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With the signing of the Act of Union, Denmark recognized the Kingdom of Iceland as a fully sovereign state in personal union through a common monarch.
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Danish–Icelandic Act of Union
Act of 1 December 1918 putting Iceland into personal union with Denmark
The Danish–Icelandic Act of Union, an agreement signed by Iceland and Denmark on 1 December 1918, recognized Iceland as a fully independent and sovereign state, known as the Kingdom of Iceland, which was freely associated to Denmark in a personal union with the Danish king.…Source: Wikipedia (CC BY-SA)
Kingdom of Iceland
Period of Icelandic statehood from 1918 to 1944
The Kingdom of Iceland was a sovereign and independent country under a constitutional and hereditary monarchy that was established by the Act of Union with Denmark signed on 1 December 1918. It lasted until 17 June 1944 when a national referendum established the republic of…Source: Wikipedia (CC BY-SA)
Personal union
Situation of two states sharing a monarch without merging
A personal union is a combination of two or more monarchical states that have the same monarch while their boundaries, laws, and interests remain distinct. A real union, by contrast, involves the constituent states being to some extent interlinked, such as by sharing some…Source: Wikipedia (CC BY-SA)
Christian X
King of Denmark (1912–1947) and Iceland (1918–1944)
Christian X was King of Denmark from 1912 until his death in 1947, and the only King of Iceland as Kristján X, holding the title as a result of the personal union between Denmark and independent Iceland between 1918 and 1944.Source: Wikipedia (CC BY-SA)