Court ruling reveals family feud within prominent construction company in Iceland

A recent court ruling has shed light on a family feud within a long-established construction company in Iceland. The dispute erupted when one of the owners, who had been on sick leave, returned to work and promptly dismissed the company’s accountant—who also happens to be his daughter-in-law.

The company, established around the turn of the millennium, was co-owned by the father and his two sons. Initially, the father held a 40% stake, while each son had 30%. However, following the death of the father’s wife, his share was reduced to 26.7%, making one son the largest shareholder with 43.3%.

After his return to work in October 2021, the father accused the accountant of multiple misconducts, including embezzlement and misappropriating company assets to build her own house. He sought an investigation by the Ministry of Industries and Innovation, but the ministry dismissed his request, citing insufficient evidence for his claims.

Tensions escalated between the father and his sons, who demanded a shareholder meeting. This meeting took place successfully at the end of the year, establishing the sons’ control over the company in accordance with their shareholdings.

In a further twist, the father allowed two employees to leave without notice, including his youngest son, who has since founded a competing business. He also directed company resources toward his legal disputes and charged for personal expenses, including medical bills.

Ultimately, the court confirmed his entitlement to a dividend of 7.4 million krónur, after considering expenses incurred by the company on his behalf, while ruling that the sons were justified in removing him from his position.