Application to Dissolve a Fund or Non-Profit Organization

It is possible to request the dissolution of a fund or foundation operating according to an approved charter from the District Commissioner, and the District Commissioner is authorised to dissolve such an entity if the legal conditions for doing so are met.

The board, founders, individuals specified in the charter, or others with an interest in the existence and operation of the foundation may request the dissolution of the fund or foundation from the District Commissioner. The District Commissioner and the National Audit Office may also initiate such actions.

The board of the fund or foundation must present a proposal for dissolution at a board meeting, and the board's approval for dissolution must be in accordance with the current provisions of the charter.

A reasoned request for dissolution must be sent to the District Commissioner. A copy of the board meeting minutes where the proposal was presented and approved must accompany the request. The request must include a proposal on how the fund's or foundation's assets should be allocated, and the proposal must be in accordance with the foundation's objectives or similar objectives.

The District Commissioner reviews the submitted request. The National Audit Office is given the opportunity to provide its opinion on the request.

The opinion of the National Audit Office is reviewed by the District Commissioner. The board of the foundation is given the opportunity to comment on the opinion of the National Audit Office or the District Commissioner's remarks if deemed necessary.

The District Commissioner decides whether to approve the request for dissolution. If the request for dissolution is approved, it is published in the Official Gazette. The settlement of the allocation of the fund's or foundation's assets must be sent to the National Audit Office once it is completed. If the request for dissolution is rejected, the applicant is notified, and such a decision may be appealed to the Ministry of Justice.

Related Laws and Regulations

(Only in Icelandic)

Lög nr. 19/1988 um sjóði og stofnanir sem starfa samkvæmt staðfestri skipulagsskrá

Lög nr. 112/2024 um breytingu á lögum um skráð trúfélög og lífsskoðunarfélög og lögum um sjóði og stofnanir sem starfa samkvæmt staðfestri skipulagsskrá (aðgerðir gegn peningaþvætti og fjármögnun hryðjuverka).

Reglugerð nr. 140/2008 um sjóði og stofnanir sem starfa samkvæmt staðfestri skipulagsskrá

Reglugerð nr. 1125/2006 um framkvæmd laga um sjóði og stofnanir sem starfa samkvæmt staðfestri skipulagsskrá

Reglugerð nr. 1416/2024 um breytingu á reglugerð um framkvæmd laga um sjóði og stofnanir sem starfa samkvæmt staðfestri skipulagsskrá, nr. 1125/2006.