Cap. 16 Art. 29AMandatory rules to prevail.

(1) Subject to the provisions of sub-article (2), in the case of a foundation governed by Maltese law, where the laws of Malta contain provisions with regard to the following matters -

(a) the protection of minors or incapable parties;

(b) the personal and proprietary effects of marriage;

(c) succession rights, whether testate or intestate, especially the indefeasible shares of spouses, ascendants and descendants, hereinafter referred to as "rules of mandatory application" or "mandatory rules" which cannot be derogated from by a voluntary act, such laws shall prevail over the terms of the foundation and related endowments unless otherwise expressly provided in this Schedule or in applicable law. (2)To the extent that there exist rules of mandatory application, the courts shall apply such mandatory rules subject to the provisions of article 29B.

(3)When a foundation is governed by Maltese law and has no connection to Malta by reason of the domicile of the founder at the time of the endowment of the property to the foundation or the situs of the property, when immovable, any rules of mandatory application shall not apply in any manner. In such cases no regard shall be had to:

(a) the domicile, habitual residence, registration, authorisation or place of business in Malta of any protector or any person rendering administration, accounting or other services to the foundation; or

(b) the fact that the proper law of the foundation is Maltese law and the place of registration is Malta; or

(c) the of property in Malta, when movable; or situs

(d) the fact that the place of execution of the deed of foundation, any documents relating to the foundation or relating to the foundation property or other transaction documents is Malta.

(4)In the case of a foreign foundation, the rules of mandatory application shall only apply to any relevant endowment to the foundation when the founder is domiciled in Malta at the time of creation of the foundation or the making of the endowment, subject always to the rules stated in article 29B.

(5)In the case of a foreign foundation, when the founder of such a foundation is not domiciled in Malta at the time of the creation of the foundation or the making of the endowment, the provisions of this Schedule shall apply only in so far as they regulate the continuation or otherwise in Malta of the foundation or the endowment.

(6)To the extent that there exist rules of mandatory application in the law applicable in the circumstances in terms of Maltese private international law, the courts of Malta may apply such mandatory rules subject to the provisions of article 29B.

(7)When a court is requested to recognise a foreign judgement which enforces any rules of mandatory application as referred to in sub-article (6), the court may accede to such request subject to the provisions of article 29B.