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Van Doorne Newsletter July 2008      
 
 
Contents
 
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Banking and Finance

AFM and DNB levies unlawful

The AFM (Dutch authority governing financial markets) and the Dutch central bank (DNB) charge the financial institutions under their supervision for the service. The Trade and Industry Appeals Tribunal, the body that deals with socio-economic disputes, was recently asked by a number of investment firms to assess whether levies charged by the AFM and DNB were, in fact, excessive. The claim was upheld. In light of this decision, it appears that the system of levies will have to be changed.

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Commercial Contracting

General terms and conditions ‘Quick Scan’ prevents (legal) problems

There are strict rules for the use and assessment of general terms, including if they are consulted via the Internet. Many companies, however, are unaware that their terms and conditions do not comply with these rules. Proper general terms offer companies many benefits and protection against business risks. Moreover, general terms may help to conduct negotiations more efficiently. All the more reason to have a Quick Scan carried out.

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Corporate

Bill amending two-tier management system in companies put out to consultation

The Bill aims at offering an alternative to the two-tier concept used in the Netherlands, meaning that a public or private company has an executive board and a non-executive board. The consultation stage has been completed and the amended Bill will be presented to the Dutch Cabinet shortly.

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Employment

Dutch Cabinet’s response to Bakker Commission report

The Dutch Cabinet wants to introduce a broad plan to help more people get (and keep) a job, shown by its first response to the report recently issued by the Commissie Arbeidsparticipatie (the Bakker Commission). The Commission was to advise the Cabinet before 1 June 2008 which measures are to be taken to ensure that in the Netherlands, many more people will have to work longer by the year 2016 than they do now.

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Employees to pay their own speeding fines

Employers will be allowed to reclaim costs associated with speeding fines from their employees, so says the Dutch Supreme Court in a judgment handed down on 13 June 2008. The judgment has put an end to a period of uncertainty on the subject.

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European and Competition Law

Dutch Upper House rejects Public Procurement Act

No change in procurement regulations for the time being

The Upper House of the Dutch Parliament threw out a bill relating to the Public Procurement Act on 8 July 2008. Although the bill had been unanimously adopted by the Lower House, three main opposition parties (SP, D66 and VVD) and one government party (PvdA) in the Upper House voted it down.

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First NMa commitment decision

The Dutch Competition Authority (NMa) rendered its first commitment decision since its introduction. The decision pertained to five childcare organisations in Amsterdam, which according to the NMa gave each other room to influence one another’s market policies.

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Financial Institutions

New standards for consumer credit on 1 July 2008

The Netherlands Bankers’ Association [Nederlandse Vereniging van Banken], the Dutch Finance Houses Association [Vereniging van Financieringsondernemingen Nederland] and the Dutch Home Shopping Organisation [Nederlandse Thuiswinkelorganisatie] have drawn up new codes of conduct. These codes should enable credit providers to prevent excessive loans and overdrafts more effectively. The AFM has now stated that credit providers that are not affiliated to one of the three sector organisations referred to above should also introduce similar standards.         

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Health Care

Preventative health checks often subject to permit

Many institutions that offer health checks act in violation of the Dutch General (Medical) Screening Act (“WBO”). None of the twenty-two institutions inspected possessed the required permit. Most institutions are unaware that they are doing anything wrong. The Health Care Inspectorate therefore believes that a clear guideline must be put in place, setting requirements on health checks in the Netherlands.

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Is the State allowed to move for dismissal of a foundation trustee?

If the financial interests of the State of the Netherlands are harmed, it will be allowed to apply for a court order for the removal from office of the officers responsible. That was the opinion of the Den Bosch District Court. Two trustees of a foundation who had committed fraud were removed from office by court order. The court’s opinion rendered on 30 January 2008 addressed the issue of how the concept of “interested party” as referred to in Section 298 of Book 2 of the Dutch Civil Code is to be interpreted.

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Intellectual Property

Endstra back seat talks copyright-protected?

On 30 May 2008, the Dutch Supreme Court handed down its ruling in the case between the sons of Willem Endstra, who was assassinated on 17 May 2004, and reporters Bart Middelburg and Paul Vugts and their publisher. The core of the dispute was whether the back seat talks were protected by copyright.

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Information Technology

Bill on obligation to retain communications data presented to Dutch Upper House

Internet and telecom providers may soon be obliged to retain communications data for 12 months. This is to help detect serious crime. What are the consequences for providers and the privacy of citizens?

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Litigation and Insurance

Sub-district court judges’ areas of competence expanded

Justice Minister Hirsch Ballin wants to make justice in the Netherlands more accessible to citizens. Relatively simple cases may, in future, be heard before the sub-district court judge, so that legal representation will not be compulsory.

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Mediation

European Mediation Directive adopted

The European Parliament and the Council of the European Union adopted a Mediation Directive on 21 May 2008. The purpose of this Directive is the promotion of mediation in cross-border disputes in civil and commercial matters.

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Notarial Practice

Spatial Planning Act amended

The “old” Spatial Planning Act (Wro) was replaced by a completely new Act on 1 July 2008. The purposes of the amended Act are more efficient decision-making, closer compliance, improved legal protection and to clarify who is responsible for what.

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Public Private Partnership

The Ruding Commission: Grab the chances that PPPs offer

Roads and railways can be built much quicker and cheaper by private financing, as evidenced by various PPPs under ‘DBFM’ contracts. Based on this fact, the Ruding Commission recommends applying PPPs to sectors outside civil engineering.

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Tax

New Inheritance Tax Act: really an improvement?

Junior Minister De Jager plans to have a new inheritance tax Act take effect on 1 July 2010. His view is that the position of the surviving spouse and children must not be prejudiced any further. Mr De Jager also wishes to a implement a rate cut.

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Although this newsletter was prepared with the utmost care, it is only intended to highlight legal issues in general and does not provide for specific legal advice applicable to a specific situation. Van Doorne does not accept liability for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this newsletter and in no event shall Van Doorne be liable for any damages resulting from reliance on or use of this information. Readers should always take specific advice from a qualified professional if and when dealing with specific situations.

 

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