23. Property endowment

(1) The initial property of a Foundation is the property endowed upon the Foundation in order that the Foundation may be established.

(2) The initial property may comprise any movable or immovable property, and includes rights and interests, whether present or future and whether vested or contingent, and may be provided by way of gift or for valuable consideration.

(3) Following the endowment of the initial property, further property may be endowed upon the Foundation by any Person if the Charter so permits.

(4) A Founder does not have any interest in a Foundation by virtue only of endowing it with its initial property or further property or otherwise by virtue of being a Founder thereof.

(5) No Person has any interest in a Foundation, or is a Founder of a Foundation, by virtue only of endowing it with further property in accordance with subsection (3).

24. Financial resources

The property of a Foundation shall consist of:

(1) the initial property of the Foundation;

(2) any further property endowed upon the Foundation and accepted by its Council;

(3) any appreciation in the value of the property including any proceeds of investment of any capital held the Foundation; and/or

(4) any other property acquired by its Council in accordance with these Regulations.

25. Qualified Recipients

(1) A Foundation’s By-laws may provide for the distribution of property of the Foundation to Qualified Recipients.

(2) A Qualified Recipient shall be one or more of the following:

• (a) a Person holding an entitlement specified in, or pursuant to, the By-laws to a fixed share of the property and income of the Foundation when the Foundation distributes it;
• (b) a Person holding a Depository Receipt;
• (c) a Person who is a prospective recipient of a fixed, or discretionary, share of the property of the Foundation upon the happening of a future event specified in the By-laws;
• (d) a Person who is nominated pursuant to the By-laws to be a recipient of a fixed, or discretionary, share of the property and income of the Foundation at a time following the establishment of the Foundation;
• (e) a charity; and/or
• (f) a default recipient.

(3) A Qualified Recipient has no right to or interest in the property of the Foundation other than a right to payment of amounts which arises by virtue of the terms of the By-laws or pursuant to the By-laws, or a contract with the Foundation, including a contract in relation to a Depository Receipt.

(4) If:

• (a) a Qualified Recipient becomes entitled to receive an amount from a Foundation in accordance with the Charter or the By-laws; and
• (b) the amount is not provided, the Qualified Recipient, or a Person acting on behalf of the Qualified Recipient, may seek an order of the Court ordering the Foundation to pay the amount.

(5) Except as provided by subsection (6), a Qualified Recipient must seek an order pursuant to subsection (4) within the period of three (3) years from the time when the Qualified Recipient became aware of the entitlement to receive the amount.

(6) If the Qualified Recipient has not attained the age of 18 years when he or she became aware of his or her entitlement to receive the amount, the period referred to in subsection (5) begins to run on the day on which the Qualified Recipient attains that age.

26. Depository Receipts

(1) A Foundation may issue Depository Receipts representing specific rights to payment quantified by reference to specific parts of the property owned by the Foundation or relating to other rights or interests, whether present or future, to which the Foundation is or might be entitled.

(2) Any such Depository Receipts issued by a Foundation may be subscribed for or issued in favour of any natural person or legal entity.

(3) The Foundation retains full ownership of the properties and full entitlement to the rights or interest in any property in respect of which it issued Depository Receipts under subsection (1).

(4) Any payments to holders of Depository Receipts issued pursuant to subsection (1) shall be made in accordance with the terms and conditions set forth in the By-laws, or agreed to by the Foundation in accordance with procedures contained in the By-laws.

(5) In the case of Depository Receipts issued in connection with Shares or other Securities held by the Foundation, the Foundation shall retain any voting rights that may be attached to the Securities it owns, unless the terms and conditions of the Securities concerned expressly provide otherwise.

27. Limitation to the transferability of rights in respect of a Foundation

(1) Unless otherwise provided in the By-laws, the right to receive payments from a Foundation is transferable.

(2) The By-laws may limit the right to transfer a right to payment in one (1) or more of the following cases:

• (a) the transferee is already a holder of Depository Receipts of the same kind, and issued by the same Foundation;
• (b) the transferee is a Founder;
• (c) the transferee is a Qualified Recipient of the Foundation; or
• (d) the transferee is a legal entity or a natural Person acting in the name or on behalf of one (1) of the Persons indicated under subsections (2)(a), (b) or (c).