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Newsletter March 2011

CORPORATE

Liability Risk for Directors in the Event of Interim Distributions to Shareholders
Company’s shareholders regularly request directors to cooperate with the distribution of interim dividends. Shareholders risk the obligation to repay a part of the received distributions to the company once the annual accounts have been adopted. But to which liability risks may directors become subject? read on..

CORPORATE LITIGATION

Dutch doors wide open to Class Action Settlements
Dutch law does not provide for a class action “American style”, but it does provide for a mechanism that facilitates the implementation of collective settlements. With it’s (provisional) decision in the Converium case the Amsterdam Court of appeal has opened the gateway to class settlements in the Netherlands even further, since class action settlements are binding even if the connection with the Dutch Legal sphere is minimal. read on..

EMPLOYMENT

TUPE: Possibility to influence by not taking over employees, but recruiting one's own employees?
In the labor-intensive sector one of the relevant questions in the case of a transfer of undertaking is whether employees will be transferred from the transferor to the transferee. If not, the TUPE legislation does not apply. May a transferor refuse to take over the employees and instead recruit employees externally? read on..

Application for Rescission in Connection with Employee's Criminal Conviction
Is the criminal conviction of an employee sufficient ground to terminate the employment agreement? read on..

Request for Substitute Consent Following Works Council's Refusal to Consent to New Roster
After the Works Council had refused twice to consent to a new duty roster for the fire brigade, the employer applied to the Subdistrict Court, requesting it to give substitute consent as envisaged in Section 27 (4) of the Dutch Works Councils Act ("WOR"). read on..

EU AND COMPETITION - ANTI-TRUST

Recent Developments in the Area of Co-Insurance Pools: More (Un)Certainty?
In June 2010’s newsletter we discussed the new block exemption regulation for the insurance sector, inter alia the sections about (the admissibility of) co-insurance pools. Recently, the Netherlands Competition Authority and the Dutch Association of Insurers also published rules on pools. They appear to be more restrictive than the Regulation. read on..

DIRECTORS' AND OFFICERS' LIABILITY

Directors’ and Officers’ Liability for Late Registration in the Trade Register
On 28 January 2011, the Dutch Supreme Court gave an interesting judgment about the joint and several liability of directors (according to Section 2:180 (2) of the Civil Code) for juridical acts performed by the company before the company has been registered in the Trade Register. This director’s liability may in practice result in large claims against directors. read on..

INTELLECTUAL PROPERTY

Copyright to Work of Employees Indulging in a Hobby
Every employer may be confronted by creative initiatives by its employees that do not necessarily fall within their given job description. The question is how this flexible approach relates to the attribution of copyrights. The Court of Appeal in The Hague issued an interesting decision on this topic. read on..

MEDIA

The Court in Tros v. Pretium: Article 10 of the ECHR Applies to Order to Surrender Video Footage
In a dispute with telecom company Pretium, the Court ordered Tros to surrender to Pretium the video footage that had been recorded surreptitiously. Tros argued that this was a ‘legal error’, because no test was applied against Article 10 of the ECHR. Next, Tros initiated preliminary relief proceedings to prevent the surrender of the video footage. read on..

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