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14 May 2020 / article

Trend Report: Special litigation committees in the Netherlands

Trends and developments in Dutch corporate governance

The use of ad hoc special committees in Dutch practice has seen a significant shift over recent years. While traditionally such committees have been used primarily to supervise and steer M&A and restructuring transactions, we see an increased use of special litigation committees in high-stakes (often bet-the-company) litigation involving Dutch companies. Such special litigation committees are typically used to oversee and steer litigation, address conflict of interest concerns and/or provide relevant stakeholders with a forum to share information and views.

We believe that there can be important governance-related reasons for Dutch companies to establish special committees when faced with (pending or threatened) litigation. Accordingly, we expect that this trend will continue, especially in the context of complex bet-the-company litigation and internal investigations. The more well-established these committees become, the more likely this is to impact Dutch corporate governance standards for when and how to structure special litigation committees.

Want to learn more? A trend report with our views on the current use of special litigation committees in the Netherlands and expected developments is freely available on the Loyens & Loeff website.

Download the pdf-version here

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