Liechtenstein Companies in International Private Law

January 2015 (completed) Internal Project

Project Description

The research project deals with the question as to the legal assessment of Liechtenstein companies, and in addition the legal forms of the foundation and the trust, under civil law abroad. For Liechtenstein, a country with more resident legal persons than individuals, this question is of far-reaching importance and national interest. The case law of various national courts in Europe illustrates that the Liechtenstein private foundation in particular has drawn suspicion in recent years. There is the general suspicion that it facilitates the wrongful transfer of assets, leading to courts stripping the foundation of its legal capacity. In order to do so, the substantive public policy objection has served as a fallback, which enables the core of the respective domestic legal systems to take priority over the harmonisation of European company law.
With a view to Liechtenstein as a financial centre in the coming decades, the reputation of Liechtenstein companies and the associated political acceptance abroad is imperative. The recognition of each legal form is important, because it has an impact on the other legal forms. Against this background, the recognition of the charitable foundation without the recognition of the private-benefit foundation abroad is unconceivable. New Liechtenstein companies will only be established if they are recognised under civil law abroad.
The aim of the present research project, undertaken in partnership with Liechtenstein associations, organisations and institutions, is to take action against these developments abroad and to strengthen the reputation of Liechtenstein companies and foundations, so that Liechtenstein can also continue to successfully position itself as a financial centre.

Relevance to Liechtenstein

The research project deals with the question as to the legal assessment of Liechtenstein companies, and in addition the legal forms of the foundation and the trust, under civil law abroad. The aim is to act in co-operation with Liechtenstein associations, organisations and institutions against the non-recognition of Liechtenstein companies abroad which has wrongly taken place in the past and to strengthen the reputation of Liechtenstein legal forms.