Norwegian Foundation Faces No Lawsuit Despite €2M in Unlawful Distributions

The Stiftelsen Rasmus Meyers Legat case has concluded with a substitute board determining that despite confirmed violations of both foundation statutes and Norwegian law, legal proceedings to recover funds are not warranted.

Key Findings from Regulatory ReviewFollowing a 2025 inspection by Stiftelsestilsynet (the Norwegian Foundation Authority), regulators found that approximately NOK 20 million had been distributed to descendants of Rasmus Meyer in violation of the foundation's governing documents and the Foundations Act. Board members from the family were also found to have been disqualified from making decisions on distributions to themselves and related parties.

"This was a serious matter for the foundation because significant assets that should have strengthened the foundation's capital for future purpose realization have gone to board members from the family and their close associates," said Siw Heggedal Longvastøl, Department Director at Stiftelsestilsynet.

Substitute Board Declines Legal ActionThe substitute board, appointed by Stiftelsestilsynet to independently assess recovery options due to the regular board's conflict of interest, has confirmed that statutory and legal breaches occurred. However, it concluded that:

No basis exists for court proceedings to recover the unlawfully distributed fundsNo grounds for pursuing compensation claims against board membersThe risk of litigation could further deplete foundation resources intended for its stated purposeAuditor Liability Recommended for ReviewNotably, the substitute board recommends that the foundation's board consider pursuing compensation claims against the auditor, who failed to flag concerns about the board's interpretation of the statutes. Stiftelsestilsynet has endorsed this recommendation, while noting the board must assess whether it is qualified to make such a decision.

The case highlights the critical role of regulatory oversight for foundations, which lack shareholder control mechanisms common in other corporate structures.