'foundation') is a Dutch legal entity with limited liability, not aiming to make profit, with no members or share capital, that exists for a specific purpose that is serving a public, social or an idealistic interest.
Its use has been pioneered successfully in recent years as a 'poison pill' style defence tactic in hostile takeover situations by Scott V Simpson, one of Europe's leading mergers and acquisitions lawyers.
This act is usually a notarised deed, but can also be established by a Dutch will ('uiterste wilsbeschikking'), and must contain the articles of the foundation which must include the first appointed board.
The rules for foundations are defined in the Dutch Civil Code (Burgerlijk Wetboek), Boek 2, Titel 6 (artt.
Stichtingen (Dutch plural form) are used as a type of poison pill (takeover defense mechanism) for publicly traded companies.
In one case, the Libyan-based oil company Oilinvest used a stichting structure to avoid sanctions on Libya and ensure its continued operation following the overthrow of Muammar Gaddafi; in another case, the Russian oil company Yukos used a stichting structure in an attempt to shield its assets from tax claims by the Russian government.