---
name: Legal Structure Audit
description: Holistic legal due diligence audit for non-profit association structures with commercial subsidiaries, EU grant eligibility, and cross-border compliance. Covers Austrian VerG 2002, BAO §§ 34-47, EWIV regulations, and Horizon Europe requirements.
group: smart.security
---

# Legal Structure Audit Skill

## Purpose

Perform a comprehensive legal and due diligence audit across all legal structure documents (Statutes, Holding Architecture, Grant Applications) to ensure:

1. **Internal Consistency** — All documents tell the same story
2. **Legal Compliance** — Austrian VerG 2002, BAO, EU regulations
3. **Grant Eligibility** — Horizon Europe, FFG, Creative Europe readiness
4. **Tax Optimization** — Gemeinnützigkeit preservation with subsidiary structures
5. **Risk Mitigation** — Identify gaps that could endanger non-profit status

## Audit Dimensions (10 Dimensions)

### DIM-1: Statutory Completeness (VerG 2002 §3)

**Check:** Do the Vereinsstatuten contain ALL mandatory elements per VerG 2002?

| Required Element                                    | VerG Reference | Check |
| --------------------------------------------------- | -------------- | ----- |
| Name des Vereins                                    | § 3 Abs 2 Z 1  | ☐     |
| Sitz des Vereins                                    | § 3 Abs 2 Z 1  | ☐     |
| Klare Umschreibung des Zwecks                       | § 3 Abs 2 Z 2  | ☐     |
| Tätigkeiten und Art der Zweckerfüllung              | § 3 Abs 2 Z 3  | ☐     |
| Aufbringung finanzieller Mittel                     | § 3 Abs 2 Z 4  | ☐     |
| Bestimmungen über Erwerb/Verlust der Mitgliedschaft | § 3 Abs 2 Z 5  | ☐     |
| Rechte und Pflichten der Mitglieder                 | § 3 Abs 2 Z 6  | ☐     |
| Organe des Vereins und Aufgaben                     | § 3 Abs 2 Z 7  | ☐     |
| Art der Bestellung der Organe                       | § 3 Abs 2 Z 8  | ☐     |
| Erfordernisse für Beschlussfassungen                | § 3 Abs 2 Z 9  | ☐     |
| Art der Schlichtung von Streitigkeiten              | § 3 Abs 2 Z 10 | ☐     |
| Bestimmungen über freiwillige Auflösung             | § 3 Abs 2 Z 11 | ☐     |
| Verwendung des Vereinsvermögens bei Auflösung       | § 3 Abs 2 Z 11 | ☐     |

**Scoring:** Each missing element = -1 point. Score = 10 - (missing \* 0.77)

### DIM-2: Gemeinnützigkeit (BAO §§ 34-47)

**Check:** Are the statutes compliant with Austrian tax-exempt requirements?

| Requirement                                       | BAO Reference | Check |
| ------------------------------------------------- | ------------- | ----- |
| "Nicht auf Gewinn gerichtet" explicit in statutes | § 39 Z 1      | ☐     |
| Zweck fördert die Allgemeinheit                   | § 35 Abs 1    | ☐     |
| Ausschließlichkeit (only non-profit purposes)     | § 39 Z 1      | ☐     |
| Unmittelbarkeit (direct pursuit of purposes)      | § 40          | ☐     |
| Vermögensbindung bei Auflösung (asset lock)       | § 39 Z 5      | ☐     |
| No profit distribution to members                 | § 39 Z 4      | ☐     |
| Actual management matches statutes                | § 41          | ☐     |
| Purposes fall under § 35 Abs 2 catalog            | § 35 Abs 2    | ☐     |

**Scoring:** Each gap = -1.25 points. Score = 10 - (gaps \* 1.25)

### DIM-3: Holding & Subsidiary Compliance

**Check:** Is the subsidiary (LLC/GmbH) structure legally sound?

| Requirement                                        | Check |
| -------------------------------------------------- | ----- |
| Statutes explicitly allow Beteiligungen            | ☐     |
| Dividends/returns flow to non-profit purpose       | ☐     |
| Commercial activity isolated in subsidiary         | ☐     |
| No personal enrichment of founders/members         | ☐     |
| Transfer pricing documentation planned             | ☐     |
| IP ownership allocation clearly defined            | ☐     |
| Subsidiary articles consistent with parent purpose | ☐     |

**Scoring:** Score = 10 - (gaps \* 1.43)

### DIM-4: EU Grant Eligibility

**Check:** Can the Verein legally apply for EU grants?

| Requirement                                 | Framework                  | Check |
| ------------------------------------------- | -------------------------- | ----- |
| Legal entity with Rechtspersönlichkeit      | Horizon Europe MGA Art 7   | ☐     |
| Established in eligible country (EU/EEA)    | Horizon Europe Rules       | ☐     |
| Not bankrupt/in liquidation                 | Exclusion Criteria Art 136 | ☐     |
| Can demonstrate operational capacity        | Proposal Template          | ☐     |
| Can demonstrate financial capacity          | Proposal Template          | ☐     |
| PIC number obtainable                       | Funding & Tenders Portal   | ☐     |
| Statutes allow receiving public funding     | Internal                   | ☐     |
| Consortium participation explicitly allowed | Internal                   | ☐     |

