Share Council blog

STAK and Legal Entities

Written by Quintus Willemse | Dec 7, 2023 3:00:00 PM

An STAK (Foundation Administrative Office) is a legal entity commonly utilized as a tool across various legal structures to achieve diverse objectives. This entity holds a wide range of applications and can be advantageous for various organizations, ranging from private limited companies (BVs) to public limited companies (NVs), and even cooperatives. Let's delve deeper into what an STAK can mean for different legal entities:

For the BV (Besloten Vennootschap - Private Limited Company)

An STAK can hold shares on behalf of BV shareholders, offering protection of their interests, especially when shareholders prefer not to be directly visible in the shareholders' registry.

By placing shares within an STAK, shareholders can retain voting rights and dividend entitlements, while the actual ownership of the shares resides with the STAK.

For the NV (Naamloze Vennootschap - Public Limited Company)

In NVs, an STAK can safeguard control, crucial in scenarios where certain shareholders aim to prevent others from gaining excessive influence.

By housing shares in an STAK, the NV can retain a degree of flexibility in managing shareholder interests and voting rights, beneficial in complex shareholder structures.

For Cooperatives

For cooperatives, an STAK can assist in managing voting rights and decision-making, serving as a tool to safeguard member interests and govern the cooperative's structure.

An STAK can aid a cooperative in ensuring continuity and stability by overseeing share and voting rights, particularly during shifts in member-shareholder compositions.

Key Considerations

Maintaining a clear governance structure within an STAK is crucial to ensure transparency, define decision-making processes, and ensure accountability.

Establishing and managing an STAK involves legal and tax aspects that require careful attention to comply with all legal requirements.

Conclusion

An STAK can serve as a versatile instrument across diverse legal entities, its applications contingent upon specific organizational needs and goals. It can be a valuable structure for protecting interests, managing voting rights, and ensuring stability within different organizations. However, setting up and managing an STAK requires professional advice and attention to legal and financial aspects to effectively operate within the legal framework. This is where Share Council comes in, supporting your company in setting up an STAK. Request a no-obligation meeting with our CEO to explore how we can assist your business.