Buren provides comments on the draft legislation regarding a statutory response period for Dutch listed companies

On 7 December 2018, the government published the draft legislation on a statutory response period of 250 days which may be invoked by the management board of a Dutch listed company. The response period would give the management board of a listed company more time to weigh the interests of the company and its stakeholders when an imminent dismissal as a result of not fulfilling the ideas of shareholders with regard to the strategy is requested or when an imminent hostile takeover is announced. The government has provided the public the opportunity to provide comments and suggestions.

On behalf of Buren, Robrecht Timmermans and Damiën Berkhout provided comments and suggestions. You can find the letter here. The letter is in the Dutch language.

The key general comments by Buren:

1. The proposal to codify the authority of the management board regarding the company’s strategy, provides further clarity and is welcomed.
2. New legislation in the form of a statutory response period, is unnecessary and an ineffective addition to the existing (protective measure) instruments of Dutch listed companies.

In the letter Buren provides various suggestions to enhance the draft legislation.

If you have questions regarding the statutory response period, do not hesitate to contact either of Robrecht Timmermans and Damiën Berkhout.

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