What are association statutes?
Statutes are the official rulesthat define how an association operates.
Every registered association (rekisteröity yhdistys or “ry”) in Finland must have statutes. These rules ensure the association functions legally, transparently, and in line with the Finnish Associations Act (PRH unofficial translation) .
Note! The rules must be written in Finnish or in Swedish to be accepted
by the Finnish Patent and Registration Office (PRH).
Table of contents
What must the statutes include?
The statutes must include the association’s name, municipality of residence, and a clear description of its purpose and forms of activity, along with other mandatory provisions required by law. The order of these parts can vary from one template to another, but the list of required items stays the same.
The headings below match the sections used in the statute templates offered by PRH. This makes it easy to check that your association’s statutes include all the required points.
Association’s name & domicile (Yhdistyksen nimi ja kotipaikka)
Name of the association
The name of the association must be unique; distinct from the names of other registered associations; and end with ry, which indicates that it is a registered association.
It can’t be misleading, i.e. it must not describe activities that the association does not engage in; or a swear word or other derogatory term.
Domicile or Registered office
It refers to a municipality in Finland in which the association's official address is located (registered office).
The registered office may be, for example, the home address of a member of the board. The registered office may also affect the types of grants that the association can apply for. An association may only have one registered office.
Purpose and activities (Tarkoitus ja toimintamuodot)
Why does the association exist and what does it do to reach its goals?
An association must have a purpose,i.e. a reason why it was established.
The statutes also describe the forms of activity,which are the practical ways the association works to achieve its purpose. These may include support activities to raise funds.
Members (Jäsenet)
Who can join, how are members accepted, and are there any membership fees?
The statutes must mention:
- whether the association accepts members,
- and if so, who can become a member and on what criteria,
- how members can resign or be dismissed.
They must also specify who decides on accepting new members. Usually this is the association’s board.
If the association collects a membership and/or joining fee, the statutes must also mention this, along with who decides the amount. Often this is decided by the annual meeting or general assembly.
Simplified version of the statutes
There is typically just one membership category, and the board accepts anyone who supports the association’s purpose and rules.
More detailed version of the statutes
There may be several categories of membership. These can include, for instance:
- ordinary members (varsinaiset jäsenet),
- supporting members (kannattavat jäsenet), such as individuals or organisations who want to support the association’s activities, and
- honorary members (kunniajäsenet), who are usually invited because they have significantly supported the association. Honorary members often do not pay fees.
In such cases, the statutes should also explain:
- which membership fees apply to each group,
- who decides these fees.
Board (Hallitus)
How many members is there in the board, and how long is their term?
Every official association must have a board.
The statutes must state the size of the board and its term of office.
By law, the board must have at least a chairperson and two members. It is possible to give either a fixed number of board members or to indicate a minimum and maximum, for example, a chairperson and 2 to 5 board members. If the association wants to have deputy members, this must also be mentioned.
The rules must also specify the term of office of the board, meaning how long the same board will serve. In most cases, the term is one year, from one annual meeting to the next.
Signatory authority (Nimenkirjoitusoikeus)
Who can officially sign for the association?
Signatory rights refer to who is authorised to sign the association's documents or apply for grants on behalf of the association.
By default, the chairperson always has signatory rights. If signatory rights are to be granted to someone else, for instance other board members, this must be stated in the statutes.
Financial year (Tilikausi)
When does the association’s financial year start and end?
A financial year (accounting period) is a 12-month period. Usually, it follows the calendar year but, the statutes can also specify another 12-month period.
When an association is starting its activity, the first financial year may be shorter or longer, up to a maximum of 18 months. It begins on the date when the association's charter of association* is signed. There is no need to indicate this initial period in the rules.
*What is the charter of association?
It is the document (the founding agreement) that notifies PRH about the establishment of the association.
🔗Charter of association (template on the page in Finnish) - PRH
Operations inspectors or auditors (Toiminnantarkastaja tai tilintarkastaja)
Who checks that the association’s activities follow the rules and the law?
The statutes must state how many operations inspectors or auditors the association has, any deputies, and their term of office.
An association must have at least one ordinary operations inspector or auditor.
- If there is only one operations inspector, a deputy must also be appointed.
- If there is only one auditor, and it is not an auditing organisation, a deputy auditor must also be appointed.
The operations inspector or auditor checks that the association’s activities and finances are lawful. They are usually elected for one financial year. This must be written in the statutes.
Read more about operations inspectors and auditors in the article 🔗Financial management - Financial Oversight and Auditing.
Annual meeting (Vuosikokous)
When is it held, how are members invited, and can it be remote or hybrid?
Every association must hold at least one annual general meeting per year. At this meeting, the members of the association:
- approve the financial statements, which show the results and assets for the financial year, based on its accounting records,
- decide on discharging the board from liability, meaning the members agree that the board has managed the association properly and that there are no financial claims against them,
- elect the board and the auditor or operations inspector for the next term.
The statutes must mention:
- when the annual meeting is held each year (usually in the spring, for example March–May),
- how members are invited to the meeting (for example, by letter or email at least seven days before),
- whether meetings are held in person, hybrid, or fully remotely.
How and when the members are informed about the meeting(s) must give them all a chance to receive the information.
If the association holds two general meetings a year, the statutes should state that there is:
- a spring meeting (to approve accounts and discharge liability) and,
- an autumn meeting (to decide the plan, budget and membership fees, and to elect the board).
Read more about organising board meetings in the article 🔗Meetings and events – How does the association’s board meet and make decisions?
Use of funds if dissolved (Varojen käyttö yhdistyksen purkautuessa)
What happens to the association’s assets if it closes?
The statutes must state how the association’s assets (its money and property) will be used if the association is dissolved or terminated.
These assets must always go toward supporting the association’s purpose, even after it stops operating.
Templates
PRH offers ready-made statute templates, in Finnish and Swedish, on their website to help you.
Name | Last updated | Download |
|---|---|---|
Template 1 – Simplified statutes | 04.04.2023 | |
Template 2 - One annual meeting, one membership category | 15.05.2024 | |
Template 3 - One annual meeting, several membership categories | 15.05.2024 | |
Template 4 - Two annual meetings, one membership category | 15.05.2024 | |
Template 5 - Two annual meetings, several membership categories | 15.05.2024 |
The association materials in plain language have been produced by Moniheli and Selkokulttuuri ry.
