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A Wider Interpretation of the Concept of ‘Entrepreneur’

The Netherlands Broadcasting Authority (Nederlandse Omroep Stichting ("Stichting NOS")) operates two enterprises, namely the Netherlands Public Broadcasting (Nederlandse Publieke Omroep ("NPO")) and NOS RTV. Both enterprises have a Works Council. In brief, the NPO, as the administrative part of Stichting NOS, carries out the duties and powers that have been granted to Stichting NOS by law, in so far as these duties and powers do not relate to 'the making of a program'. The duty 'the making of a program' is carried out by NOS RTV. In accordance with the Media Act, the board of Stichting NOS has appointed a program director with NOS RTV.

In the run-up to the adoption of the annual plans for the various public radio stations, on 6 May 2008 the station manager of Radio 1 sent a proposal to the editorial staff of the station, which proposal was also discussed with the editorial staff on 8 May 2008. The editorial staff of the station consists of, inter alia, representatives of NOS RTV. Next, on 22 May 2008, the draft 2009 annual plan of Radio 1 was discussed with the editorial staff. In the end, the board of NPO adopted the 2009 annual plan for Radio 1 on 17 June 2008.

The Works Council of NOS RTV has lodged an appeal against Stichting NOS with the Enterprise Section. In the view of the Works Council, the program director has instructed the representatives of NOS RTV who are members of the editorial staff with respect to the meeting of 22 May 2008 in such a manner that there has been a decision of the program director, or at any rate that the instructions were preceded by a decision. The Works Council is of the view that it has wrongly not been consulted with regard to the decision of the program director of NOS RTV of 22 May 2008.

The Enterprise Section

The Enterprise Section has denied the request of the Works Council because the amendments that would have been included in the decision were already brought forward in the letter dated 6 May 2008 and the draft 2009 annual plan of 22 May 2008. Therefore, there is no question of a new decision. So far, this judgment offers almost nothing new. Nevertheless, in this judgment the Enterprise Section has revealed - between the lines - a remarkable interpretation of the concept of 'entrepreneur' within the meaning of the Works Council Act (Wet op de Ondernemingsraden ("WOR")). In only one sentence the Enterprise Section has observed that Stichting NOS, the respondent in these proceedings, cannot be regarded as the entrepreneur who has taken the disputed decision. It can be concluded from this observation that the Enterprise Section is of the view that NOS RTV, although not in this case, can theoretically be regarded as the 'entrepreneur'. This view can be qualified as remarkable, because NOS RTV does not have corporate personality and, in addition, is not a natural person.

'Entrepreneur' Within the Meaning of the WOR

The concepts of 'entrepreneur' and 'enterprise' within the meaning of the WOR must be distinguished well. In the WOR entrepreneur means the natural person or the legal person who operates the enterprise, in other words who provides the material means for the enterprise to be able to perform. The enterprise is the proper industrial organization. It is a collaborative venture of people which presents itself in society as an independent unit. The entrepreneur is therefore the one who operates the industrial organization. An entrepreneur can operate various enterprises. According to the current interpretation, the entrepreneur is a legal person. The present judgment would stretch the concept of entrepreneur within the meaning of the WOR to non-legal persons, not being natural persons. The question is whether this was the intention of the Enterprise Section or whether it has unconsciously ignored the fact that Stichting NOS is the entrepreneur?

Consequences

In our view, the latter is the case and the Enterprise Section has unconsciously ignored that Stichting NOS is the entrepreneur. After all, the Enterprise Section has assumed as an established fact that Stichting NOS operates two enterprises. In view of the concept of entrepreneur within the meaning of the WOR, Stichting NOS must therefore be regarded as an entrepreneur. However, time will tell whether the present case is an incident or whether the decision of the Enterprise Section was a conscious choice after all.

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Soo-ja Schijf
Tel: +31 20 5506 832
E-mail: s.schijf@kvdl.nl



  

Simon van IJsendoorn

Tel: +31 20 5506 859
E-mail: simon.van.ijsendoorn@kvdl.nl

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