Keywords: Association, Branche, Liability, Dutch law, WBTR
From a study of the IVBB[1] it has shown that 60 percent of boards of foundations and associations are unaware of a new Dutch law on liability[2]. This puts individual board members at risk, including many volunteers[3]. More than 26,000 board members of associations and foundations participated in the study.
In this new law it has been stated that all boards of associations and foundations must comply with the new Management and Supervision of Legal Persons Act (WBTR) on 1 July this year. This is intended to improve the management and supervision of associations and foundations, among other things. The legal definition of tasks, powers, obligations and liability will be important. Abuse of positions, conflicts of interest, financial fraud and other matters that cannot be tolerated can then be better tackled.
More than before, liability is a point of concern. It makes no difference whether board members are paid or volunteer. The law also makes no distinction according to size or type of association or foundation. Not only professional national organizations, but also all local sports, cultural and hobby associations are therefore affected.
When asked by board members if they are familiar with the WBTR, 60 percent replied that they had never heard of the law. Of the 40 percent who did know something about it, most (65 percent) have no idea yet how they are going to implement it according to the survey.
The IVBB is shocked by the results of the study. IVBB points out that in the Netherlands there are 132,000 associations and 143,000 foundations with a board. 95 percent of all those boards consist entirely of volunteers. "In less than three weeks, board members need to know the law in order to be able to act on it," IVBB said. "Therefore, internal procedures must be in order, discussed, and recorded internally. This is necessary to comply with the law. This will prevent board members from running unnecessary risks of personal liability."
If this new law affects your organisation and you need any assistance to comply with the new rules and legislations, do not hesitate to contact us. As we are more than happy to assist you in this matter
[1] A Dutch body that helps professionalize association, branches, Professions and related bodies
[2] Wet Bestuur en Toezicht Rechtspersonen (WBTR)
[3] IVBB. (2021, juni). Uitkomsten onderzoek naar bekendheid van Wet Bestuur en Toezicht Rechtspersonen (WBTR). https://shantyagenda.nl/files/06-16-2021_Uitkomsten-Onderzoek-Bekendheid-WBTR.pdf
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