What is Family Foundation?
A family foundation is an independent legal entity, usually established by the founder to hold assets with the objective of not only preserving the business and family wealth but also the growth and distribution of the family wealth generated by it to the family members. It looks like a company and works like a trust. It is set up in Labuan and is governed under the Labuan Foundation Act 2010.
Just like a company, a foundation can have perpetual existence. It also has a set of legally binding documents known as the Charter and Articles which sets out the parameters within which it is to be managed and governed.
The founder is the person who sets up the foundation. The founder can be more than one founder and the law does not state a maximum. He may appoint any trusted persons such as family members including himself to be the key management of the foundation.To achieve the long term health and viability of the business controlled by the family preventing a sale of the business. The founder has rights and powers to appoint, dismiss and reappoint any Council Members, Officers, Secretary and the beneficiaries named in the Foundation at any time as the founder deems fit.