GCV: do not include BVm in separate BVm law

The Combined Committee on Corporate Law (GCV) supports the government's decision not to create a new legal structure for the private limited company (BVm). The committee does not support incorporating the BVm regulations into a separate "BVm Act." It would be more logical to incorporate the regulations as a separate section of Book 2 of the Dutch Civil Code.

This is what the GCV writes in its advisory report on the proposal for a legal framework for private limited companies (BVs) with a social purpose. The aim of the framework is to recognize and improve the recognition of social enterprises. According to the proposal, a BVm is a BV that possesses certain characteristics guaranteed by the BVm Act.

Government intervention
According to the committee, the initial proposal does not immediately demonstrate the added value of a new legal framework. The GCV believes that recognition and acknowledgement of social entrepreneurship are valid considerations. However, they do not necessarily justify government intervention through legislation if viable alternatives exist, such as the Social Enterprise Code. The committee notes that a precise and operational definition of social enterprise or social entrepreneurship is lacking. Furthermore, the GCV questions whether the "m-status" should only be accessible to private limited companies (BVs). The committee points out the important social economic role that foundations and cooperatives also (can) fulfill.