Instrumental trusts | Membership of a board of directors as a shareholders’ trustee

As part of diamond mining activity in the Democratic Republic of Congo (see professional teams chapter), it was learned that after the owner of the project had sought advice, the structure that had been constructed before it was advised precluded the execution of the project, inter alia due to problems of staffing key functions. Because the owner was characterized as a group from Moscow, there was concern that the staffing of key positions would pose difficulties, particularly in the face of various regulators.

Accordingly, it was agreed to form an instrumental trust, i.e., a situation in which key people were from South Africa, Switzerland and Israel. needless to say, the said trust was formed so that the stakeholders would not face any business risk.