Knowledge Base


Welcome to the Expatax Knowledge Base containing hundreds of answers to questions we received about topics concerning tax, payroll, accounting, legal, business etc. related to the Netherlands. Search in our Knowledge Base or browse the different categories. Expatax is a Dutch tax and accounting firm specialized in assisting international workers, freelancers and companies. Don't hesitate to contact us if you need assistance or check our website.


Can a limited company have shares without profit rights and/or voting rights?


Question:
 
Can a limited company have shares without profit rights and/or voting rights?
 
Answer:
 
Any share must either have a voting right, a profit right or both. If a share doesn't have a voting right nor a profit right then it is not a share.

So unlike the rules before 1 October 2012 it is now possible to decide which right will be linked to which shares. This means that you can give a shareholder only profit rights for example if he just wants to be seen as an investor and not as somebody who wants to be involved with the management of the company. Or you can give a shareholder only a voting right and not a profit right if this person should be involved with the management of the company but does not require a share of the profit, for example a parent who steps back in favour of his child who will take over the company.

So you can determine how to structure the company. More flexibilty, more complications.
 
Attached Files
There are no attachments for this article.
Comments
There are no comments for this article. Be the first to post a comment.
Name
Email
Security Code Security Code
MENU