Liechtenstein
| Jurisdiction | United Kingdom |
| Pages | 485-509 |
| Author | Stefan Wenaweser |
28
LIECHTENSTEIN
Stefan Wenaweser
A. Jurisdiction 28.01
International Jurisdiction 28.07
National Jurisdiction 28.08
Special Jurisdictions 28.09
Jurisdiction Based on Assets
(‘Vermögensgerichtsstand’) 28.10
Jurisdiction in Supervisory Court Cases 28.11
Jurisdiction in Contentious Court
Cases against Trustees 28.12
Hague Convention on Recognition
of Judgments 28.13
Hague Convention on Recognition
of Trusts 28.14
Conict of Law Rules 28.15
B. Recognition and Enforcement of
Foreign Judgments and Orders 28.17
C. Reserved Powers 28.24
Protectors 28.27
Statutory Reserved Powers 28.31
Sham 28.34
D. Asset Protection and Insolvency 28.39
Fraudulent Dispositions Legislation 28.39
‘Piercing of the Veil’ 28.44
Co- operation in Insolvency Matters 28.45
E. Removal and Retirement of Trustees
and Protectors 28.49
Court’s Power to Remove 28.49
Voluntary Retirement and Statutory
Powers of Retirement 28.51
Indemnities 28.54
F. Rights to Information 28.56
Condentiality Statutes 28.62
Statutory Provisions in Relation to
Rights to Information 28.63
Provisions in the Deed 28.64
Protector’s Rights to Information 28.65
G. Guidance to Trustees, Protectors,
or Enforcers 28.66
Statutory Provisions 28.66
Administration Actions 28.72
H. Involvement of Charitable Interests 28.75
Charity Legislation 28.75
Position of the Attorney General
(or equivalent) 28.79
I. Alternative Dispute Resolution 28.81
Arbitration 28.81
Mediation 28.86
J. Procedural Issues 28.88
Court Structure 28.89
e Local Bar 28.91
Representation and Capacity 28.92
Appea ls 28.94
Costs 28.96
Security for Costs 28.99
K. Cases of Note 28.103
LES 2009,216 28.103
LES 2010,226 28.104
LES 2017,66 28.105
LES 2018,125 28.106
L. Special Legislation 28.107
Non- charitable Purpose Trusts 28.107
Foundation Legislation 28.108
Private Trust Companies 28.110
Tax Information Exchange Laws 28.111
Local Equivalent to the Variation
of Trusts Act 1958 28.112
Local Equivalent of Section 57 Trustee
Act 1925 28.115
A. Jurisdiction
Liechtenstein is the only continental European country to have adopted and codied the
common law trust. e Liechtenstein trust (‘Treuhänderscha’) was codied in 1926 in the
Law on Persons and Companies1 (‘PGR’) with clear inspiration from the English Trustee Act
1 Art 897– 932 PGR.
28.01
Stefan Wenaweser, Liechtenstein In: International Trust Disputes. Second Edition. Edited by: Steven Kempster,
Morven McMillan, Alison Meek, Oxford University Press (2010). © Oxford University Press.
DOI: 10.1093/oso/9780198832737.003.0028
486 :
1925.2 Some English common law rules have been enacted (eg the equitable rules on tra-
cing (‘Spurfolge’; Art 912 (3)PGR, § 30 TrUG). In 1928 the Law regarding Trust Enterprises
(abbreviated as ‘TrUG’) was passed. is law was modelled on the so- called Massachusetts
Business Trust and inserted in the PGR as Art 932a and consists of 170 paragraphs.3
Identifying the source of Liechtenstein trust law is important because if the law needs to be
interpreted, the court will apply the jurisprudence of the country of origin. erefore, in
relation to Liechtenstein trust law, in practically all cases the trust law of England and other
common law countries will be referred to for interpretation purposes.4
e court’s competence in the context of trusts goes beyond dispute resolution and comprises
also a strong supervisory jurisdiction5 which is generally dealt with in non- contentious pro-
ceedings called ‘Ausserstreitverfahren’ (regulated in the ‘AussStrG’) as opposed to conten-
tious proceedings which follow the rules of the Civil Procedure Law (‘ZPO’). Even though
they are referred to as ‘non- contentious’ proceedings, supervisory proceedings may become
hostile, for example where a beneciary attacks a trustee for breach of duty and applies for
the removal of such a trustee by the court.
In its supervisory jurisdiction the court plays both a consulting and a controlling role. is
has already been observed by Pierre Lepaulle in his work written almost nine decades ago,
where he says, ‘Le trust vit à l’ombre du Palais de Justice qui lui apporte à la fois le conseil et
le contrôle .’ 6
Trust law has played an important role in the jurisprudence of the Liechtenstein Supreme
Court (‘OGH’).7 e OGH has resolved disputes involving duciary relationships or duties
by applying Liechtenstein trust law principles.8 e principles developed by this jurispru-
dence are applied by the Liechtenstein courts to all types of asset planning devices, in par-
ticular foundations and establishments, and not just the trust or the trust enterprise.9
e Liechtenstein courts will take jurisdiction, where international jurisdiction and na-
tional jurisdiction are applicable and where, in addition, the correct procedure is applied
(‘Zulässigkeit des Rechtsweges’).10
2 Beck, Kurzer Bericht zum Personen- und Gesellschasrecht (1925) Vaduz, 50.
3 e law relating to trust enterprises is cited and abbreviated as TrUG, eg § 1 TrUG. Art 910 PGR provides for
the supplementary application of the provisions of the TrUG to trusts.
4 Court decisions in Liechtenstein are mainly published in the Liechtensteinische Entscheidungssammlung
(‘LES’). e Liechtenstein Supreme Court (‘OGH’) in LES 1989,3 (‘as its Anglo- Saxon model’); OGH in
LES 1991,162 (‘on the basis of the Common Law trust’); see also OGH in its unpublished decision of 1 July
1996, Hp 51/ 94– 23, p 15. Furthermore, jurisprudence of the Liechtenstein courts is published on <http://
www.gerichtsentscheidungen.li>. See also: Wenaweser, ‘Zur Rezeptionsfrage der Treuhänderscha und
ihrem Anwendungsbereich nach liechtensteinischem Recht’ (2001) LJZ 1 and Bösch, Die liechtensteinische
Treuhänderscha zwischen Trust und Treuhand (1995) GMG Juris:Vaduz (subsequently referred to as:Bösch,
Treuhänderscha).
5 e OGH is conscious of its important role in relation to trusts:see OGH in LES 1986,87.
6 ‘e trust lives in the shade of the Palace of Justice, which provides both guidance and control’, Pierre Lepaulle,
Traité éorique et Pratique des Trusts en droit interne, en droit scal et en droit international (1932) Rousseau &
Cie:Paris, 207.
7 Jurisprudence of the Liechtenstein courts is published in LES as well as on <http:// www.
gerichtsentscheidungen.li>.
8 LES 1987,114; LES 1988,60; LES 1989,3; LES 1990,105; LES 1991,162; LES 1991,143; LES 1992,45; LES
1993,12; LES 1997,119; LES 2007,479; LES 2008,272; LES 2009,45.
9 LES 2009,45:Business Judgment Rule which is applied to trustees and also applied to directors of a company
limited by shares.
10 If the wrong procedure is applied, this will lead to nullity of the proceedings, for example if a matter is dealt
with in non- contentious proceedings when it should have been dealt with in ordinary contentious proceedings
(see OGH in LES 2009,199).
28.02
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28.04
28.05
28.06
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