Ministry finds no evidence Landsvirkjun board exceeded its authority

Descriptions by former Landsvirkjun chief executive Hörður Arnarson and the company’s board differ over four board meetings held without him, mbl.is reported. Hörður says he was unlawfully excluded, while the board denies acting beyond its legal authority.

The Ministry of Finance and Economic Affairs said it sees no reason to conclude that the board exceeded its powers. The assessment appears in a 30 October memorandum from the ministry’s Office of Management and Improvement to Finance and Economic Affairs Minister Daði Már Kristófersson. The memorandum followed Hörður’s objections to the board’s meeting arrangements but does not address each of the four meetings individually.

In a statement issued on Monday, the board said it had reviewed the cases raised by Hörður and obtained an independent legal opinion. It said nothing indicated that it had exceeded its role or authority.

Article 6 of the law governing Landsvirkjun states that the chief executive “shall attend board meetings.” The company’s board rules also provide for the chief executive and deputy chief executive to attend, but allow the board to decide otherwise in individual cases.

The rules cite personal matters concerning the chief executive, such as employment terms or departure, as possible exceptions. They also provide for one annual board meeting without the chief executive, deputy chief executive or other employees, to discuss the board’s work and performance, the chief executive’s performance and the rules governing his role.

In a 26 October letter to the minister, Hörður said five board meetings had been held since the new board took office at which he was either asked to leave or not informed until afterwards. He did not object to the board’s annual meeting without management on 19 March, but said he had been unlawfully barred from the other four.

He said the first meeting was held on 25 June 2025, when he was asked to leave. According to Hörður, the minutes describe it as a working meeting where board members aligned their views after the first two months. At a second meeting, on 9 September that year, he was also asked to leave; the minutes say company matters were discussed.

The other two meetings took place on 23 June and 23 September this year. Hörður said they dealt with his concerns about board governance and the legality of its practices.