Hedge Funds and Private Equity Funds under Scrutiny in the Netherlands
| DOI | 10.1177/1023263X0901600205 |
| Author | Joost S. Hament |
| Published date | 01 June 2009 |
| Date | 01 June 2009 |
| Subject Matter | Article |
16 MJ 2 (2009) 225
HEDGE FUNDS AND PRIVATE EQUITY FUNDS
UNDER SCRUTINY IN THE NETHERLANDS
J S. H*
ABSTRACT
Last year the Dutch Enterp rise Chamber (Ondernemingskamer) of the Amsterdam Court
of Appeal (DEC) ruled in several inquiry procedures (enquêteprocedures) with regard to
companies wherein a private equity fund and a he dge fund participated. In these procedures
the strategy as set out and followed by the manage ment board was questioned. e rulings
emphasize the importance the DEC attaches to the management board as a gatekeeper
of the corporate interest (vennootschappelijk belang) which includes, among others, the
interests of the employees. ese rulings further con rm existing case law with respect to
the corporate interest. is may have implications for a ctive shareholders – among others
private funds and hedge fun ds – investing in Dutch companies.
Private equity funds and he dge funds are subject to public debate with respect to their
role and strategies. e industry has res ponded to this by way of self-imposed best practices.
Recently, the European Commission has proposed the directive on Alter native Investment
Fund Management, which lays down speci c information requirements with respect to
hedge funds and private equity.
is article descr ibes the recent rulings of the DEC. It also addresses the best-practices
as well as the proposed AIFM directive. It will be assessed that both from case law and the
proposed directive, the fund industr y should be aware of the role they ful l in the companies
under their management.
Keywords: private equity; hedge funds; the Netherlands; jurisprudence; increased
scrutiny
* Joost S. Hament works as a le gal counsel at ING. He regula rly publishes on (real estate) investments
funds, priv ate equity and sovereign we alth funds. is art icle has been writt en on personal title.’
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