At the same time as the bill on shareholders rights the bill on a works council’s right to present an opinion at the shareholders’ meeting became law on 1 July 2010. This law applies for works councils of NVs listed or otherwise. The right extends to the following matters:
- resolutions concerning a significant change of the company’s structure or identity as well as major acquisitions or divestments;
- decisions to appoint, suspend or dismiss a managing or supervisory director;
- adoption of the remuneration policy.
The works council should be given sufficient time before notice of the meeting is given, to determine its position on the item in question. The works council may explain its position at the general meeting. The absence of a position of the works council does not affect the validity of the shareholders resolution.
For more information see our Legal Alert.