DISMISSAL OF A DIRECTOR UNDER THE ARTICLES OF ASSOCIATION

The rules for the appointment and dismissal of a director under the articles of association differ from those for a regular employee.

SPECIAL POSITION

A director under the articles of association is on the one hand subordinate to the meeting of shareholders while on the other hand that same director has a great deal of authority and acts on behalf of the company, as employer. These dual ties give the director a special position within employment law.

NON-STANDARD RULES

Termination of a contract of employment often does not require permission from UWV WERKbedrijf (the employee insurance agency). However, this does not automatically mean that the employer is not liable to pay compensation for the termination. Furthermore, a director under the articles of association often enjoys non-standard conditions of employment such as a pre-agreed exit settlement or an option settlement.

Our employment law attorneys will counsel both directors under the articles of association and employers. Our advice covers the entire process starting with negotiations concerning conditions of employment right through to the possible dismissal of a director under the articles of association.