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FOUNDATIONS AND FOUNDATIONS AND CORPORATIONSCORPORATIONS

By Julio C. Espinosa-Brown, By Julio C. Espinosa-Brown, Esq.Esq.

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• Private Interest Foundations are regulated in Panama by Law 25 of June 12, 1995.

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PROTECTION OF ASSETS.• A Private Interest Foundation is designed for

the protection of assets.

• For legal effects, the Foundation's net worth constitutes a separate patrimony from the assets of its founder and that of its beneficiaries, their sequestration, embargo or any other action.

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• A Private Interest Foundation, national or offshore, is exempted from all taxes, contributions, fees or duties almost in the same manner as a Trust.

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• The purpose of this Law is to adopt a custody regime for bearer share certificates.

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• Authorized local custodians. Banks with a general banking license and trusts established in the Republic of Panama and regulated by the Superintendency of Banks of Panama, as well as brokerage houses and securities firms established in the Republic of Panama and regulated by the Superintendency of the Securities Market of Panama.

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• Transition period for bearer share certificates issued prior to the entry into force of this Law. With regards to the bearer share certificates issued prior to the entry into force of this Law, a term of three years is granted, after its effective date, for their placement in custody.

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• Failure to comply with the placement under custody of the bearer share certificates issued prior to the entry into force of this Law. The owner of bearer shares whose certificates have not been delivered for custody after the transition period referred to in Article 24 shall be prevented, with respect to the issuing corporation, from exercising the political and economic rights inherent in them under the law, without prejudice to the legal actions that the interested parties may in good faith take to obtain compensation for damages incurred.

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• Answer: CALL ME…

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