Terminate and unregister

A foundation may be terminated or discontinued for various reasons. Find information on termination of different foundations here.

There are various reasons for terminations or discontinuations of foundations. Most common is that the foundation used their assets to meet the purpose and the foundation have no debts. Sometimes a foundation needs to be terminated in a special order. In order for the foundation to use all their assets, in many cases, a special permit it necessary.

All foundations can be terminated by being declared bankrupt by a court. Foundations engaged in business activities may be terminated by liquidation, after a court decided on liquidation and appointed a liquidator.

A common foundation is generally terminated when all its assets have been used to meet the purpose of the foundation and the foundation have no debts.

In many cases, it is provisioned under the foundation’s regulations that only the profits may be used for the purpose, or that all the capital cannot be used. In such a case, without making changes to, or repeal, the regulations a foundation cannot be terminated by using all its assets. To make those changes, or to repeal, generally requires the approval of Kammarkollegiet through a so called permutation.

Read more about permutation on Kammarkollegiets web siteexternal link

A reason to change the regulations may be that the foundation’s capital is generating such a small profit that it is not enough to work with to meet the foundation’s purpose. The board or trustee may even have an obligation to take these actions in order to meet the purpose. To manage the foundation’s wealth in favor of the purpose is a part of the board’s obligation. Therefore, a too large part of the foundation’s available funds may not be used for administrative costs, compared to what can be used for the purpose.

In certain cases older small equity foundations may be permitted to terminate their operations by the County Administrative Board, without a need to apply for permutation at the Kammarkollegiet.

Länsstyrelsen kan i vissa fall ge en stiftelse tillstånd till att förbruka stiftelsens tillgångar för stiftelsens ändamål eller för ett ändamål som så nära som möjligt motsvarar detta (6 kap. 5 § stiftelselagen).

För att ett sådant tillstånd ska kunna lämnas måste stiftelsen uppfylla följande förutsättningar:

  1. stiftelsen bildades för mer än 20 år sedan,
  2. stiftelsen inte har kunnat främja sitt ändamål under de senaste fem åren,
  3. värdet av tillgångarna, värderade med tillämpning av 3 kap. 3 § stiftelselagen, vid utgången av de tre senaste räkenskapsåren har understigit ett gränsbelopp som motsvarar tio gånger det då gällande prisbasbeloppet enligt 2 kap. 6 och 7 §§ socialförsäkringsbalken, samt
  4. stiftelsen saknar skulder.

Om stiftelsen uppfyller dessa krav ska styrelsen eller förvaltaren ansöka om Länsstyrelsens tillstånd. Till ansökan ska beslutsprotokoll bifogas där beslut fattats om att förbruka stiftelsens tillgångar för ändamålet. Om det nuvarande ändamålet inte kan följas måste beslut fattas om vilket näraliggande ändamål stiftelsen vill tillgodose istället.

Till ansökan ska bifogas räkenskaper som visar stiftelsens tillgångar de senaste tre åren samt en redogörelse för hur stiftelsen varit förhindrad att främja sitt ändamål de senaste fem åren.

När Länsstyrelsen har prövat stiftelsens ansökan får stiftelsen ett beslut som antingen innebär att kapitalet får förbrukas eller att stiftelsen inte får förbruka kapitalet eftersom någon av förutsättningarna inte var uppfyllda. Om det brister i någon av förutsättningarna måste stiftelsen ansöka om Kammarkollegiets tillstånd att få ändra ändamålet så att även kapitalet kan förbrukas för ändamålet.

Some foundation charters contain regulations with instructions on how a termination of the foundation shall be carried out. It may, for example, be regulated that the foundation’s board or trustee can make a decision to terminate the foundation and what then is to be done with the foundation’s assets.

Such a regulation is valid if the foundation was formed before 1996, when the Foundation Act came into effect, and if the decision to terminate the foundation according to the regulations is conditioned by an event beyond the control of the board, the trustee or the founder. For a scholarship foundation it may, for example, be provisioned that the foundation is to be terminated if the school, whose students are the recipients of the scholarships, have been closed down.

A foundation formed in 1996 or later may not be terminated with support of a termination regulation. Such a foundation are generally terminated by reason of having used all its assets to meet the purpose. If this is not possible, the foundation must apply for a permutation, as described above.

A fundraising foundation is terminated if it has lacked assets for a continuous period of two years.

A fundraising foundation may also be terminated if the board or the trustee makes a decision to terminate the operations of the foundations while having used all its assets for the purpose.

Sometimes there are provisions in the foundation’s regulations, which makes it impossible to use a part of the fundraising foundation’s assets for the purpose. Before the foundation can be terminated, these regulations must be changed, or repealed. To make those changes, or to repeal, generally requires the approval of Kammarkollegiet through a so called permutation.

Read more about permutation on Kammarkollegiets web siteexternal link

In a pension foundation the board of directors are, under certain conditions, obliged to make a decision to terminate the foundation through a liquidation, no matter what might have been provisioned under the foundation charter, which usually has the form of statutes.

