Corporate Group Decision Making And Employee Participation

In the management structure of global companies, the de facto management of a Dutch subsidiary may, in practice, be in the hands of the (ultimate) shareholder. This business practice is often part of a matrix organization, in which the decision-making process is determined by the specific business activity, irrespective of location or country. Certain decisions made by a shareholder, even if they are not made as such by the management of the subsidiary for which a works council has been set up, may nevertheless be deemed to have been made by that subsidiary. A clear understanding of the effective decision-making process in global organizations—and the effect of that process on requirements in the field of employee participation—is critical for steering that process in the right legal direction.