vennootschapsraad

A vennootschapsraad (VCR) is a formal employee representation body within Dutch corporations, such as a vennootschap containing a BV or NV. It serves as a channel for employees to participate in and influence company policy at the level of the individual company, focusing on matters that affect the workforce and the organization as a whole. The VCR is distinct from, but related to, broader forms of employee representation found in Dutch labor law.

The VCR has its roots in Dutch corporate governance and labor legislation and operates alongside other structures for employee participation. Its exact rights and duties depend on the company’s governance documents and applicable law. In practice, the VCR typically provides advisory input on strategic and operational decisions, including reorganizations, changes in employment conditions, outsourcing, mergers or acquisitions, and major investments. It may also request information from the management and, in some cases, hold a formal consent right for specific decisions, depending on the company’s rules.

Composition and election of the VCR usually involve employee representatives elected by the workforce, with terms and the number of members determined by the company’s statutes and internal regulations. The council is often chaired by one of its members or by a designated chairperson.

Relation to other bodies: in many Dutch companies the Works Council (ondernemingsraad) established under the Wet op de ondernemingsraden (WOR) fulfills a similar or broader role. In practice, the vennootschapsraad remains most common in some older or smaller companies and can operate alongside or, in some cases, be superseded by an ondernemingsraad.

See also: Ondernemingsraad, WOR, BV, NV.