On July 1, 2021, all Dutch associations and foundations must comply with the new Management and Supervision of Legal Persons Act (WBTR).
The new WBTR includes the joint and individual liability of board members of a Dutch association or foundation. As of July 1, 2021, the personal consequences for board members can be significant. Previously, board members were also liable. In the new law, however, this has been extended. Thus, from July 1 onwards a board member can also be held liable for the actions of fellow board members. In financial transactions this can have major personal consequences. It does not matter whether you are a paid board member or a volunteer.
Are you the director or board member of a Dutch association or foundation? Then take the appropriate measures and ensure good governance. Good governance includes always acting in the best interest of the association or foundation, democratic decision-making, transparency and taking responsibility. Record the board’s decision-making process well. Work according to the guidelines of the law, so that there is little risk of personal liability and distressing cases.
