{"id":9081,"date":"2021-01-11T09:41:05","date_gmt":"2021-01-11T08:41:05","guid":{"rendered":"https:\/\/www.everestnotariaat.com\/the-act-on-the-governance-and-supervision-of-legal-persons\/"},"modified":"2026-03-10T13:51:00","modified_gmt":"2026-03-10T13:51:00","slug":"the-act-on-the-governance-and-supervision-of-legal-persons","status":"publish","type":"post","link":"https:\/\/everestnotariaat.com\/en\/the-act-on-the-governance-and-supervision-of-legal-persons\/","title":{"rendered":"The Act on the governance and supervision of legal persons"},"content":{"rendered":"<div class=\"et_d4_element et_pb_section et_pb_section_0  et_pb_css_mix_blend_mode et_section_regular et_block_section\" >\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t<div class=\"et_d4_element et_pb_row et_pb_row_0  et_pb_css_mix_blend_mode et_block_row\">\n\t\t\t\t<div class=\"et_d4_element et_pb_column_4_4 et_pb_column et_pb_column_0  et_pb_css_mix_blend_mode et-last-child et_block_column\">\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t<div class=\"et_pb_module et_d4_element et_pb_text et_pb_text_0  et_pb_text_align_left et_pb_bg_layout_light\">\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t<div class=\"et_pb_text_inner\"><p><em>The Act on the governance and supervision of legal persons (\u2018\u2019Act\u2019\u2019) has been a topic of discussion in our blogs a several times. This time a number of important points are listed in the context of the Act with regard to a one-tier board, dismissal of directors and the board prohibition. The Act will enter into force on the first day of July 2021.<\/em><\/p><\/div>\n\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div><div class=\"et_d4_element et_pb_row et_pb_row_1  et_pb_css_mix_blend_mode et_block_row\">\n\t\t\t\t<div class=\"et_d4_element et_pb_column_1_2 et_pb_column et_pb_column_1  et_pb_css_mix_blend_mode et_block_column\">\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t<div class=\"et_pb_module et_d4_element et_pb_image et_pb_image_0\">\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t<span class=\"et_pb_image_wrap \"><img decoding=\"async\" src=\"https:\/\/www.everestnotariaat.com\/wp-content\/uploads\/2019\/04\/foto-blog-turboliquidatie-3.jpg\" alt=\"\" title=\"foto blog turboliquidatie 3\" \/><\/span>\n\t\t\t<\/div><div class=\"et_pb_module et_d4_element et_pb_text et_pb_text_1  et_pb_text_align_left et_pb_bg_layout_light\">\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t<div class=\"et_pb_text_inner\"><p><span style=\"color: #ff9900;\"><strong>One-tier board<\/strong><\/span><\/p>\n<p>1. The Act introduces a legal basis for a one-tier board for associations, foundations, cooperatives and mutual insurance societies. A one-tier board refers to a management model in which the executive and non-executive directors jointly form one legal body. The current law only provides a one-tier board for the private limited company and the public limited company.<\/p>\n<p>2. If a legal entity has established a one-tier board, predetermined duties shall be deposited with the non-executive directors. This involves supervising the performance of duties by the directors, chairing the board of directors, making nominations for the appointment of directors and determining the remuneration of executives.<\/p>\n<p>3. It is not always allowed to set up a one-tier board. There is a chance that specific regulations to a particular sector are applicable, which require the establishment of a separate supervisory legal body. In that case, a one-tier board is therefore not possible.<\/p><\/div>\n\t\t\t<\/div>\n\t\t\t<\/div><div class=\"et_d4_element et_pb_column_1_2 et_pb_column et_pb_column_2  et_pb_css_mix_blend_mode et-last-child et_block_column\">\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t<div class=\"et_pb_module et_d4_element et_pb_text et_pb_text_2  et_pb_text_align_left et_pb_bg_layout_light\">\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t<div class=\"et_pb_text_inner\"><p><span style=\"color: #ff9900;\"><strong>Dismissal of directors<\/strong><\/span><\/p>\n<p>4. A director of a foundation, association, cooperative or mutual insurance society may be dismissed by the court at the request of an interested party or the public prosecutor.<\/p>\n<p>The grounds for dismissal shall be expanded with the Act. A director of one of the aforementioned legal entities may be dismissed under the Act for:<\/p>\n<p>(i) neglect of his duties;<\/p>\n<p>(ii) for other important reasons;<\/p>\n<p>(iii) for a change of circumstances on the basis of which the continuation of his directorship cannot reasonably be tolerated or;<\/p>\n<p>(iv) for not or not properly complying with an order issued by the provisional relief judge of the District Court pursuant to Section 2:297 of the Dutch Civil Code.<\/p>\n<p>5. The grounds for dismissal referred to in point 4 shall also apply to the dismissal of a supervisory director of an association, foundation, cooperative or mutual insurance society.<\/p>\n<p><strong><span style=\"color: #ff9900;\">The board prohibition<\/span><\/strong><\/p>\n<p>6. The regulation relating to the board prohibition of a director of a foundation, association, cooperative or mutual insurance society shall be expanded. In the current law, the board prohibition has been designed in such a way that a dismissed director may not become a director of the legal entity again within five years after his dismissal.<\/p>\n<p>The Act provides that a dismissed director may not be appoint as a director and supervisory director for a period of five years after his dismissal. The Act does, however, give an exceptional position to a director who, partly in view of the duties assigned to other, cannot be seriously blamed.<\/p><\/div>\n\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Important points are listed in the context of the Act with regard to a one-tier board, dismissal of directors and the board prohibition.<\/p>\n","protected":false},"author":5,"featured_media":10370,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"slim_seo":{"title":"Legal Persons Governance Act Key Changes Explained","description":"Learn about the Act on governance and supervision of legal persons, covering one-tier boards, director dismissal grounds, and board prohibition rules effective July 2021."},"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[12],"tags":[],"class_list":["post-9081","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-geen-onderdeel-van-een-categorie"],"_links":{"self":[{"href":"https:\/\/everestnotariaat.com\/en\/wp-json\/wp\/v2\/posts\/9081","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/everestnotariaat.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/everestnotariaat.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/everestnotariaat.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/everestnotariaat.com\/en\/wp-json\/wp\/v2\/comments?post=9081"}],"version-history":[{"count":0,"href":"https:\/\/everestnotariaat.com\/en\/wp-json\/wp\/v2\/posts\/9081\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/everestnotariaat.com\/en\/wp-json\/wp\/v2\/media\/10370"}],"wp:attachment":[{"href":"https:\/\/everestnotariaat.com\/en\/wp-json\/wp\/v2\/media?parent=9081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/everestnotariaat.com\/en\/wp-json\/wp\/v2\/categories?post=9081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/everestnotariaat.com\/en\/wp-json\/wp\/v2\/tags?post=9081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}