Employment Contract Director-Major Shareholder

Employment contract DMS and his Ltd.

A director-major shareholder (in Dutch: DGA), also called a director under the articles of association, has to draw up an employment contract with his own private limited company under Dutch law. This is remarkable, since the one who signs and the one who enters into the contract are the same person.

This Employment Contract Director-Major Shareholder serves as evidence for the Dutch Tax and Customs Administration that you are employed by your own company.

How to fill in the contract

Please fill in the information of the director and major share holder and the private limited company under Dutch law. Check the articles of association to find out who is authorized to sign on behalf of the limited company. Two kinds of insurance are included: an invalidity insurance and a director’s and officer’s liability insurance. These are optional and it is possible to delete article 7 and 8.

Summary

Includes provisions about:

• Personal and company information;
• Salary;
• Expenses;
• Car and travel allowance;
• Insurance;
• Nondisclosure.

Context

This document can be used in the following situation:
The Dutch Tax and Customs Administration, shareholders and sometimes also joint venture partners demand there is an employment contract director and major shareholder.

This model is comparable to an employment contract director under the articles of association in salaried employment without being a major shareholder (in Dutch: arbeidsovereenkomst statutair directeur). The difference is that this template contains as few obligations as possible. For instance it does not contain any unnecessary obligations towards shareholders, since they are the same person.

In terms of salary you must use the Customary Salary Scheme (in Dutch: Gebruikelijk Loon), unless you obtained an exemption. For this you can use our model letter reduction customary salary scheme (in Dutch: verlaging gebruikelijk loon).