Juridisk Institut

Mette Neville

Insights on Employee Representation on Danish Boards

Publikation: Bog/antologi/afhandling/rapportRapportForskning

Since 1973 the Danish Companies Act has contained rules on codetermination. Employees in public or private limited companies with at least 35 employees in average over a 3-year period have a right but not a duty to appoint representatives on board of directors. In 1973 the rules were seen as an expansion of the existing collaboration in the labor market. In contrast to other labor market rules, such as the rules on works committees, the provisions not only provided the employees with a right of consultation but also a direct influence on the overall strategic management of the firm. The present report shows an interesting result: even though the codetermination rules give the employees some direct influence on the strategic orientation of their workplace, the employees to a large extent do not exercise their codetermination rights. As a matter of fact only around 25% of all A/S subject to codetermination had at least one employee representative on the board, as of 2009. The share of ApS with employee representatives on the board is even smaller, around 22%. If we look at codetermination from a geographical and industrial angel, there are a few regions that somehow stand out with regards to employee representation, but an even stronger variation in the actual implementation of codetermination rights is observed across the industries. The question of why we see big variations has not been investigated in this study, and is left to further research.
Rekvirerende organErhvervsstyrelsen
StatusUdgivet - 2015

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