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Foundation disputes and enforcement

When conflict erupts inside the foundation: removal applications, special audit, disputes over resolutions and court enforcement of claims of all parties involved.

A foundation dispute is rarely just about money. It usually concerns influence, transparency and the future direction of the foundation. Positions of founder family, beneficiaries and board are structurally different and often collide over generations.

Our role is to bring clarity to the situation and to bring together facts, procedural rules and the possible options. Often several options are open at the same time: information application, special audit, removal proceedings or civil action.

Typical constellations

The recurring patterns include: information denied by the board, distributions unilaterally cut back, resolutions taken in isolation, deadlocks between board and advisory board and the change in the position of the founder family after generational transitions.

Behind every scenario there are structural and personal levels. Distinguishing between them helps to choose the right instrument.

Removal and special audit

For gross breaches of duty by the board the commercial register court can, on application, remove members. In parallel or independently the special audit under § 31 PSG is available: an independent expert audits specific complexes at the foundation.

Both routes require careful preparation. Superficial applications rarely succeed and can weaken later applications. Documentation and chronology are therefore key.

  • Removal of the board by the commercial register court for gross breach of duty
  • Special audit under § 31 PSG by an independent expert
  • Careful preparation of applications significantly increases the chances of success
  • Documentation and chronology are the backbone of any application

Civil actions and de-escalation

Alongside applications in non-contentious proceedings, ordinary civil actions may be possible, for example for damages against board members or claims for distribution against the foundation.

The best result is often not the court judgment, but a coordinated solution that restores the foundation to its function. Where possible, we look for that path first.

This overview reflects the Austrian legal position under the Private Foundation Act (PSG) and does not replace advice in the individual case. The specific circumstances of your foundation are always decisive.

Frequently asked questions

What clients often ask.

When is a removal application against the board realistic? +
When the board has grossly breached its duties and this can be substantiated with evidence. Bad-mood applications regularly fail. A careful chronology, minutes, letters and expert opinions are almost always necessary.
What does a special audit cost? +
Costs depend on the scope of the audit and the fees of the expert. In principle the applicant bears the cost, but they can be reimbursed if the audit is well-founded. We assess the cost-benefit balance in the specific case.
How long does a foundation dispute usually take? +
Individual proceedings can take weeks to years, depending on complexity. Coordinated packages of applications are often faster than a long single procedure. Purely operational lines of communication can be re-opened within a few weeks.
Should family and foundation be advised by the same lawyers? +
In some phases yes, in acute disputes usually not. A clean separation of interests protects both sides in the long term. We are transparent as soon as roles overlap.
Related topics

This may also be relevant to you.

Formation and foundation deed

Setting up with a clear architecture: foundation deed, supplementary deed, governing bodies and asset endowment drafted so the foundation delivers what the founder intended.

Founder rights, amendment and revocation

Reserved founder rights secure influence: amending the foundation declaration, revoking the foundation and the limits where several founders are involved or rights have lapsed.

Beneficiaries and information rights

Beneficiaries have rights: information about the foundation, inspection of the foundation declaration and remedies when the board blocks or distributions stop.

Conflict in the foundation, a blocked board, information denied?

In foundation law, structure, deadlines and evidence decide. Call us directly or write to us, callback within one business day.

+43 662 6280000 kanzlei@brandauer-rechtsanwaelte.at Book an initial consultation (72 euros)

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BRANDAUER Rechtsanwälte GmbH Giselakai 51 5020 Salzburg