lögaðili

Lögaðili is the Icelandic term for a legal entity, a subject of law that has its own rights and obligations distinct from those of its members. A lögaðili possesses legal personality and can own property, enter into contracts, sue and be sued, and incur liabilities in its own name.

Formation and types: Lögaðili are created by law or registration and include corporations (hlutafélag, einkahlutafélag), foundations (sjóðir), and associations (félög). They may also include government bodies and other statutory entities. A lögaðili has a founding document or statutes that set its purpose, governance, and internal rules.

Capacity and representation: A lögaðili acts through authorized organs, such as a board of directors, managing director, or other executives. Its authority to bind the entity is exercised through these organs and is typically defined in its founding documents and applicable law.

Liability and governance: The entity bears its own liabilities; owners or members are generally not personally liable for the entity’s obligations, subject to exceptions such as piercing the corporate veil or personal guarantees. Lögaðili are subject to accounting, reporting, taxation, and regulatory oversight.

Dissolution and international aspects: A lögaðili may be dissolved or liquidated according to law. Recognized as a legal person in other jurisdictions, it can own assets abroad and engage in cross-border contracts, while remaining subject to international trade, tax, and anti-money-laundering rules.

See also: Legal person, corporate law, Icelandic company law.