In 2017 the Cayman Islands Government enacted legislation for the formation and registration of foundation companies. Unlike the traditional company, a foundation company may have no shareholders and may entrench its objectives.
Other key elements of a foundation company is that whomever the founder wants can be given rights, powers and duties (not just to existing members, directors or supervisors).
A foundation company may also entrench the objectives of the company or specific provisions within the constitution and may have by-laws to govern the exercise of discretion by those who have duties or powers under the constitution. The by-laws do not have to be filed and they do not affect a third party dealing in good faith with the foundation company. Being free of the perceived drawbacks of a company or trust, the foundation company provides an attractive alternative in a range of wealth planning, philanthropic, private and commercial scenarios.