Implementation and scope

The Second Company Law Directive, as amended by Council Directive 92/101/EEC, was transposed into Icelandic law by Act No 137/1994 which amended Act No 32/1978 in respect of public limited companies, valid at that time. The amended Act No 32/1978 was then republished and passed as Act No 2/1995 in respect of public limited companies (“PLC Act”).

The public limited liability company under Icelandic law to which the Second Company Directive refers to is in Icelandic defined as hlutafélag (hf.). The Icelandic Act No 2/1995 in respect of public limited companies also applies to partnership limited by shares (samlagshlutafélag (slhf.)) and to official public limited companies (opinbert hlutafélag (ohf.)).

There are two types of limited liability companies in Iceland, public and private, regulated by two separate Acts; Act in respect of public limited companies No 2/1995 and Act in respect of private limited companies No 138/1994. These Acts are in line with the requirements of the company law provisions of the EEA Agreement.