The increased accountability of foundations : a natural consequence of statutory regulation

Abstract

The concept of foundations in Malta has by now become widespread, with the number of foundations increasing considerably. A foundation consists in the creation of a fund destined to be used, under the supervision of administrators, for the attainment of a specific purpose. Foundations are entities which have a separate juridical personality from that of the founder and the Board of Administrators. This principle has been considered and developed by our local Courts over the years in a number of judgements. In the judgement Padre Giuseppe Cauchi noe v. Salvatore Cilia et, delivered by the Court of Appeal on the 1 st October 1926, the Court indirectly implied that a foundation is an entity having a separate juridical personality. In fact, in this particular case the Court stated that the administration of the foundation should be conducted as a distinct personality. In a subsequent judgement, Sacerdot Nazzareno Curmi et noe v. L-Illu. u Rev. Mons. Kan. Giuseppe dei Marchesi Depiro noe et , also delivered by the Court of Appeal on the 12 th February 1936, the Court held that Maltese Laws recognizes certain entities as being moral persons having a separate juridical personality. A more direct reference to foundations as being moral persons having a separate juridical personality was made in the judgement Dottor Enrico Cauchi v. Giuseppe Pullicino, delivered by the Court of Appeal on the 30th January 1939