In respect of the position of the director under the articles of association, various provisions apply under employment and corporate law.

Different employment law rules apply to the director under the articles of association compared to the ‘regular’ employee. An important difference is the protection from dismissal.

The director can be dismissed by the competent body (often the General Meeting of Shareholders or the Board of Supervisory Directors). In principle, the employment agreement can be terminated by adopting a resolution to dismiss the director, and by subsequently taking the notice period into account.

So there is no preventive dismissal assessment by the UWV or the subdistrict court judge.

For this reason, it is advisable to have a contractual severance pay included in the employment agreement already at the time of entering into the agreement.

Any questions about your legal position as director? All-Right Advocatuur will be happy to assist you.