Friday, February 23, 2018

Corporate law (also “company” or “corporations” law) is the law of the most dominant kind of business enterprise in the modern world. Corporate law relates to how shareholders, directors, employees, creditors, and other stakeholders such as consumers, the community, and the environment interact with one another under the internal rules of the firm. Our job [...]

Directors and commissioners in the general meeting of shareholders (AGM) as such have an advisory capacity. They should therefore be called to attend the AGM and get an opportunity to render their advice. If the directors do not get this opportunity, then a decision may be annulled. This is based upon previous rulings of the [...]

The case where the court in Utrecht, the Netherlands, ruled on March 31, 2010, involved the following. The company “Double You Culinary” entered into an agreement with “BSB” with regards to the supply of drinks for a large horse racing competition in 2008. BSB has made several deliveries to Double You Culinary, who were then [...]

The Supreme Court in the Kingdom of the Netherlands has formulated a set of rules on which can be judged whether a director could be held personally liable for the debts of the company. If a director enters into an obligation on behalf of the company, while he actually knew at that moment – at [...]

Selective payment of creditors Directors of companies in financial distress should take difficult decisions in order to survive. Part of a rescue attempt can be selective payment, creditors that the company needs to secure its existence, as first payment. Recently in a ruling, the Court in ‘s-Hertogenbosch assessed the point at which a director will [...]

To be successful, directors often take difficult decisions. The director therefore has a high degree of autonomy. A director shall be accountable only in retrospect about his actions affect the general meeting of shareholders. This is logical, because there is a certain freedom that comes with successful control. But governing also brings risks with it. [...]