Supervisory board and works council in the Netherlands opportunities for the works council to influence the composition of the board: Context, conditions and effects

Abstract

In this paper, we present our first research findings on the opportunities for works councils and their practices to influence the supervisory board member(s) election under the ‘old’ co-option system. When and under which conditions works councils are really using their right to propose supervisory board candidates and what kind of effects could be expected from that? The conceptual framework for our research work is presented next, finally followed by a description of the first research findings. The research findings to date, reveal what sort of conditions and factors have a stimulating impact on the works councils’ behaviour to use the formal right to propose supervisory board candidates, to influence the composition of the supervisory board and to build up a relationship with that board. The research also shows the perceived effects of proposing candidates. The findings confirm the expectation that the attitude of the parties involved is very dominant and that works councils which are really striving for a better strategic position at the corporate level, are more actively involved than other works councils.