Chapter 3. Property with a specific destination
Section 1. Endowments
Art. 483.- Definition.
An act of endowment is an act whereby a person destines certain property irrevocably and perpetually to a specific object of general interest other than the securing of profits.
Art. 484.- Forums.
(1) An endowment may be constituted either by a donation or by a will.
(2) Its constitution shall be subject, as regards its form and its substance, to the rules relating to donations or wills.
Art. 485.- Administrative approval necessary.
(1) An endowment shall not be definitively constituted unless it has been approved by the Ministry of Interior.
(2) Before making its decision, the Ministry of Interior may take where appropriate the advice of other ministries which have an interest in the endowment.
Art. 486.- Application for approval.-1. During lifetime of founder.
The approval of the act of endowment may not be sought during the life time of the founder, except by the founder himself of his representative.
Art 487.- 2.After his death.
(1) After the death of the founder, it shall be sought by the person to whom the founder has entrusted such task and who has accepted it.
(2) In default of such person, it shall be sought by those persons who have drawn up the act of endowment or who have been witnesses to it or who hold that act in deposit.
(3) Where the person who are bound to seek the approval of the act fail to do so, the approval of the act of endowment may be sought, three months after the death of its author, by the public prosecutor or by any interested party.
Art. 488.- Revocation of act of endowment.
(1) The author of an act of endowment may revoke it freely so long as he has not obtained the approval of such act by the Ministry of Interior.
(2) The heirs of the founder may only exercise such right of revocation where the endowment has not been approved by the Ministry of Interior within two years from an application having been made to such Ministry with a view to obtaining its approval.
Art. 489.- Retroactivity of approval.
(1) The administrative decision approving the endowment shall have retroactive effect from the day of the application for the approval if such application has been made by the founder.
(2) It shall have retroactive effect from the day of the death of the founder if the approval has been sought after the death of the founder.
(3) Such retroactivity may not, however, be prejudicial to those persons who, in good faith, have acquired rights on the property of the endowment before such endowment has been approved.
Art. 409.- Protection and control of endowment.
(1) The act by which the endowment is approved shall determine the organism which is to be responsible for the protection and control of the endowment.
(2) If no organism is designated for this purpose in that act, the protection and control of the endowment shall be ensured by the office of associations of the province where the endowment has its seat.
Art. 491.- Statues of endowment, 1.- Role.
An endowments shall be governed by statues, in conformity with which it shall be organized and administered.
Art. 492.- 2. Contents.
The statues shall mention in particular the name of the endowment, its object and the place where it has its seat,.
Art. 493.- 3. Drawing up.
(1) The statues of an endowment may be drawn up by the founder.
(2) Failing such, they shall be drawn up by the Ministry of Interior, or by the Organism for protection and control given to the endowment b such Ministry.
Art. 494.- Management.
(1) The endowment shall be managed in conformity with its statues by one or more directors.
(2) The provisions of this Title relating to the directors of associations (Art. 428-435) shall apply tot the direction
Art. 495.- Committee of management.
(1) A committee of management constituted in terms of the statues of the endowment is the supreme organ of the endowment
(2) The organism for the protection and control of the endowment shall be represented on such committee of management.
Art. 496.- Functions of committee of management.
(1) The committee of management shall decided on all the affairs of the endowment which do not fall within the sphere of another organ.
(2) In particular, it shall appoint and dismiss the directors, control their activity and approve their accounts.
Art. 497.- Amendments of statues. 1. Principle.
Amendments of the statues of the endowment, decided upon by the committee of management, shall be of no effect until they have been approved by the organism for the protection and control of the endowment.
Art. 498.- 2. Prohibition By founder.
(1) The author of the act of endowment may, by an explicit provision, prohibit certain amendments of the statues of the endowment.
(2) The person appointed by him or the heirs of the founder may apply to the court to declare that the endowment has lapsed, if the statues are amended against the will of the founder thus expressed.
(3) The right provided in sub-art. (2) may no longer be exercised it three years have elapsed since the date of the amendments of the statues or thirty years since the death of the founder.
Art. 499.- Meetings of committee.
