Area of expertise | Government Participation

Thuis Partners (TP) possesses extensive expertise in this specialized field. We have supported numerous government participations in structuring their governance and advised public authorities in managing and liquidating government holdings. Often, when a government participation faces a crisis—such as imminent bankruptcy or negative publicity—we serve as the trusted advisor. As one of the few law firms in Limburg with a deep understanding of the specific legal landscape surrounding government participations, we are well-equipped to provide tailored and effective guidance.

When establishing or acquiring a government participation, the governance structure must be carefully considered. Should a Supervisory Board be established, and if so, should it consist of aldermen, civil servants, or independent individuals—or perhaps a combination of both? The design of the governance structure can have significant implications for the flow of information, which, in turn, may influence the relationship between the executive board (College van B&W) and the municipal council. It is essential to address these considerations in order to ensure transparency, accountability, and effective management of the government participation.

The decision-making process must also be properly structured. In many instances, the municipality acts as the shareholder. It is essential to ensure that the casting of votes on shares is conducted in a legally sound manner. What role should the executive board (College van B&W) and/or the municipal council play in this context? The chosen structure must then be reflected in the articles of association, governance regulations, and shareholder agreements, ensuring both legal compliance and clarity in the management and oversight of the government participation.

When a government participation faces significant challenges, the government is often seen as the “savior.” Public authorities are generally willing to step in, provided it is certain that the support will be a one-time intervention. Specialists at TP frequently conduct due diligence investigations to assess whether the assistance will indeed be temporary and ensure that the risks are fully understood and managed. This thorough analysis helps prevent future liabilities and ensures that any government intervention is both necessary and sustainable.

It is not uncommon for a government participation to be sold, either in part or entirely. TP provides comprehensive support throughout the entire sale process, ensuring a smooth and legally sound transaction. In some cases, government participations face the risk of bankruptcy. A key consideration in such situations is the potential liability of the public entity involved, particularly with regard to bankruptcy-related responsibilities. Our experts are well-versed in navigating these complex issues, helping mitigate risks and ensuring that all actions taken are legally compliant.