samvinnufélög

Samvinnufélög, or cooperative societies, are a form of business owned and controlled by the people who use its services or purchase its goods. In Icelandic usage, samvinnufélög are member-owned enterprises that aim to meet the common economic, social, and cultural needs of their members through mutual assistance.

Governance and membership: They are democratically controlled on a one member, one vote basis, regardless of the amount of capital contributed. Membership can include individuals and, in some cases, other cooperatives. A member typically holds a share in the cooperative, but control rests with the membership as a whole.

Purpose and finances: Surpluses are allocated among members based on their use of the cooperative’s services or goods, often distributed as patronage dividends or reinvested in the cooperative. The aim is to benefit members and their community, not to maximize external profits.

Legal status and sectors: In Iceland, samvinnufélög operate under national corporate law and are subject to regulatory provisions applicable to cooperatives. They are active in sectors such as consumer retail, agriculture, housing, and other areas where a stable supply of goods and services is desired.

Principles and history: The concept follows international cooperative principles, including voluntary and open membership, democratic member control, and concern for the community. The cooperative movement has been part of Icelandic economic life for many decades, linking producers, consumers, and local communities through collaborative enterprise.