(1) The committee of management shall meet on such dates as are fixed by the statues.
(2) It is convened by the directors in urgent cases whenever the interest of the endowment requires it.
Art. 500.- Decisions of committee.
(1) The decisions of the committee of management shall be taken by an absolute majority.
(2) The organisms for the protection and control of the endowment may apply to the court to declare the annulment of such decisions or to stay their execution.
Art. 501.- Rights and obligations of endowment.
(1) The provisions of this Title relating to the name, residence and capacity of associations shall apply to endowments (Art. 452-457).
(2) An endowment may accept donations or legacies with the authorization of the organism for its protection and control.
Art. 502.- Rights of beneficiaries of endowment.
(1) The persons in whose favour the endowment is constituted may take legal action to enforce their rights against the endowment.
(2) If the persons interested are not sufficiently determined by the statues, the directors of the endowment shall determine them according to their equitable discretion.
Art. 503.- Termination of endowment.. -1. Statues.
The endowment shall terminate in such cases as are determined by the statues.
Art. 504.- 2. Other cases.
The endowment is declared terminated by the court on the application of the organism for its protection and control or the public prosecutor where;
(a) its object has been attained or its has become impossible to be attained;
(b) such object has become illicit or contrary to morality;
(c) the endowment pursues and object which is different to that determined by the statues;
(d) the endowment has become insolvent.
Art. 505.- Amalgamation of several endowments.
(1) The court may on the application of the Ministry of Interior authorize the amalgamation of two or more endowments with a view to coordinating their activities, if such amalgamation is describable in the general interest.
(2) The application tot his effect nay be made to the court by the organism for the protection and control, if such organism is common to the interested endowments.
(3) New statues shall be given to the new endowment which is thus formed.
Art 506.- Liquidation and control.
(1) The provisions of this Title relating to the liquidation of associations shall apply to the liquidation of endowments (Art463.-467)
(2) The provisions of this Title relating to the control of associations shall apply to the control of endowments (Art. 468-482).
(3) The functions exercised by the office of associations shall be exercised by the organism for the protection and control of the endowment where such an organism has been established.
Section 2. Committees
Art. 507.- Need of authorization.
(1) Committees having the object of collecting money or other property in aid of public collections, fairs or activities of the same nature, in favour of a specific philanthropic work or work of general interest, may not exercise their activity unless they have been authorized in that behalf by the Ministry of Interior, where such activity is to be carried out on a national scale, or by the governor of the province concerned, where such activity is to be carried out on a provincial or local scale.
(2) Whosever organizes public collections or solicits donations or funds from the public without having received such authorization, shall be liable to the punishments laid down in the Penal Code.
Art. 508.- organization of Committee.
(1) The decisions granting the authorization shall specify the persons who constitute the committee.
(2) It shall specify the purpose and the seat of the committee and the time within which it has to achieve its purpose.
(3) It shall determine where appropriate the manner in which the action of the committee may be exercised and prescribed such measures as are necessary to control the amount and the use of the monies collected by the committee.
Art. 509.- Donations and subscriptions.
(1) The committee may receive donations and subscriptions.
(2) The president of the committee may take action against subscribers for the purpose of attaining the fulfillment of their promises.
Art. 510.- Liability of members.
(1) The members of a committee shall be personally and jointly and severally liable for its activities and is management.
(2) Any donor or subscriber or the public prosecutor may raise the question of their liability.
Art. 511.- Termination of committee.
A committee shall cease to exist upon the expiry of the prescribed time or when it has achieved its purpose or when it has itself decided to dissolve.
Art. 512.- Dissolution of committee.
A committee may be dissolved by the authority which authorized it to carry out its activities where:
(a) it deviates from its purpose;
(b) the achievement of its purpose has become impossible or it has be come clear in any manner that it has been abandoned.
Art. 513.- Liquidation.- 1. Insufficient property.
(1) Where the property collected by the committee is insufficient to attain the object which the committee proposed to achieve, or where that object comes to appear impossible, such property shall have the destination prescribed by the decision which has authorized the committee.
(2) In default of a provision to that effect, the property shall be placed at the disposal of the administration which shall destine it for some work of charity.
