Works councils fail to nominate supervisory board members
Only one in three works councils at Dutch companies take advantage of their right to nominate members of the supervisory board, the Financieele Dagblad reports on Monday.
According to the National Register, an organisation set up to help works councils find suitable candidates, many councils are not aware of their powers.
In addition, they are often too passive, the register’s director Olaf Smits van Waesberghe told the paper. ‘They agree quickly to the management or current supervisory board’s suggestions.’
Without external suggestions, boards tend to appoint from within their own circles, perpetuating the old boy’s network, he said.
The Netherlands has 4,500 companies where works councils can nominate board members. Every year, some 2,500 jobs need to be filled.
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