Court ruled:

Founder’s rights restricted for Benko’s mother

(Bild: AFP/Alex Halada)

Ingeborg Benko, mother of Tyrolean investor René, may no longer exercise her founder rights as before. This was decided by the Innsbruck Regional Court on Wednesday. Ingeborg Benko had set up two private foundations.

It is assumed that the mother was only a "front" for the two private foundations, while the former multiple billionaire René Benko was in fact the "economic founder", who always retained control and always had the say in the background via a so-called - permissible, as was emphasized - "reservation of amendment".

As a result of the current decision, Benko's mother is no longer allowed to make any changes to the foundation declarations or the two foundation statutes, explained lawyer Daniel Tamerl from the Innsbruck law firm CHG, to which trustee Andreas Grabenweger also belongs and which had brought the civil action on his behalf, to journalists in Innsbruck on Wednesday.

The court's decision means that Ingeborg Benko may no longer make any changes to the foundation declarations or the two foundation statutes if she does so in "consultation with third parties". The Laura Private Foundation in Innsbruck and the Ingbe Foundation in Vaduz, Liechtenstein, are affected, said lawyer Daniel Tamerl from the Innsbruck law firm CHG.

From the left: Lawyers Dietmar Czernich, Daniel Tamerl and Benko insolvency administrator Andreas Grabenweger

(Bild: Birbaumer Christof)

Villas and gold in foundations
Assets worth hundreds of millions are said to be parked in the Laura Foundation alone, named after Benko's daughter, and six villas on Lake Garda and gold with a high value in the Ingbe Foundation. The purpose of the foundations is said to be to provide for relatives. René Benko himself is not officially listed as a beneficiary, but according to the lawyers, he is via his mother.

No direct access for liquidator
"Our claim is that Benko is authorized to issue instructions to his mother. His mother has to do this on the basis of an internal agreement. There is no need for a written agreement, it could have been made verbally. For us, however, the right to issue instructions has been transferred to the liquidator," explained Dietmar Czernich, founder of the law firm. The latter has not yet been legally decided.

The interim injunction for the mother is effective immediately. This does not automatically transfer the founder's rights to the insolvency administrator, who has no direct access. There is still a process that will "probably take three or four years", said insolvency administrator Andreas Grabenweger.

Where are Benko's assets?
"Where are Benko's assets?" asked the trustee in bankruptcy himself and answered: "The truth is, nobody knows." It is "quite possible that he has no cash assets." It is also possible that there may be "something in off-shore accounts." However, the "Benko principle" had apparently always been: "He had a good time as the sole beneficial owner." Grabenweger said that "neither the famous villa nor the private jet ever belonged to him", but that there was always a foundation or company behind it as the beneficial owner. The bankruptcy proceedings and the search for Benko's assets are "very complex and time-consuming", not least for this reason, even if the investor's side is cooperating "well".

As many people would ask why Benko, as a "bankrupt", could in principle live the same life "in splendor" as before, the following answer could be given, according to lawyer Czernich: this is because the "assets he needs for his personal lifestyle are essentially parked in private foundations."

Bankruptcy proceedings against the Tyrolean's assets were opened at the end of April. 30 creditors claimed around two billion euros, of which only 47.3 million were initially recognized.