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Director

As statutory manager you are formally manager of the company. You differ from the ordinary employee in terms of employment law. As statutory manager you usually have an employment law relationship and a partnership relationship with the company. The position statutory manager in employment law has is complex for this reason. Besides interests are often enormous. Asking for a thorough employment law advice in order to prevent problems in future or solving existing conflicts is to be advised.

Employment contract /management contract

An employment contract is often made with a statutory manager in paid employment. Practice often shows a construction in which a manager is at the disposal of another company. In that case there is no employment law relationship between this company and the manager. There is no double relationship as mentioned in the introduction. This relationship is usually easier to end than the manager who has a double relationship with the company. For the manager it is important to guarantee his interests by having a good management contract. You may think, but not solely this, of an arrangement by contract when leaving the company after a dismissal from the partnership. Such an arrangement is usually also part of an employment contract as the statutory manager does not have the same employment protection as the "ordinary" employee.

Mellema Solicitors kindly assists you in drawing up or screening your management contract or employment contract.

Dismissal

The relationship of the statutory manager with the partnership is often both ways: there is a partnership relationship and an employment law relationship with the company. To end the partnership relationship a legal decision for dismissal has to be given by a meeting of shareholders. In general a dismissal from partnership also leads to ending your employment contract. Resignation from the board on your own initiative in general also leads to an end of your employment contract. For a legal dismissal it is necessary the correct ÒassembleeÓ decides upon the dismissal according to law and statutes. In such a procedure mistakes are often made resulting in a dismissal that is illegally given. A dismissal is often given without hearing the statutory manager about the coming dismissal. If the decision to dismiss conflicts legal or statutory regulations it may be invalid or defeasible.

Regular employment law with a few exceptions also apply to you. Certain circumstances in which a dismissal is not possible are also valid. A permission to dismiss given by UWV WERKbedrijf is not necessary for a statutory manager.

Legal actions
After a dismissal by the meeting of shareholders it is always possible to bring the dismissal to court in order to get a higher compensation. This may even be done if a compensation has already been agreed upon by contract (golden parachute).

Mellema Solicitors are very experienced in assisting statuary managers and may thoroughly advise you in case of a dismissal.