Act on Funds and Institutions Operating According to Approved Charters, No. 19, 15 May 1988
In case of any discrepancies between the original text in Icelandic and the translation, only the original text as published in the Official Gazette of Iceland (Stjórnartíðindi) is authentic. Please note as well that amendments may have been made since the translations were prepared.
Act on Funds and Institutions Operating According to Approved Charters,
No. 19, 15 May 1988
No. 19, 15 May 1988.
Article 1. [This Act shall apply to funds and institutions operating according to charters approved by a district commissioner under this Act, or according to charters approved by the Minister of Justice or the President of Iceland or the king (cf., however, the second paragraph of this Article). The Minister of Justice shall determine which district commissioner is to be in charge of the application of this Act.]1)
However, those funds and institutions that are established by statutes, decisions of the Althingi or international agreements shall be exempt from the effects of this Act, even though their charters are approved.
[Private institutions that engage in business activities shall be subject to the Act on Private Institutions that Engage in Business Operations.]2)
[Appeals may be lodged with the Minister of Justice against decisions taken by a district commissioner under this Act.]
[1]) Act No. 143/2006, Art. 1. 2) Act No. 33/1999, Art. 49.
Article 2. The foundation capital of the fund or institution shall be at least ISK 300,000, based on the credit terms index valid at the time of commencement of this Act; thereafter this shall change in accordance with the same index in January. The [district commissioner]1) shall advertise the minimum figure each year.2) Foundation capital may, however, stand at a smaller amount if there are particular reasons for this.
The foundation capital and its provenance shall be stated in the charter, together with the aims of the fund or institution and how the capital is to be used to achieve the aims. It shall also be stated clearly how the board of the fund or institution is to be appointed and who is to be responsible for managing its finances.
[The district commissioner]1) shall maintain a register of all funds and institutions operating according to approved charters; this shall be known as the ‘Fund Register'.
Approved charters and amendments thereto shall be published in Section B of the Law and Ministerial Gazette.
[1])Act No. 143/2006, Art. 2. 2) Advertisement No. 17/2006.
Article 3. The person responsible for the fund or institution shall, not later than 30 June each year, send the Auditor-General the accounts of the fund or institution for the previous year, together with a report on how the finances of the fund or institution were spent during that year.
The board of the fund or institution shall also inform the Fund Register of the persons constituting the board at any given time.
The Auditor-General shall maintain a register of the gross income and expenses, and also of the assets and liabilities, of all registered funds and institutions, together with its comments on the accounts submitted. New information shall be entered in the register as it is received. Access to information in the register shall be open to all, and copies of the register shall be given to all those who so request.
Article 4. If the report and accounts of a fund or institution have not been received for one year, or if the presentation of its accounts proves to be deficient, the [district commissioner]1) may, after receiving the proposals of the Auditor-General, authorise a police commissioner to investigate the finances of the fund or institution and to take documents and assets into his keeping. The police commissioner shall be in charge of the management of the finances until [the district commissioner]1) makes other arrangements.
Expenses resulting from the investigation of the finances and management of a fund may be charged to the fund or institution involved according to the assessment of the [district commissioner]1) and in consultation with the Auditor-General.
[1])Act No. 143/2006, Art. 2.
Article 5. Real-estate property that is the property of a fund or institution may not be mortgaged without the approval of the [district commissioner].1) The comments of the Auditor-General shall be sought before a position is adopted on an application for the mortgage or sale of such property.
[1])Act No. 143/2006, Art. 2.
Article 6. If the structure of society and other circumstances have undergone such great changes following the approval of the charter of a fund or institution that the aims provided for in its charter cannot be achieved, or if the board cannot be appointed according to its provisions, then the [district commissioner]1) may amend the charter. When such amendments are made, care shall be taken to comply with the founders' wishes as far as possible. If possible, the consent of the board of the fund or institution to the amendment shall be obtained.
According to the same rules as are set forth in the first paragraph of this Article, the [district commissioner]1) may merge two or more funds or institutions to form a single fund or institution. In such cases, the [district commissioner]1) may dissolve an approved fund or institution; its assets shall be channelled to causes that are related to the original aims.
At all times, the comments of the Auditor-General shall be sought before an approved charter is amended, or funds or institutions are merged or dissolved. The Auditor-General may also take the initiative on adopting a position on the measures according to the above.
2)Act No. 143/2006, Art. 2.
Article 7. The Minister of Justice shall set regulations containing further provisions on the contents and structure of charters and other matters regarding the application of this Act. In this connection, and according to further consultation with the Auditor-General, further rules may be set regarding collaboration between the [district commissioner]2) and the Auditor-General, as is considered necessary.
1) Regulation No. 1125/2006. 2) Act No. 143/2006, Art. 2.
Article 8. This Act shall take effect on 1 January 1989. ...
Interim provisions. ...