samverufélag

A samverufélag, which translates to "cooperative society" or "mutual society" in English, is a type of business organization in Iceland. It is founded and owned by its members, who are also its users. The primary purpose of a samverufélag is to serve the economic, social, and cultural needs and aspirations of its members. This means that profits are typically shared among members based on their usage or patronage of the society, rather than on the amount of capital invested.

The principles governing a samverufélag are generally those of the cooperative movement, emphasizing democratic member control, member economic participation, and autonomy and independence. Decisions are made on a one-member, one-vote basis, regardless of the member's capital contribution. This structure distinguishes it from traditional corporations where control is often proportional to share ownership.

Samverufélög can operate in various sectors, including retail, housing, agriculture, and financial services. For example, a housing samverufélag might own and manage rental properties, with tenants being members who have a say in the management and share in any financial benefits. Similarly, a consumer cooperative would be owned by its shoppers, aiming to provide goods and services at fair prices while distributing any surplus back to the members. The concept promotes mutual support and collective benefit among its participants.