ESTABLISHING ACT STATUTE OF THE “BISTRA AND GALINA” FOUNDATION

Chapter One – Statute
Art.1 /1/ The “Bistra and Galina” foundation was established in accordance with art.419 and following of the Law for Persons and Family and is entitled with the quality of a legal entity at its registering in the respective register in the Court of Justice.

Chapter Two – Name, residence and term
Art.2 /1/ The name of the foundation is “Bistra and Galina”
2 /2/ The residence is in Rousse, ¹8 “Khan Asparuh” Street
2 /3/ The name of the foundation, its residence and address are placed on all documents and issues of the foundation and can be written in Cyrillic or in Latin alphabet.
2 /4/ The foundation is not limited in terms of time

Chapter Three – Objectives
Art.3. The foundation holds as its GENERAL OBJECTIVE the providing of circumstances for the formation of spiritually developed cultural personalities, encouraging the creativeness and constructiveness in people, cooperation for the further development of the spiritual and cultural communication among people
Art.4. The SPECIFIC OBJECTIVES of the foundation are:
4 /1/ To promote the education, professional training and creative development of talented and poor people and gifted young people from Rousse.
4 /2/ To improve the living conditions and education possibilities of children – natural and social orphans.
4 /3/ To promote and work for the protection of the cultural heritage of Rousse.
Art.5. In accordance with its objectives the foundation:
5 /1/ Organizes and finances the development and realization of projects, contributing to the realization of its objectives, independently or together with other government and NGO institutions.
5 /2/ Cooperates with local, national and international organizations with similar aims and objectives.
5 /3/ Organizes symposia, conferences, exhibitions, concerts, competitions, makes films to register the campaigns held and the realized projects.
Art.6. In accordance with its aims the foundation fulfills the following basic programs: educational, cultural, civil, ecological, exchange and professional education, grants, sponsoring, publishing, charity.

Chapter Four – Property
Art.7. For the realization of its objectives the foundation utilizes the property accumulated through:
7 /1/ Primary donation from the Founder at the establishment of the Foundation measuring 2000 levs/new/, (2 000 000levs /old/) and $1000 /a thousand/.
7 /2/ Income from the operation of the “Bistra and Galina” Hotel – Rousse, 38”Khan Asparuh” street, property of the Founder – monthly or yearly, according to the decision of the Founder.
7 /3/ Donated or bequeathed by Bulgarian or foreign physical persons or legal entities and other organizations, benevolently supporting the objectives of the foundation.
7 /4/ Income from the property of the foundation, which do not originate from performing business or illegal activities.
7 /5/ Charity campaigns and projects developed and raised by the foundation.
Art.8. The property of the foundation consists of immovable property, laws of estate on it, movable property, money, copyright on objects of intellectual property, securities and other property rights.
Art.9. The foundation can refuse to accept a donation or bequeathal made with unacceptable for it conditions or contradicting to its objectives and the regulations of its Establishing Act.
Art.10. The foundation can set up funds with a particular purpose related to the realization of its objectives, establish and participate in other non-business organizations and business associations. The profit from its participation in the latter is considered property of the foundation.
Art.11. The income from the managing of the foundation, financial sources or other property are to be used in accordance with its objectives, the wish of the donor, the current statute and the decisions taken by the Managing Board, approved by the President. Any money allowance will be conformed to the wish of the donor, when they accompany the donation.

Chapter Five – management and representative body
Art.12. The foundation is managed by a President and a Managing Board.
Art.13. President of the foundation is its Founder
Art.14 /1/ the Managing Board (MB) consists of 7 members. The President of the foundation is rightfully the chairman of the Managing Board.
The position of Executive Director of the foundation is introduced.
The Executive Director is member of the MB. He/she must attend all the meetings of the MB. The executive director does not get any remuneration or is paid a sum appointed by the President.
14 /2/ The president elects the other 6 members of the MB.
14 /3/ The dismissal of a member of the MB can be done at his/her will or by the decision of the President
14 /4/ MB is elected for a period of 3 years
14 /5/ To realize the administrative service of the foundation the position of Coordinator is set up, appointed by the President and remunerated with the respective sum, determined by the President
Art.15. The Managing Board has the following rights:
15 /1/ Manages the foundation, develops and realizes its programs in accordance with the current statute and Bulgarian legislation
15 /2/ Determines the ways of outside control over the sums spent by the foundation
15 /3/ Approves of and ratifies the reports from the control of the Foundation’s funds
15 /4/ Develops the financial strategy of the foundation
15 /5/ Establishes the necessity for outer financial sources
15 /6/ Develops projects and programs for raising funds, in which formulates the basic reason for seeking outer support
15 /7/ Defines the basic strategies and methods for funds raising
15 /8/ motivates and trains the employees for their participation in the process of funds raising
15 /9/ bears the responsibility and control the whole process of funds raising
15/10/ Gives a medial and final evaluation of the results from the funds raising activities.
15 /11/ Makes decisions about the creation of control organs and assistant organs, stating their size, number, kind and contents
Art.16. The president of the foundation has the following rights:
16 /1/ Elects and dismisses members of the MB
16 /2/ Makes decisions about the changing and complementing of the Statute of the foundation
16 /3/ Approves of and ratifies the annual budget of the foundation
16 /4/ Makes decisions about the spending of funds of the foundation on a motivated offer by the MB in accordance with the objectives of the foundation
Art.17. The president appoints three substitutes (Triumvirate) who simultaneously perform the functions of a president in case the president gives up these functions or at eventual death
17 /1/ Two of the substitutes must be members of the Bardarovs family, the third – an outsider.
17 /2/ The three substitutes appointed must make all their decisions unanimously. They have no right to make a decision for the termination of the foundation
17 /3/ A member of the Triumvirate can quit it by the decision of the president, and after his retirement as a manager of the foundation – voluntarily for each member as he/she must appoint a substitute for him/herself.
17 /4/ At retirement for objective reasons of the members of the Bardarovs family or in case of an unexpected situation (death, disease leading to unconscious behavior) when a member of the Triumvirate hasn’t appointed or wasn’t able to appoint his/her substitute in advance, anew member is elected by the other two members unanimously. Their decision becomes operative after being approved by the MB with a full majority
Art.18 /1/ the regular meetings of the MB are held by the President of the foundation every three months at a two-weeks’ written notice as for the time, place and agenda of the meeting.
18 /2/ An extra meeting of the MB can be held at the proposal of 1/3 of its members, addressed in written to the President, who is obliged to appoint the meeting not later than a month after receiving the proposal
18 /3/ For the regular holding of a meeting the presence of at least 2/3 of the MB members is necessary. For the taking of decisions the majority of 2/3 of the present is demanded

Chapter six – Termination and liquidation
Art.19 /1/ The foundation can terminate its existence by a decision of the Founder or the Court of Justice in case its objective has become unattainable, against the law or the state or public order.
19 /2/ After terminating the foundation its property becomes state property according to the law. The state is responsible for the duties of the foundation up to the amount of the received property.

Chapter Seven – Concluding Regulations
Art.20. The Founder prepares and submits the necessary documents for registering the foundation in the respective Court register
Art.21. For any issue undecided by this statute, the regulations of the Law for Persons and Family and the Civil Legislation are to be applied.