(3) The persons who have given property to the committee may not take it back unless the have expressly reserved the right to do so.
Art. 514.- 2. Balance.
(1) Where the property collected by the committee amounts to more than is necessary for the attainment of the proposed purpose, the balance shall have the destination prescribed by the decision authorizing the committee.
(2) In default of a provision to that effect, it shall be placed at the disposal of the administration which shall destine it for some work of charity.
(3) The persons who have given property to the committee may not take it back.
Art. 515.- Change into an endowment.
(1) Where under the statues the property colleted by the committee is to be destined to a specific lasting object, an endowment shall be constituted for the attainment of such object.
(2) The rules relating to endowments shall apply in such case (Art. 483-506).
Section 3. Trusts
Art. 516.- Definition.
A trust an institution by virtue of which specific property is constituted in an autonomous entity to be administered by a person, the trustee, in accordance with the instructions given the person constituting the trust.
Art. 517.- Form.
(1) A trust may be constituted by a donation “inter vivos” or by a will.
(2) Its constitution shall be subject, as regards the form and substance, to the urles relating to donations or wills.
(3) An express provision in the donation or will is necessary for the constitution of the torts.
Art. 518.- Beneficiary of trust.
A trust may be constituted for the benefit of nay person, action or idea, provide it does not offend public or morals.
Art. 519.- Number of trustees.
(1) The trust may be administered by one or more trustees, but the number of trustees may not exceed four.
(2) Where more than four trustees have been appointed, the first four alone shall exercise such functions.
(3) The other persons designated as trustees shall replace in the order in which they are designated the trustees, where they refuse to exercise their functions, die, or are incapacitated.
Art. 520.- Appointment of trustee.
(1) The trustee may be appointed by the person constituting the trust, or by the person designated by him, or, in default of such person, by the court.
(2) Where the trustee so appointed refuses his office, dies or is incapacitated, a new trustee shall be appointed by the person on whom such power has been conferred by the person constituting the torts, or in default of any such person, by the court.
Art. 521.- Resignation of trustee.
(1) A trustee may resign his office if he has a good reason to do so, or if he has exercised his functions for then years.
(2) He shall remain liable for the administration of the trust until such labiality passes to another trustee appointed either before or after his resignation.
Art. 522.- Dismissal of trustee.
The court may, on the application of the person constituting the trust or of a person designated by him, or of one of the trustees or of a beneficiary of the trust, revoke the appointment of a trustee, if there is a just reason for so doing, and replace such trustee by a new trustee whom it shall appoint.
Art. 523.- Proof of trusteeship.
(1) A trustee may obtain from the court a document showing his capacity and his powers.
(2) Such document shall specify where appropriate the period for which the powers have been granted to him.
Art. 524.- Several trustees.
(1) Where three are several trustees, the decisions relating to the administration of the trust shall be taken, without prejudice to any provision to the contrary, by agreement between them.
(2) In case of disagreement, the opinion of the majority shall prevail
(3) Those who are not in favour of a decision taken by the majority may require that their dissenting opinion be recorded in a minute.
Art. 525.- Administration of trust.
(1) The trustee shall administer the trust like a prudent and cautious businessman.
(2) He shall avoid mixing the property forming the object of the trust with his own property.
Art. 526.- Judicial representation of trust.
(1) The trustee shall represent the trust in judicial proceedings.
(2) He is sued in his capacity as trustee by those person who claim to have an interest on the property constituted in trust.
Art. 527.- Power of trustee.
(1) The powers of the trustee on the property which form the object of the trust are those of an owner.
(2) He may not, however, alienate immovable property except with the authorization of the court, without prejudice to any provision to the contrary in the act of constitution of the trust.
Art. 528.- Directions of person constituting the trust.- 1. Principle.
(1) The trustee shall conform with the express instructions which he has received from the person constituting the trust.
(2) Where the interest of the beneficiary of the trust so requires, the trustee may and shall obtain an authorization from the court to depart from such instructions.
Art. 529.- 2. Sanction
(1). The provisions whereby the act of constitution of a trust limit the powers of the trustee, or regulates the manner in which such powers must be exercised, may not be set up against third parties unless it is proved that such third parties where or should have been aware of such provisions.
