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Large BVs and NVs – two-tier board companies – are obliged to appoint supervisory directors. They usually sit on a separate Supervisory Board (Raad van Commissarissen), but in a one-tier model they are non-executive members of the Board of Directors of the company. A company qualifies as a two-tier board company if it meets certain requirements.
If a company has more than 50 employees, the management must ask for the advice or consent of the works council when taking a number of decisions. These include, for example, decisions on the transfer of the company or changes to a pension scheme. If the management does not ask the advice of the works council or does not (entirely) follow the advice of the works council, the works council can lodge an appeal against the decision.
A legal entity, such as a BV, NV, association or foundation, can take part in economic transactions only if it is represented by natural persons. These are generally the directors. The directors conclude contracts on behalf of the legal entity. If the company does not fulfill the agreements made in these contracts or causes damage, the company can be held responsible. Not the directors. However, in certain cases directors can be held personally liable. Externally by third parties, or internally by the company itself.
To start a private limited company (BV) or a public limited company (NV), you need to follow a number of steps. For example, you must have deed of incorporation drawn up and ratified, pay the minimum start-up capital into the company and register the company. The procedure for setting up a BV is very similar to the procedure for setting up an NV, but differs in one important point: the minimum start-up capital required. When setting up a company, it is important that the company is set up properly from the start. For example, the statutory structure and the internal cooperations must be given shape (e.g., shareholders must arrange mutual agreements in a shareholders’ agreement). To ensure that this is done correctly, it is advisable to engage a lawyer.
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