inconsistent with subsections (3) and (4).

      • 33. Bankruptcy Of A Founder Or Subsequent Transferor

        (1) Subject to subsection (2), a Foundation or a transfer of property to a Foundation shall not be void, voidable or liable to be set aside by reason of a Founder or Subsequent Transferor’s bankruptcy, the liquidation of a Founder or Subsequent Transferor’s property or any action or claims made against a Founder or Subsequent Transferor by any creditor, notwithstanding any foreign statute providing otherwise.
        (2) Notwithstanding subsection (1), where the Court determines that, at the time when the property was transferred to the Foundation, the Founder or Subsequent Transferor, as applicable, was insolvent or intended to defraud any creditor of the Founder or Subsequent Transferor, as applicable, it may declare that the transfer of property was void to the extent of the creditor’s claim.
        (3) In making claims to set aside transfers of property to a Foundation under subsection (2), the burden of proof shall rest with the creditor.

    • Alienation Of Property

      • 34. Restriction On Alienation Of Foundation Property

        (1) No Beneficiary or object of a Foundation shall have any rights in specie against the Assets of the Foundation, notwithstanding any foreign statute or law to the contrary, and, subject to the terms of the Charter or By-laws, any Assets of the Foundation available for distribution to a Beneficiary shall not be –
        (a) capable of being alienated in the bankruptcy, insolvency or liquidation of a Beneficiary; or
        (b) liable to be seized, sold, attached or otherwise taken in execution by process of law.