The Enterprise Chamber of the Amsterdam Court of Appeal has commissioned an investigation into the policy and state of affairs at the Funda housing site. That is the provisional outcome of the dispute between major shareholder NVM Holding and Vereniging Fundabelang, which had filed a case to change Funda’s management structure. In the Thursday published verdict the judge ruled that NVM Holding had not been able to make decisions about the future of the site for “five years”.
Also read: The arguing at Funda is not over yet
According to the Enterprise Chamber, NVM Holding is unable to make decisions about the shareholder structure, the position of Funda and a possible buy-out arrangement for the other depositary receipt holders. NVM has 90 percent of the voting rights within the company, the remaining 10 percent is for holders of depositary receipts. Of that group, 89 are represented by the Vereniging Fundabelang.
The uncertainty about the future is not in the interest of Funda and its company, the judge said. The housing site is not clear about the strategy to be followed for the coming years, which is necessary to be able to respond to the rapidly changing market. Employees are also uncertain about the future of the company.
Strategic investor
Because the board and the supervisory board of Funda have sided with the Vereniging Fundabelang, the relations between NVM and the two parties have also come under pressure. They believe that they must be able to independently determine the company’s strategy in order to remain successful. This could be the case if a strategic investor acquires a minority interest in Funda. The certificate holders are open to a buy-out arrangement at the fair value of their certificates.
By initiating an investigation into the state of affairs, the Enterprise Chamber hopes that the parties involved will ‘reflect on their own position and act’, which in the favorable case will lead to ‘the restoration of healthy relationships’. The results of the investigation should show whether ‘further intervention’ by the Enterprise Chamber is necessary. A request from the Vereniging Fundabelang to also investigate a third shareholder was rejected by the court.