The registered name of Cultiva is Kristiansand Kommunes Energiverksstiftelse (The hydropower foundation of Kristiansand Municipality).
The foundation was established by the municipality to secure that the funds from selling shares in the local hydropower plant will benefit the people of Kristiansand on a long-term basis.
The foundation has its seat in Kristiansand.
The objectives of the foundation are to secure jobs and good living conditions in Kristiansand(*) by providing financial support to projects that set up art, cultural and educational institutions or organisations that contribute to innovation, development, and expertise in the creative communities of Kristiansand.
Educational institutions that develop creativity and innovation can be awarded funds from the foundation.
Institutions or organisations that receive funding must conduct their business at high standards for the benefit of the local community.
The capital base is NOK 1,133,000,000.
The foundation’s capital base must be adjusted according to the annual increase in consumer prices in order to maintain the real value of the funds. The excess returns on the capital can be disbursed during the current year according to the foundation’s objectives or be added to an interest rate fund that can be used in later years.
The adjusted founding capital must never be used. If the foundation’s total assets drop below the adjusted founding capital, all yearly disbursements must be put on hold until the adjusted founding capital base is restored.
The foundation is governed by a board of trustees. The board can delegate asset management to the general manager, but the foundation’s board must provide guidelines in an asset management strategy. The assets must not be invested in a manner that is considered speculative.
The assets must preferably be invested directly in shares and bonds, value funds, or real estate.
The foundation is not allowed to take out loans, provide financial guarantees etc.
The board of trustees consists of five members and two deputies. One of the members is appointed among the Cultural Committee in Kristiansand municipality.
The council appoints the board and may remove the board.
The board members are appointed for a period of four years. Elections are organised so that every second year two or three members and one deputy are appointed.
Re-election can take place, though no member can serve more than three terms.
The chair of the board is appointed by the council.
The board constitutes a quorum when a majority of the members are present.
Decisions of the board are by simple majority.
The general manager alone, or the chair of the board and one member together, holds the right to sign on behalf of the foundation.
Minutes of the meetings is publicly available.
The council consists of eleven members. Seven members with personal deputies are appointed by the City Council of Kristiansand after recommendations from the Election Committee, one member is appointed by The Confederation of Norwegian Enterprise (NHO), one member is appointed by LO Norway. The District Court Judge in Kristiansand and the Municipal Director in Kristiansand also holds a seat the council.
The council choose their own chair.
The council members are appointed for a period of four years by the end of May.
The council convenes as a minimum every year by the end of June, and as often as the chair of the council, the board or minimum three members of the council request a meeting. The summons to attend the council shall be sent out in writing no later than 14 days prior to the meeting. The summons must include the agenda. Specific matters a member wish to consider, must be advised to the board no later than 7 days prior to the meeting. The council members must also be notified in writing of any additional matters to agenda.
Minutes of the meetings shall be kept and signed by the chair and two other members appointed by the council from among those present.
In addition to appointing the board, the council determines the annual remuneration for the board. The council appoints an auditor. The council gives a statement about the annual accounts and annual report.
The annual accounts and annual report shall be sent to the City Council of Kristiansand.
The board appoints a general manager and determines his/her salary and terms of employment.
As a part of the daily management of the foundation’s activities is asset management according to the board’s guidelines, process applications for funding, and prepare recommendations to the board.
The foundation shall be dissolved if the Norwegian law for foundations requires it.
The council shall be given an opportunity to make a statement before the board decides to apply to The Norwegian Foundation Authority for conversion.
(*) The Board of Cultiva decided on the 4th of February 2019 that the geographical area for the foundation is always the current boundary of Kristiansand municipality.