To adapt the Foundations Act to today’s foundations, the Government has appointed a committee to consider changes in the Act. This is a follow-up of the governing parties’ decision to ensure that the rules for foundations as far as possible contribute to promote foundations as a form of entity.
There seems to be a tendency towards an increased number of large foundations and fewer small foundations. Correspondingly, the number of foundations with equity of more than NOK 1 billion (approximately GBP 80 million) has increased. The total booked equity in the foundations increased from NOK 43 billion to NOK 137 billion from 2005 to 2014. Norwegian foundations distribute several billion kroner annually, including to research and education. There are currently about 35 000 employees in Norwegian foundations.
Among other topics, the committee has been asked to evaluate the following issues:
– The principle that the board shall manage the foundation’s capital in a proper way
– Whether smaller foundations shall be accountable and required to audit the accounts
– Whether anyone but the board can distribute money in larger foundations
– Whether the rules on change and liquidation of foundations are appropriate
