The Board of Directors of ISFI appoints a special three-member Selection Committee which, on behalf of the state, nominates candidates for the supervisory boards or boards of directors of banks or undertakings that are managed by ISFI.
The Selection Committee seeks members on its own initiative, but parties who consider they fulfil the conditions for board membership, may present themselves as candidates by sending their resume to the Selection Committee. The names of the parties, which the Committee has approached or who have sent in information about themselves, will be filed by the Selection Committee. Parties who have submitted their candidacy to sit on the board of a financial undertaking on the state’s behalf can, at any time, ask the Selection Committee to delete the information about them.
If they fulfil the eligibility requirements, the aforementioned candidates will be considered for board membership on behalf of the state when the need arises. The Board of Directors of ISFI formally requests nominations from the Selection Committee for the appointment of members to the board of directors or supervisory board of the relative bank or undertaking. The Selection Committee selects two to three candidates for every seat that becomes available on the board of directors or supervisory board of a bank or undertaking.
When nominating a candidate for board membership, the Selection Committee submits an evaluation of the candidate’s abilities with regard to, among other things, how much of an overview, knowledge and experience the relative candidate has in connection with the running of an undertaking and the working procedures of a financial undertaking. The Committee also considers the specific needs of each undertaking individually and shall nominate candidates for board membership who have a broad background in terms of their education and abilities. The candidates which the Selection Committee nominates for membership of the boards of specific undertakings shall fulfil the eligibility criteria defined in Article 52 of Act no. 161/2002 on Financial Undertakings and, in the case of financial undertakings that are limited liability companies, the eligibility criteria that is defined in Act no. 2/1995 on limited liability companies.
A more detailed discussion of the Selection Committee and its work is to be found in Article 7 of Act no. 88/2009 establishing Icelandic State Financial Investments (ISFI) and the rules of procedure of the Selection Committee.