Corporate governance: legal and tax fundamentals of structure and management

In an environment where supervision, compliance, and transparency are becoming increasingly important, corporate governance is an essential part of the tax and legal structure of large companies. Governance is not only about management and supervision, but also about how rights, responsibilities, and risks are distributed within a group and how these choices are secured from a tax and legal perspective.

A well-structured governance framework contributes to tax control, prevents internal friction, and makes the organization accountable, especially in complex or cross-border structures.

Tax implications of governance choices

The way in which a company is structured – in terms of decision-making, control, and the distribution of powers – has a direct impact on its tax position. Who is actually in charge within the group? Where are strategic decisions made? And how are those decisions documented? Governance therefore touches on issues such as:

• The tax domicile of entities within the group
• The division of roles in group financing, transfer pricing, and profit allocation
• Tax transparency towards the tax authorities or foreign authorities

Particularly for internationally operating organizations, it is important that corporate governance is not only formally correct, but also fiscally convincing, both in practice and on paper. HVK Stevens helps you to embed that governance legally and fiscally, as a solid foundation for tax compliance and risk management.

Legal structure as the basis for corporate governance

The legal structure of a company determines how governance is formally embedded. Articles of association, shareholder agreements, and management regulations lay down responsibilities and create frameworks: who decides what, within what mandate, and based on what powers?
In practice, this means:

• Legal insight into control and supervision within group structures
• Attention to liability, escalation mechanisms, and decision-making
• Alignment of Dutch and foreign legal forms in international structures

Solid legal governance provides guidance in scenarios such as mergers, restructurings, or disputes. It clarifies who is responsible for what and prevents legal structure and administrative reality from diverging.

Governance as a strategic structural element

Good governance goes beyond formal compliance. It is a strategic tool for managing risks, maintaining control over decision-making, and building trust among internal and external stakeholders. At HVK Stevens, we take an integrated approach to governance, tax and legal aspects, to ensure peace of mind, consistency, and well-considered decisions, both in the boardroom and in dealings with regulators.

In control with clear governance

A good structure supports compliance, prevents risks, and strengthens the strategic power of the company. Would you like to know more about corporate governance from a tax and legal perspective? Our experts are happy to share their knowledge.