It is important to explain that a Panamanian Private foundation, according the law, cannot be simply profit oriented or be used to carry on a particular business. Although the Private Foundations shall be used more as a holding company, it can sporadically perform certain acts of commerce when such acts are convenient or advantageous to the Foundation and only if the proceeds of such acts are dedicated exclusively to the non-commercial purpose or objectives of the Foundation. Therefore, the purpose of a Private Foundation shall be along the following lines: To contribute to the costs of upbringing, education, aid, as well as general maintenance or other similar aims of one or more members of one or several families as established in the Regulations. In addition to the members of one or several families, the foundation may benefit other natural or juridical persons including institutions of any kind and it may take the necessary provisions for the orderly disposition or succession of its patrimony. To achieve its object the foundation is authorized to preserve, administer, and invest in an appropriate manner the foundation's assets, being these assets of any kind, particularly of real estate and participations in other entities, and to conclude all businesses and legal transactions serving the pursuit and the realization of such objects. | 
