The Foundation to be created, will have Spanish nationality.

The domicile of the Foundation is located at L’HOSPITAL DE L’ILLA DEL REI, Puerto de Mahón, s/n, POBox 777, 07700 Mahón.

The Board may instigate a change of domicile by means of the corresponding statutory modification, and must make this known immediately to the Protectorate in the manner provided for in current legislation.

The defense and promotion of L’Illa del Rei, or Illa de l’Hospital.

The promotion and organisation of activities relating to the Island.

In order to achieve the fundational aims, a minimum of 70% of the results of the economic trading carried out and of the income obtained from any other concept, once the relevant costs incurred have been deducted, must be set aside. The remainder must be used to increase foundational appropiation or is be kept in reserve as agreed by the Board.

The Foundation can bring this into effect during the period between the beginning of the financial year in which the profit and income is obtained and the four years following closure of this financial year.

The President´s mandate will be in accordance with what is established in Article 12, and will be designated and promoted by the Asociación "Amics de l’Illa de l’Hospital".

The remaining patrons will carry out their duties for four years, and may be re-elected an indefinite number of times. If they are patrons because of their post, Article 16 will apply.

The appointment of patrons – either to complete the maximum number of members or to cover vacancies which may arise – is the Board’s responsbility, as long as this is proposed by the original founder members and corresponding affiliated members.

The time limit to cover vacancies is two months from the time when the position becomes vacant.

The patrons will start to carry out their duties after having expressly accepted their appointment in a public document, in a private document with the signature legalised by a Notary or by means of an appearance to this effect in the Foundation Registry.

They can also accept the position before the Board on presentation of a certificate drawn up by the Secretary, and with the signature legalised by a Notary.

In any case the acceptance must be formally communicated to the Protectorate and must be registered in the Foundation Registry.

The cessation of the Foundation´s Patrons occurs in the following cases :

Death, or declaration of death, as well as the extinction of the legal entity.

Resignation, which will be communicated by means of the same formalities as those of acceptance.

Incapacity, inhabilitation or incompatability, as established by Law.

Cessation in the position for which reason they were named as members of the Board.

Judicial resolution.

Termination of their period of mandate, if they were appointed for a specific period of time.

Its scope is extended to resolve all incidents which concern the goverment, the representation and the administration of the Foundation, as well as the interpretation and the modification of these Articles of Association.

Independently from the duties which the Board is granted by these Articles of Association and even though it may request specific spoken instructions from the Patronate, the faculties of the Board are :

To carry out management, inspection, supervision and direction of the Foundation´s work.

To interpret the constituent Articles of Association – and develop them in accordance with the necessary supplementary norms, should there be any – and adopt agreements on the modification of the same, as long as it is in the interest of the Foundation and towards achievement of its aims.

To agree to the opening and closing of centres, of offices and of branch offices.

To appoint general or special proxies and grant the necessary powers for them to act, as well as revoking these.

To agree to a plan of action and the annual accounts.

To adopt agreements for the merger, extinction and the liquidation of the Foundation as provided for by Law.

To delegate its faculties in one or more patrons, although it cannot delegate the agreement of a plan of action, the annual accounts, the modification of the Articles of Association, the merger and the liquidation of the Foundation, and those matters which require the authorisation of the Protectorate.

The Board must meet at least twice a year and at all times which may be necessary for the smooth running of the Foundation. The President must give notice of the Board meetings on his own initiative, or when a third of its members so request.

The Secretary must give notice of the meeting in writing, and send notification of this to each Member at least five days before the date of the meeting. He has to use a method which can prove that this notification has been received. When a meeting is convened, the place, the day and the time of the meeting must be stated, as well as the Agenda.

It is not necessary to give notice of a meeting in advance when all patrons are present and unanimously agree to hold a meeting.

The Board is validly constituted when at least half the members plus one are in attendance and requires the presence of the President and the Secretary or, if applicable, those people who may replace them.

The Board’s agreements are to be carried out immediately and must be approved by the absolute majority of the votes of the persons in attendance, with the casting vote of the President.

However, a favourable unanimous vote of the Board’s members is required to make agreements which refer to :

Reform or modification of the Articles of Association.

Appointment of new patrons and positions on the Board ; with the exception of patrons nominated by the founding institutions, who will be appointed by the corresponding bodies of these institutions.

Dismissal of patrons and duties for legal or statutary reasons.

Transfer or charge on the assets forming part of the patrimony.

Merger and extinction of the Foundation.

The Secretary must write up the Minutes of the Board’s meetings, and these must be signed by all members in attendance, and must be approved at the same meeting or at the following one. Once approved, they must be written up in the relevant Minutes Book, and must be signed by the Secretary and the President.

With regard to what is not foreseen in these Articles of Association, this will be governed by the Law 30/1992 of 26^th November, by the legal system of Public Administration and by the common administrative procedure, in that which refers to the functioning of collegiate bodies.

