The bill on the governance and supervision of legal persons must provide clarity about the duties and responsibilities of directors and supervisory directors of an association, foundation, cooperative or mutual insurance society.
The bill was adopted by the Lower House on January 28, 2020. It is yet unknown when the bill will come into effect.

In first instance, far-reaching standardization of the rules for management and supervision was introduced for all legal entities. This could be achieved by placing the rules for management and supervision in the general part op Book 2 of the Dutch Civil Code. Gradually it was decided to place the rules per legal entity in the different titles of Book 2, so that every legal entity retains its flexibility.

It is remarkable that in addition to the bill, two amendments have also been adopted:

I) Multiple voting right
The first amendment concerns multiple voting right. This regulation means that one director or a supervisory director may not have more votes than the other directors of supervisory directors together. It was included in the bill that this provision would not apply to the association, foundation, cooperative and mutual insurance society. By adopting the amendment, the rules on multiple voting right will nevertheless apply to all of the above-mentioned legal forms. If the articles of association already grant a dominant vote to a director or supervisory director, these provision are valid for five years at the latest after the entry into force of the new law. The civil-law notary must be cautious to this regulation in event of an amendment to the articles of association.

II) Prevent and absence arrangements
Furthermore, an amendment on the prevent and absence arrangements has been adopted. Pursuant to this amendment, the articles of association of associations, foundations, cooperatives an mutual guarantee societies must state arrangements regarding the way in which supervision is provided for in the event of absence of all members of the management board or supervisory board.