Interpretation

(1) In this Act, unless the context otherwise requires“auditor” means a person who– (a) is qualified as an accountant by examination conducted by– (i) any of the institutes of Chartered Accountants or Certified Accountants in England and Wales, Ireland or Scotland: (ii) the Canadian Institute of Chartered Accountants, or (iii) the American Institute of Certified Public Accountants, and is a practising member in good standing with any of those institutes; or 10 (b) is approved by any supervisory body of the accounting profession recognised under the laws of Belize; “beneficiary” of a foundation means a person– (a) who is identifiable by name or is ascertainable by reference to– (i) a class, or (ii) a relationship to a person, whether or not living or in existence at the time of the registration of the foundation or at the time which, under the terms of the foundation charter, is the time by reference to which members of a class are to be determined; and (b) who is entitled to benefit under the foundation charter or by-laws or in whose favour a power to distribute any part of the foundation endowment may be exercised; “by-laws” means the rules, regulations or administrative provisions adopted by a foundation council in accordance with the provisions of section 3; “civil proceedings” means any claims, actions, suits, proceedings brought before a court of competent jurisdiction in Belize or elsewhere not being or including a proceeding in pursuance of or in connection with a fiscal offence or a serious crime; CAP. 272. “Commission” means the International Financial Services Commission established under section 3 of the International Financial Services Commission Act; “Court” means the Supreme Court of Belize; International Foundations [CAP. 24:02 11 “creditor” means a person who has obtained a judgment for specified monetary damages issued by the Court, or an assignee of said judgment; “disposition” of property includes every form of conveyance, transfer, assignment, sale, gift, encumbrance or other transaction by which any legal or equitable interest or right in the property is voluntarily created, transferred or extinguished; “dollar” or “$” means dollar in the currency of the United States of America, unless otherwise specifically stated in this Act; “endowment” means the property of a foundation; “familial relationship” means a relationship by blood or marriage recognised by the laws of Belize, and in particular, a relationship in which– (a) one person is the adopted, legitimate or illegitimate child, direct lineal descendant or direct ancestor of the other person; or (b) one person is married to the other person; “fiscal offence” means a crime or violation of existing tax, finance, securities, money laundering, accounting, currency, foreign exchange control or corporate laws, rules or regulations of Belize or elsewhere for which the maximum prescribed penalty is imprisonment for a period exceeding two years; “foreign” means a location or jurisdiction other than Belize; “foreign foundation” means a foundation which is established in or is otherwise governed by the laws of a jurisdiction other than Belize; “foreign law” means the laws, rules, regulations and judicial precedents recognised in a location or jurisdiction other than 12 “foundation” means a foundation established under this Act or continued into Belize under the Act; “functions” includes rights, obligations and duties set forth in this Act or in the terms of the foundation charter; “governing law” means the law specified in the foundation charter or, if no law is specified, the law of the jurisdiction in which the rights of all parties and the terms of the foundation arc construed and regulated; “heirship rights” means any interest or right in, against, or to property as a result of a person’s death, other than an interest or right created by testamentary disposition or other specific voluntary disposition by the person; “incompetent” means a person in respect of whom a custodian or curator has been appointed by any court having jurisdiction, whether in Belize or elsewhere, in matters concerning mental disorder; “insolvency” means the filing of a petition in bankruptcy or otherwise for winding up in a court having jurisdiction over the debtor; “inspector” means an inspector appointed by an order made under section 115; “interest” in relation to a beneficiary means the beneficiary’s interest in a foundation or its property; “international foundation” means a foundation where– (a) the founder or any person who has contributed assets to the foundation otherwise than for full consideration is not resident in Belize; (b) none of the beneficiaries of the foundation is resident in Belize; and International Foundations [CAP. 24:02 13 (c) the foundation endowment does not include any land situated in Belize or the shares of any company beneficially owning any land situated in Belize other than property– (i) for use as an office for the purpose of the administration of the foundation, or (ii) where books and records of the foundation are prepared or maintained; “judgment” means an enforceable judgment issued by the Court; “legal entity” means a natural person, a foundation, company, corporation, body corporate, limited partnership, limited liability partnership, limited liability company or any other juridical person; “member” means a member of the foundation council; “Minister” means the Minister responsible for international financial services; “minor” means a person who has not attained the age of eighteen years; “non-resident” means a person who is not a resident; “official seal” means an official seal prepared pursuant to section 109; “person” means any natural person or a legal person; “personal representative” means the executor or administrator of the estate of a deceased natural person or any person appointed in writing by another person, by a court or by a government to act on behalf of the other person; 14 “principal place of business” means the location where a substantial portion of a company’s or other entity’s administrative and managerial activities are conducted; “profit” includes gain or advantage; “property” means real, personal, movable, immovable, tangible, intangible or intellectual assets of any description, wheresoever situated, including future interests and partial interests; “protector”, with respect to a foundation, means a person or entity who– (a) is not a member; (b) holds a power to appoint or remove a member or to approve or disapprove of a foundation council’s actions, decisions or transactions; and (c) to the extent set forth in the terms of the foundation charter, may direct the foundation council in matters relating to the foundation; “provisions of this Act” includes the provision of any regulations or orders made under this Act; “Register” means the Register of International Foundations maintained by the Registrar; CAP. 272. “registered agent” means a person authorised to conduct business as trust agent and to provide trustee services or to otherwise act as registered agent for international foundations under the provisions of the International Financial Services Commission Act; “registered office” means the office of the registered agent of the foundation, to which the service of all documents upon the foundation is to be addressed; International Foundations [CAP. 24:02 15 “Registrar” means the Registrar of International Foundations appointed pursuant to section 108; “regulated person” means a person holding a relevant licence; “relatives” means current spouse, direct lineal descendants, whether adopted, legitimate or illegitimate, ancestors and siblings; “relevant licence” means a licence issued under the International Financial Services Commission (Licensing) Regulations for the conduct of business as trust agent and to provide trustee services or otherwise to act as registered agent for international “relevant person”, in relation to a foundation, means– (a) the registered agent of the foundation; (b) a former registered agent of the foundation; (c) the Secretary of the foundation; or (d) a member who is resident in Belize and is a regulated person; CAP. 104. “reporting entity” means a body designated as a reporting entity under and in pursuance of the Money Laundering and Terrorism (Prevention) Act; “resident” means resident for the purposes of the Income and Business Tax Act and the Exchange Control Regulations Act; CAP. 55. CAP. 52. “residuary assets”, in relation to a foundation, means the assets of the foundation remaining after its dissolution; “resolution” means a formal decision adopted by the foundation council and memorialized in written form authorising a particular act or transaction; 16 “Secretary” means the person appointed to be the secretary of a foundation pursuant to section 73; CAP. 104. “serious crime” means a criminal offence designated as serious crime under and in pursuance of the Money Laundering and Terrorism (Prevention) Act; “terms of the foundation” means the provisions of a foundation charter or equivalent enabling document which provide for the establishment of that foundation, upon proper execution and registration under this Act. (2) For purposes of this Act, the active conduct of business shall be defined as the manufacture of any product or the provision of any goods or services within Belize for sale within (3) All references to a foundation in this Act are references to an “international foundation” as defined in this section.