A Foundation for Administration Offices (STAK) is a powerful tool for retaining control over a company even after transferring shares. However, establishing and managing a STAK requires a comprehensive understanding of the legal aspects involved. In this blog post, we delve into the significant legal considerations when establishing and managing a STAK.

Statutory Objectives and Structure

When establishing a STAK, defining clear statutory objectives is crucial. This involves determining specific duties and powers of the STAK, as well as its relationship with the involved shareholders. The statutes form the legal basis of the STAK and should be meticulously drafted.

Governance and Oversight

A STAK has a board responsible for its management. Appointing qualified and reliable directors who can adequately represent the interests of involved parties is crucial. Additionally, establishing a Supervisory Board or Advisory Board can provide extra oversight and expertise.

Shareholders' Agreements

A STAK often operates in conjunction with shareholders' agreements. These agreements govern the rights and obligations of shareholders concerning the STAK. They may include aspects such as voting rights, dividend distributions, and potential exit scenarios.

Transfer of Shares

A STAK is involved in the transfer of shares. Clearly defining the legal procedures and conditions for these transfers is essential. Arrangements can be made to ensure the company's continuity.

Tax and Legal Structure

The tax and legal structure of a STAK must be carefully considered. This includes the fiscal treatment of the STAK itself, the economically entitled parties, and any dividend distributions.

Supervision and Compliance

A STAK must comply with legal requirements and regulations, including maintaining accurate records, submitting annual accounts, and meeting any reporting obligations.

Conclusion

Establishing and managing a Foundation for Administration Offices (STAK) involves various legal obligations and considerations. It's crucial to handle these aspects carefully and seek professional legal advice to ensure the correct and effective setup and management of the STAK. A well-thought-out STAK structure can offer significant benefits in terms of control and continuity within a company. Share Council guides you through all these legal steps, alleviating your tasks and concerns. Schedule a call with our CEO to explore how we can assist your company.