(2) They have as their only sanction the liability of the trustee who has infringed them.
(3) The court may relieve in whole or in part the trustee from such labiality where it is of opinion that the trustee has in good faith acted or believed to act in the interest of the trust and that such belief was reasonable.
Art. 530. Replacement of property.
The property acquired by the trustee in substation for property alienated by him or with the income of the property which forms the object of the trust shall replace or form an addition to the latter property.
Art. 531.- No personal benefit.
The trustee may not draw any personal benefit from the trust, apart from the advantages which are expressly granted to him by the act of constitution of the trust.
Art. 532.- Indemnity.
The trustee is entitled to be indemnified for all the expenses and obligations arising out of the administration of the trust.
Art. 533.- Liability of trustee.
The trustee shall be liable for the good management of the trust, in accordance with the provisions relating to agency, to the beneficiaries of the trust and to the persons who are to receive the property at he termination of the trust.
Art. 534.- Rendering of accounts.-1. To whom it is made.
(1) The trustee shall render an account of this administration and of the actual state of the property forming the object of the trust, to the person appointed in the act of constitution of the trust.
(2) In default of such person, he shall render an account to any person who has an interest therein in accordance with the act of constitution of the trust or to the person who replaces him in the office of trustee.
Art. 535.- 2. When.
(1) Unless otherwise prescribed by the act of constitution of the trust, such rendering of accounts shall take place every year during the month determined by the trustee at the beginning of his management.
(2) The court may for good cause authorize an interested party to ask for the accounts at an intermediate time, or authorize the trustee to retard or modify the date fixed for the rendering of the accounts.
Art. 536.- Creditors of trustee.
The creditors of the trustee have no right whatsoever on the property forming the object of the trust.
Art. 537.- Creditors of the trust.
(1) Those persons with whom the trustee has entered into an agreement relating to the property constituted in trust may enforce their right on all the property forming the object of the trust.
(2) The trustee shall not be liable to them unless he has expressly bound himself or in accordance with the provisions of the Titles relating to “Representation” of the Code (Art. 2179-2198)
Art. 538.- Rights of beneficiary. -1. In relation to the trustee.
(1) The beneficiary may claim from the trustee the making over of the profits which, according to the act of constitution of the trust, are to accrue in his favour.
(2) Where his rights are jeopardized, he may apply to the court t dismiss the trustee or to compel him to give appropriate guarantees.
Art. 539.- 2. On the property of the trust.
(1) The beneficiary of the trust has no right to dispose of or to administer the property forming the object of the trust.
(2) In relation to such property, he may only do those acts which preserve his rights, such has the interruption of a prescription.
(3) He may also make publications with a view to informing third parties or certain third parties of the fact that certain property form the object of the trust.
Art. 540.- Creditors of beneficiary.-1. Principle.
(1) The person constituting a trust may declare that he income of the trust shall not be attached in the hands of the trustee by the creditors of the beneficiary of the trust.
(2) Where the income has been declared not liable to attachment it may not even be validly transferred or subjected to obligations b the beneficiary of the trust.
Art. 541.- 2. Power of the court.
The court may, however, on the application of the beneficiary of the trust or of one of his creditors, authorize the attachment or the assignment of the income in the cases provide in Article 540, if such is brought forward is in relation to a criminal offence or to a fraud for which the beneficiary of the trust is responsible.
Art. 542.- Termination of the trust. -1. Normal case.
A trust shall terminate on the expiry of the period fixed by the person constituting the trust.
Art. 543.- 2.Power of the court.
(1) The court may at any time on the application of the beneficiary of the trust, declare the termination of the trust where it thinks fit in the circumstances of the cases.
(2) The trustee shall be heard during the proceedings.
(3) The person constituting the trust may, by an express provision prohibit that this power be made use of.
Art. 544.- Liquidation of the trust.
At the termination of the trust, the property which formed its object, together with the documents which are required to prove the ownership of such property and so justify the administration of the trustee, shall be handed over by the trustee to the persons who are entitled to it in terms of the act of constitution of the trust.
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