Supreme Court voids employment contract between sole shareholder-manager and company for self-dealing evasion of social security law.
Legislator summary
AI generatedThe Supreme Court dismissed the cassation appeal regarding the invalidity of an employment contract between a sole shareholder-manager and his company. The lower court found the contract void because the manager, acting as the sole shareholder and head of the two-person board, concluded the agreement without a supervisory board or authorized proxy, creating a self-dealing situation. The court upheld this decision, ruling that such arrangements constitute an attempt to evade social security legislation by conflating management and employee roles.
Legislator headnote
AI generatedArt. 203 KH; Art. 58 § 1 KC: An employment contract concluded by a sole shareholder-manager with the company they control is void as it constitutes an attempt to evade social security law through self-dealing and conflicting roles.