Conditions for liquidation

A pension foundation must enter into liquidation if

  1. the foundation’s funds, during a considerable time, have been insufficient for its purpose,
  2. the foundation’s funds can no longer be considered necessary for its purpose,
  3. the employer have been declared bankrupt,
  4. the employer terminates its business without, in connection therewith, transfer the foundation to another employer in accordance with the provisions under 24 § the Pension Obligation Vesting Act (1967:531).

See 19 § the Pension Obligation Vesting Act as well. It is common that employers fulfil their pension commitments by buying pension insurances and then amend the costs from the foundation, which is thus emptied, cf. the second liquidation condition above.

Liquidation decision

The pension foundation’s board makes the decision to liquidate and must present a proposal on how to distribute the foundation’s funds. The proposal must be available at the workplace and immediately sent to the organization that represents the employees, see 17 § and 20 § 1 section the Pension Obligation Vesting Act.

The person who has a claim on pension, or other right to compensation from the foundation, has the right to submit a complaint concerning the distribution proposal to the supervisory authority, within a month of the date of the proposal was made available at the workplace, see 20 § 2 section the Pension Obligation Vesting Act. During the liquidation, the foundation pays overdue pensions after funds have been provisioned to cover debts incurred by the foundation itself, se 21 § 1 section the Pension Obligation Vesting Act.

Remaining funds are, in the first place, used to purchase insurance for employees’, and surviving relatives of employees’, pension claims, see 21 § 2 section 1 p the Pension Obligation Vesting Act.

Secondarily, the funds are used to support employees, or surviving relatives of employees. Such support may not exceed a reasonable pension for employees with corresponding period of employment and employee benefits, see 21 § 2 section 2 and 3 p the Pension Obligation Vesting Act.

If there are remaining funds in the foundation after this, the funds are used for charitable or other public causes, as determined by the authority, see 21 § 2 section 4 p the Pension Obligation Vesting Act.

In a personnel foundation the board of directors are, under certain conditions, obliged to make a decision to terminate the foundation through a liquidation, no matter what might have been provisioned under the foundation charter, which usually has the form of statutes.

Conditions for liquidation

A personnel foundation must enter into liquidation (19 § the Pension Obligation Vesting Act) if

  1. the foundation’s funds, during a considerable time, have been insufficient for its purpose,
  2. the foundation’s funds can no longer be considered necessary for its purpose,
  3. the employer have been declared bankrupt,
  4. the employer terminates its business without, in connection therewith, transfer the foundation to another employer in accordance with the provisions under 24 § the Pension Obligation Vesting Act (1967:531).

It is also common that a personnel foundation is terminated because all the funds have been used to meet the person, cf. condition 2 above. This may happen if the employer amends the costs incurred in the framework of the foundation’s purpose or if the foundation used the funds for the purpose.

Liquidation decision

The personnel foundation’s board makes the decision to liquidate and must present a proposal on how to distribute the foundation’s funds. The proposal must be available at the workplace and immediately sent to the organization that represents the employees, see 17 § and 20 § 1 section the Pension Obligation Vesting Act.

The subject of the foundation’s purpose has the right to submit a complaint concerning the distribution proposal to the supervisory authority, within a month of the date of the proposal was made available at the workplace, see 20 § 2 section the Pension Obligation Vesting Act.

During the liquidation, after funds have been provisioned to cover debts incurred by the foundation itself, remaining funds are used to promote the welfare of those subjected to the purpose, see 30 § 2 section the Pension Obligation Vesting Act.

Avregistrering

När en stiftelse har upplösts måste detta anmälas till Länsstyrelsen för avregistrering av stiftelsen ur stiftelseregistret. Anmälan ska göras av behörig företrädare för stiftelsen.

Till anmälan om avregistrering måste en reviderad slutredovisning för stiftelsen bifogas. För att stiftelsen ska kunna avregistreras måste det av redovisningen framgå att stiftelsen saknar såväl tillgångar som skulder.

Om stiftelsen har bedrivit näringsverksamhet eller annan verksamhet ska även ett beslutsprotokoll bifogas som visar att man beslutat att verksamheten ska upphöra och stiftelsen avregistreras.

Om en insamlingsstiftelse ska avregistreras innan det har gått två år som stiftelsen saknat tillgångar måste även ett beslutsprotokoll bifogas som visar att man beslutat att upphöra med insamling av medel och den verksamhet stiftelsen bedrivit samt att upplösa stiftelsen.

Om stiftelsen har upplösts på ett riktigt sätt fattar Länsstyrelsen beslut om avregistrering. En kopia av beslutet skickas till Skatteverket.

Anmäl avregistrering i vår e-tjänst

If you are registered as a register signatory, you may unregister the foundation in our E-service.

Only the person registered as a register signatory for a foundation may use the E-service.

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