SZV change of policy for insurance (Statutory) Directors per September 1, 2024
Written by Sue van Elteren
Posted on 19 Aug 2024 - 3 minutes read
The Executing Body of the Social and Health Insurances (hereafter: USZV) informed recently of the updated Director Majority Shareholder (hereafter: DMS) policy regarding the status of the DMS. The DMS policy which became effective September 1, 2022, is herewith retracted and replaced with this updated DMS policy, which will become effective per September 1, 2024.
In accordance with (recent) case law, the Court re-confirmed that the DMS cannot be regarded as an employee within the meaning of the National Ordinances for Sickness and Accident Insurance as well as for the Cessantia National Ordinance, due to the lack of an authority relationship (In Dutch: gezagsverhouding).
In view of the foregoing, and in the interest of transparency and clarity, the USZV uses the following explanation of DMS, who cannot be considered an employee within the scope of the National Ordinances for Sickness (ZV) and Accident (OV) Insurance and the Cessantia National Ordinance:
- The (statutory) director (and his/her wife/husband) who directly or indirectly hold(s) more than 50% of the shares of the company and can cast more than 50% of the votes at the general meeting of the company.
- The (statutory) director (and his/her wife/husband) of whom the relatives by blood and marriage up to and including the third degree of the (statutory) director (and his/her wife/husband) jointly hold two-thirds or more of the shares of the company.
- The (statutory) director (and his/her wife/husband) who cannot be dismissed against his/her will because an increased majority of votes is required, which cannot be achieved without the votes of the (statutory) director (and his/her wife/husband).
- The directors of a company who, in addition to being a director, are also 50% shareholders of the company and who cannot be dismissed against their will because of their say in the decision-making process.
The effective date of this updated DMS policy is September 1, 2024. All new applications and/or registrations must be accompanied by the Chamber of Commerce registration, including shareholder registration, as well as a copy of the deed of incorporation of the company for verification by the USZV. Based on the received documentation, the USZV will determine whether the application and/or registration can be processed.
This updated DMS policy will be applied in keeping with the law and existing case laws. This means that no distinction will be made between DMS. The DMS who opted to remain registered with USZV per the previous DMS policy which became effective September 1, 2022, will be required to take out private insurance and/or to make alternative arrangements per September 1, 2024.
The above-mentioned changes can be read in the attachments (also in Dutch).
LATEST UPDATE: Insurance Entitlement Director Majority Shareholders (DMS)
On July 17, 2024, SZV Management decided that the DMS policy that became effective September 1, 2022, would remain in place until further notice.
This means that nothing changes for the currently insured director majority shareholders. Directors who were registered at SZV as insured employees up until September 1, 2022, will maintain their insurance at SZV if they wish. There is no change for these persons, and this was already communicated by SZV to this group in 2022.
This latest SZV update can be found on this link:
Useful documents:
Signed DMS Letter (NED) d.d. 11-7-2024
Signed DMS Letter (ENG) d.d. 11-7-2024
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