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ARTICLE · 29 JANUARY 2024

ECJ Rules On The Status Of The Board Members

KPMG in Cyprus
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The referring court asked whether a member of the board of directors carries out economic activities independently.

CyprusTax
Michael C. Grekas
Michael C. Grekas
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On 21 December 2023 the European Court of Justice (ECJ) published its decision in the case C-288/22 (Administration de l'enregistrement, des domaines et de la TVA) concerning the status of a member of the company's board of directors.

The referring court asked whether a member of the board of directors carries out economic activities independently.

Facts of the case

TP, being a member of the board of directors of multiple companies in Luxembourg, was involved in receiving reports from senior managers and representatives, discussing strategic proposals, choosing operational managers, etc. He also took part in the decision-making regarding the accounts of the companies concerned and the proposals to be submitted to shareholder meetings, strategy, and risk policy.

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