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In many cases, you can arrange the dissolution of a foundation yourself. The board adopts a dissolution resolution in accordance with the articles of association, after which the assets are settled (liquidation). If the foundation no longer has any assets, the faster turbo liquidation can be used.
Reasons to dissolve a foundation
There can be various reasons for dissolving a foundation: the goals prove unattainable, there are financial problems, or the foundation has lost its function. Whatever the reason, the dissolution must proceed carefully and in accordance with the rules.
Regular liquidation
In the case of a regular dissolution, the board adopts a dissolution resolution, in compliance with the provisions of the articles of association. This is followed by liquidation: assets are converted into cash, debts are paid, and any surplus is allocated according to the provisions of the articles of association. Only when all matters have been settled does the foundation cease to exist.
Turbo liquidation
If the foundation has no assets left at the time of dissolution, turbo liquidation can be used: an accelerated procedure in which the foundation ceases to exist immediately after the dissolution decision, without liquidation. Please note: accountability and transparency requirements apply to turbo liquidation, including towards creditors. Therefore, only use it if there are truly no assets.
Don't forget the formalities
After the dissolution, you deregister the foundation with the Chamber of Commerce and finalize the administrative and tax matters. Ensure that creditors are not disadvantaged; otherwise, the board risks liability. In case of doubt or debts, it is advisable to seek advice.
Frequently Asked Questions
Can I dissolve a foundation myself?
In many cases, yes: the board adopts a resolution to dissolve the company in accordance with the articles of association, followed by liquidation or, without assets, accelerated liquidation.
When am I allowed to use turbo liquidation?
If the foundation has no assets left upon dissolution. However, accountability and transparency requirements towards creditors do apply.
What happens to a positive balance?
It will be used for the purpose prescribed by the articles of association, often a purpose that aligns with that of the foundation.
Need help dissolving your foundation?
Our legal experts carefully guide the dissolution and liquidation. View our corporate lawteam, our legal assistance, or schedule a free consultation.
