Resolution Committee

According to amendment to Act on Financial Undertakings the Resolution Committee was dissolved on the 1st January 2012 and the Winding-up Committee took over respective tasks previously done by the Resolution Committee.

On 9 October 2008 Kaupthing Bank’s board of directors resigned on its own initiative due to the bank’s financial difficulties and a Resolution Committee was appointed for the Estate by the FME in accordance with Act no. 125/2008 on the Authority for Treasury Disbursements due to Unusual Financial Market Circumstances etc. passed in reaction to the collapse of the banking system in Iceland. The Resolution Committee immediately assumed control of the Estate and wields all the authority of the Estate's board of directors.

The Resolution Committee was initially appointed by FME, which is an independent government entity, but the Resolution Committee’s independence has been enhanced with the enactment of Act no. 44/2009.

  • The role and duties of the Resolution Committee were laid down in the Act on Financial Undertakings, no. 161/2002, as amended by Act no. 44/2009 and subsequent amendments, also the Act no. 21/1991 on Bankruptcy etc. According to Act no. 44/2009 the Resolution Committee was given power by law to represent the Estate in all matters, safeguard its interests and maximise asset value. The provisions of articles 102 and 103 of the Act on Financial Undertakings clearly stated that the Resolution Committee had a legal obligation to maximise the value of Kaupthing's assets and preserving the interests of the creditor body as a whole.

The Resolution Committee handled Kaupthing's affairs, which included, directing its daily operations, ensuring assets were handled properly, concluding contracts and other legal instruments on its behalf, and safeguarding its interests to the utmost extent possible.

The Resolution Committee’s principal objective was to ensure proper handling of, and maximise the value of the Kaupthing's assets to the benefit of its creditors and to return value to creditors as timely as possible.

 


 

Disclaimer: This information is for informational purposes only and shall not be made legally binding towards Kaupthing hf., the Resolution Committee or the Winding-up Committee. Please note the terms of the general disclaimer governing use of this website and the information contained on the website.
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