Stofnskrá

Stofnskrá is an Icelandic term that translates to "articles of association" or "memorandum of association" in English. It refers to the fundamental legal document that establishes a company or organization. This document outlines the basic rules and regulations governing the entity's formation, structure, and operation.

Key components typically found within a stofnskrá include the company's name, its registered address, the objects or purpose for which it is established, and the initial share capital if it is a limited liability company. It also details the rights and responsibilities of shareholders or members, how the company will be managed, and procedures for meetings and decision-making.

The stofnskrá serves as a foundational agreement for all stakeholders involved, including founders, investors, and employees. It provides a framework for governance and ensures transparency in the company's operations. In Iceland, the stofnskrá is a mandatory document that must be registered with the relevant authorities to legally constitute the company. Amendments to the stofnskrá typically require a formal process, often involving a resolution by the company's shareholders or members.