**Scoring:** Score = 10 - (gaps \* 1.25)

### DIM-5: Cross-Document Consistency

**Check:** Do Statutes, Structure Doc, and Grant Applications align?

| Consistency Point                                      | Check |
| ------------------------------------------------------ | ----- |
| Verein name identical across all documents             | ☐     |
| Purpose/Zweck wording consistent                       | ☐     |
| Entity roles (Leader/Partner/Subcontractor) consistent | ☐     |
| Tax strategy described consistently                    | ☐     |
| Funding rate claims match entity type                  | ☐     |
| LLC function described identically                     | ☐     |
| EWIV role consistent                                   | ☐     |
| Research topics match across Statuten and Grant Apps   | ☐     |

**Scoring:** Score = 10 - (inconsistencies \* 1.25)

### DIM-6: Risk Assessment (Begünstigungsschädlichkeit)

**Check:** Could any planned activity endanger non-profit status?

| Risk Area                               | Check |
| --------------------------------------- | ----- |
| Commercial activity dominance risk      | ☐     |
| Member benefit vs. public benefit ratio | ☐     |
| Founder remuneration controls           | ☐     |
| Related-party transaction safeguards    | ☐     |
| Asset lock clause strength              | ☐     |
| Nebenzweckprivileg boundaries defined   | ☐     |

**Scoring:** Score = 10 - (risks \* 1.67)

### DIM-7: Governance & Controls

**Check:** Are governance mechanisms adequate for grant management?

| Requirement                                       | Check |
| ------------------------------------------------- | ----- |
| Minimum 2 Vorstand members                        | ☐     |
| Rechnungsprüfer (auditors) defined                | ☐     |
| Schiedsgericht (arbitration) defined              | ☐     |
| GV quorum/voting rules defined                    | ☐     |
| Conflict of interest provisions                   | ☐     |
| 4-eyes principle for financial transactions       | ☐     |
| Document retention policy (7 years per BAO § 132) | ☐     |

**Scoring:** Score = 10 - (gaps \* 1.43)

### DIM-8: International Operations Readiness

**Check:** Can the structure operate across borders?

| Requirement                            | Check |
| -------------------------------------- | ----- |
| Worldwide activity scope in statutes   | ☐     |
| US LLC formation authority in statutes | ☐     |
| EWIV participation authority           | ☐     |
| Cross-border IP licensing framework    | ☐     |
| DTA (Double Tax Agreement) awareness   | ☐     |

**Scoring:** Score = 10 - (gaps \* 2.0)

### DIM-9: Documentation & Audit Trail

**Check:** Is the documentation audit-ready?

| Requirement                                 | Check |
| ------------------------------------------- | ----- |
| Statuten in printable/signable format       | ☐     |
| Grant applications reference correct entity | ☐     |
| Budget breakdowns match entity capabilities | ☐     |
| Gantt charts show realistic timelines       | ☐     |
| Partner roles documented                    | ☐     |

**Scoring:** Score = 10 - (gaps \* 2.0)

### DIM-10: Future-Proofing & Scalability

**Check:** Can the structure grow without restructuring?

| Requirement                               | Check |
| ----------------------------------------- | ----- |
| Broad enough Zweck for new research areas | ☐     |
| Additional subsidiary creation allowed    | ☐     |
| Membership categories extensible          | ☐     |
| International expansion path clear        | ☐     |
| Spendenabsetzbarkeit achievable           | ☐     |

**Scoring:** Score = 10 - (gaps \* 2.0)

## Execution Steps

1. **Read** all three documents (Statuten, Structure, Grant Applications)
2. **Score** each dimension (0-10) with specific findings
3. **Identify** critical gaps (P0), high gaps (P1), medium gaps (P2)
4. **Generate** remediation recommendations per gap
5. **Output** an HTML audit report with:
   - Executive Summary with radar chart
   - Dimension-by-dimension findings
   - Gap register with priority
   - Remediation plan
   - Overall compliance score (weighted average)

## Scoring Formula

```
Overall Score = (DIM1 * 1.5 + DIM2 * 2.0 + DIM3 * 1.5 + DIM4 * 1.5 +
                 DIM5 * 1.0 + DIM6 * 1.5 + DIM7 * 1.0 + DIM8 * 0.5 +
                 DIM9 * 0.5 + DIM10 * 0.5) / 11.5

Weight Legend:
  2.0 = Critical (Gemeinnützigkeit — lose this, lose everything)
  1.5 = High (Structure, Grants, Risk)
  1.0 = Medium (Consistency, Governance)
  0.5 = Low (International, Documentation, Future)
```

## Output Format

Generate a single HTML file (`Legal-Structure-Audit.html`) in the Documentation directory, styled consistently with existing OHM documentation (dark theme, Inter font, print-ready).