For board members of Dutch stichtingen: why board members can be personally liable and how a directors' liability insurance protects them.
Moral Fabric recommendation
Board members of a stichting can be held personally liable for improper management. Since the Wet bestuur en toezicht rechtspersonen (WBTR) took effect on 1 July 2021, a curator can hold every board member jointly liable for the shortfall in a bankruptcy if improper management was an important cause, and this now applies to non-commercial stichtingen as well (see Het Notarieel: Wet bestuur en toezicht rechtspersonen ). Once the stichting employs people, the board also carries employer obligations such as paying wage taxes on time.
What it covers
A directors' liability insurance covers legal defence costs and claims against current, former and future board members. Moral Fabric recommends it as soon as the stichting has employees or manages significant funds.