Við Tjarnir is governed by the private foundation Føroya Arena, which purpose is to build the arena as well as run it, when it is completed and has started its operations.
In brief, a private foundation is its own owner and is not required to make a profit for stakeholders. This means that any potential profits go directly to the foundation as well as the foundation needs to finance any potential deficit.
The board of the foundation sets out clear regulations on the use of Við Tjarnir so that it is clear to all parties what rights the users of the arena have.
The board members are Heðin Mortensen (chair), representing Tórshavn Municipality; Guðrið Højgaard (vice chair), representing Visit Faroe Islands; Bergur Poulsen, representing Vinnuhúsið (House of Industry); Elin H. Joensen, representing ÍSF (The Faroese Confederation of Sports); and Annika Olsen, representing Tórshavn Municipality.
§ 1
Name and Purpose
The name of the association is Føroya Arena, and its purpose is to construct and operate an arena that can house major sports events, concerts, conferences and other cultural events. Additionally, the arena will function as part of the national emergency preparedness.
§ 2
Basic Capital
The required basic capital will be procured through municipal and public support as well as through contributions from foundations, businesses, etc.
§ 3
Founder
Tórshavn Municipality is the foundation’s founder.
The founder does not possess any rights in relation to the foundation’s assets and potential profits. The foundation alone is liable for the foundation’s obligations and potential deficits.
§ 4
Selection of Board Members
The foundation is governed by a five-member board. Tórshavn Municipality elects two members, Vinnuhúsið (House of Industry) elects one, ÍSF (The Faroese Confederation of Sports) elects one and Visit Faroe Islands P/f elect one. For each member a deputy is elected, who will be summoned if the board member he or she represents is unable to attend a meeting.
Board members are elected for a term of two years and are eligible for re-election.
If a member resigns before the end of their term, a replacement is elected by the relevant party.
Regarding the construction of the arena, the board will form a building committee, which will be responsible for the construction in conjunction with the board. This committee will be dissolved once the arena is constructed and formally handed over to the foundation.
Notwithstanding the provision in Art. 8, the board is authorized to remove the above paragraph on the building committee once the building committee has been dissolved.
§ 5
Board Formation, Meetings and Responsibilities
The board appoints a chair and vice-chair.
The board will convene as often as deemed necessary by the chair or at least two members.
Board decisions are determined by a simple majority. In the event of a tie, the chair’s vote is decisive. If the chair is absent, then the vice-chair’s vote is decisive.
Upon the election of the board, all parties should collectively strive to appoint a board that possesses competencies in financing, operating, and organising large sporting and cultural events, as well as emergency preparedness.
The board forms a quorum when at least three board members are present.
Minutes are to be recorded of everything that transpires in a board meeting.
The board is responsible for the daily operations of the foundation, including the responsibility to enter into agreements on the operations of the arena as well as hiring and terminating employment.
The board will determine the rental price for the arena and will ensure that the foundation is operated in accordance with the purpose clause.
The board will strive for annual results that allows for the allocation of sufficient funds for maintenance.
The purchase, surrender or pledge of real estate is only possible with unanimous agreement on the board and with permission from Tórshavn Municipality.
Loans can only be procured with permission from Tórshavn Municipality.
§ 6
Accounts
The accounting year aligns with the calendar year.
The foundation’s annual report is to be audited by a state-authorized public accountant chosen by the board.
Tórshavn Municipality can, if necessary, appoint a public accountant to re-audit the annual report. This audit will be paid by the municipality.
§ 7
Duty to Disclose All Material Facts to Tórshavn Municipality
Tórshavn Municipality reserves the right to be informed by the foundation on all matters necessary to verify that the foundation’s operations are sound and fulfil its purpose.
§ 8
Amendments and Termination
Amendments to these articles, as well as termination of the foundation, can only be enacted if approved by a minimum of four of the five board members, and if the decision is ratified by Tórshavn Municipality.
In the event of termination, any remaining profit after all debt have been settled will be utilised within the Faroes in a manner consistent with the foundation’s purpose.
These articles were adopted in conjunction with the establishment of the foundation on 19 July 2022.