In its procedure the Board must adapt to the rules of current legislation and to the wishes of the founder members shown in these Articles of Association.

The Board must carry out the foundation´s aims and administrate the assets and rights – maintaining full return and profit – which make up the Foundation´s patrimony.

The Board must give sufficient information in respect of its aims and activities of the Foundation so that the beneficiaries and other interested parties may be aware of them.

Amongst other things, the patron´s liabilities are :

To ensure that the Foundation´s aims are fulfilled

To attend meetings to which they have been summoned.

To occupy their position with the required attention and promptness of a legal representative.

To maintain in a good state of preservation and production the assets and the values of the Foundation.

To fulfill by means of their actions what is determined by the current legal dispositions and by these Articles of Association.

The Patrons must respond jointly before the Foundation for damages which may be caused by harmful and unlawful actions or those against the Articles of Association or for actions carried out without due care in accordance with their position.

Those who have voted against the agreement are exempted from responsibility and those who can prove that – without having been involved in adopting them and carrying them out – who were unaware that they had been adopted or, if knowing so, had done everything in their power to avoid the damage or had been expressly opposed to them being carried out.

The Patrons will carry out their duties gratitiously ; under no circumstances may they receive a salary for carrying out their duties.

The Patrons have the right to be reimbursed for duly justifiable expenses incurred whilst carrying out their duties.

To manage the ordinary running of the Foundation.

To prepare in advance the Plan of Action and the Annual Accounts which will be presented to the Executive Committee for their final formulation.

To be head of personnel and manage the staff at the Foundation.

To carry out matters related to the promotion of activities, to draw up programmes, to deal with the media, advertising, public relations, etc.

The Foundation´s Patrimony may consist of all types of assets, rights and obligations subject to economic valuation.

All these must to be in the Foundation´s name and must be shown in their Inventory, in the Foundation Registry and in other relevant registries.

In order to carry out its activities the Foundation is financed by the resources which may arise from the return on its patrimony, and, if applicable, by those coming from aid, grants or donations which it may receive from persons or entities, both public and private. In particular, the Foundation may count on contributions from the Govern de les Illes Balears, the Consell Insular de Menorca, Mahón Town Hall, the entity Amics de l’illa de l’Hospital, and, where appropriate, from other founder members affiliated at a later date.

In the same way, the Foundation may obtain income from its activities as long as this does not involve an unjustified limitation to possible beneficiary persons.

The financial year must coincide with a calendar year.

The Foundation must keep a Day book, a Mandatory Book of Trial Balances and a Balance Sheet, Annual Accounts and any other books necessary for adequately carrying out its activities and monitoring its bookkeeping.

In its economic and financial management the Foundation must be governed by the principles and the general critera determined by current legislation.

In the last three months of each financial year, the Board must draw up a plan of action in which the objectives and activities to be developed in the following year must be shown. At the same time, this must be sent to the Board.

The manager will present to the Executive Committee the annual accounts for their definitive formulation, and these must be approved by the Board within a period of six months from the closing of the financial year.

The annual accounts – which consist of the Balance Sheet, Profit and Loss Account and Annual Report – make up a unit, which must be drawn up clearly and which has to show the true image of the Patrimony, the financial situation and the trading results of the Foundation.

The Annual Report must complete, elaborate and discuss the information contained in the Balance Sheet and the Profit and Loss account, and an Inventory of the elements of patrimony must be included.

At the same time, the foundation´s activities, the changes in its bodies of government, management and representation must be included in the Annual Report, as well as the level of fulfilment of the plan of action. The resources used must also be shown, from where they come and the number of beneficiary persons in respect of each action carried out, and the degree of fulfilment in the application of return and income.

Once the annual accounts have been approved by the Foundation’s Board, these have to be presented to the Protectrate within ten working days from the date of approval in order to be examined and then deposited in the Registry of Foundations.

Should the Foundation err in the established legal requisites, the afore mentioned documents must be submitted to an external audit, and a report on this must be sent to the Protectorate together with the annual accounts.

By agreement of the Board, the Articles of Association may be modified as long as this is in the interest of the Foundation. The modification must be done when the circumstances which were dominant when the Foundation was established have changed in a way that it cannot function in a satisfactory manner in accordance with the current Articles of Association.

To adopt the agreement of statutory modification, it will be necessary for a majority of two thirds and the unanimity of the founder members and the affiliated founder members.

The modification or the new writing-up of the Articles of Association agreed by the Board must be communicated to the Protectorate before signing the Public Deed ; afterwards it must be registered in the Registry of Foundations.

The Board can decide to merge the Foundation with another one, on previous agreement with the latter to this effect.

The merger agreement must be approved by a majority of two thirds and the unanimous agreement of the founder members and the affiliated members, and has to be communicated to the Protectorate before signing the public deed : afterwards it must be registered in the Registry of Foundations.