félagið

Félagið is the Icelandic term for a formal organization formed by individuals who share a common purpose. It can refer to a club, society, association, or similar body, usually non-profit, though everyday usage may include certain commercial entities. The aim is to pursue shared interests such as culture, sport, science, charity, or advocacy.

Formation typically begins with a founding meeting where the organization’s reglur (rules) are adopted and a stjórn (board) is elected. The reglur describe the purpose, membership criteria, rights and duties of members, governance structure, and financial rules. Depending on national law, the organization may acquire legal personality upon registration or operate as an informal association.

Aðalfundur (annual general meeting) is the main decision-making forum; it approves accounts, elects the stjórn, and decides on major changes to the reglur. The stjórn handles day-to-day management and may appoint officers such as the formas (chair), ritari (secretary), and fjárhirðir (treasurer).

Financing typically comes from member dues, donations, grants, and income from activities or events. Financial reporting and governance practices strive for transparency and accountability; larger associations may be subject to statutory accounting or auditing requirements.

Assets and property held by the association belong to the organization, and liability rests with the body rather than individual members, subject to the reglur and applicable law. Dissolution follows the procedures in the reglur; remaining assets are usually allocated to charitable or public-benefit purposes specified in the reglur. Félagið thus serves as a framework for collective action and volunteer participation in Icelandic communities.