In October 2004 a change was made to Dutch law concerning the so-called "large company regime", which means that the appointment of supervisory board directors in those Dutch companies subject to this special regime are appointed by the company's shareholders, who vote on nominations made by the supervisory board itself and the works council.
In October 2004 a change was made to Dutch law concerning the so-called "large company regime", which means that the appointment of supervisory board directors in those Dutch companies subject to this special regime are appointed by the company's shareholders, who vote on nominations made by the supervisory board itself and the works council.
Delta Lloyd, Aviva's Dutch subsidiary, to which this special large company regime applies, takes the view that on the basis of agreements made in the past, the appointment of its supervisory board directors should continue to be made according to the mechanism that previously existed, under which supervisory board directors are appointed by the supervisory board itself, taking into account recommendations and/or objections of the shareholders. Accordingly, Delta Lloyd took proceedings against Aviva in Amsterdam to persuade the court to allow Delta Lloyd to retain its previous structure, for which the new legislation also allows.
The Amsterdam court has directed Aviva to vote in favour of a change to Delta Lloyd's articles requiring Aviva to adhere to the appointment mechanism which existed before the new law came into force.
Aviva has the right of appeal to the Court of Appeal in Amsterdam and is currently considering whether it wishes to do so.
Aviva does not expect the court's decision to have any adverse impact on the financial or operational performance of Delta Lloyd.
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+44 (0)20 7662 8115
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Notes to editors:
- Aviva is the leading provider of life and pensions to Europe with substantial positions in other markets around the world, making it the world's fifth largest insurance group based on gross worldwide premiums at 31 December 2006.
- Aviva's principal business activities are long-term savings, fund management and general insurance, with worldwide total sales of £49.2 billion and funds under management of £364 billion at 31 December 2007.
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