Overhaul of the VOF, partnership, and CV

Established in 1838, the current legislation regarding the partnership, general partnership (“VOF”), and limited partnership (“CV”) is heavily outdated. Delving into it requires searching through various laws and countless court decisions.

The Partnership Work Group, comprised of legal and tax consultants from practical, academic, and commercial fields, recently submitted a proposition for new legislation to the Minister of Security and Justice. The minister is expected to accept the proposition and submit it as a bill to the House of Representatives. A similar, more radical initiative failed at the last minute a few years ago. Based on the initial reactions from the judicial world, this proposition has a higher chance of success.

The idea is that the well-known partnership, VOF, and CV will remain in existence. Under the proposition, however, they would also become legal entities, which is not currently the case. That would allow such partnerships to become legal owner of real estate, perform mergers and demergers, and make it easier to turn a partnership, VOF, or CV into an entity such as a BV, for example. Entry and exit of partners would also become easier.

In summary, there are several interesting changes on the way. To learn more about this topic, please contact our Mergers & Acquisitions team.