Government shareholdings

The government is a major shareholder in a number of Dutch companies that serve the public interest. The Netherlands is cautious about investing in new government holdings.

Portfolio of government shareholdings

Besides legislation, the government can use shareholdings to influence enterprises and in the public interest. The government holds shares in the following kinds of company:

  • Monopolies, for example in the field of infrastructure, where investment costs are so high that there are unlikely to be competitors. This is the case with Dutch Railways, Schiphol Airport and the electricity grid operator TenneT.
  • Companies that provide services for the government or organisations associated with the government. Such holdings reduce the government’s costs. The Bank for Netherlands Municipalities (BNG), for example, offers local authorities low interest rates on long-term loans and credit facilities guaranteed by public authorities.

Acquisition of government shareholdings

The government is cautious about investing in new holdings. However, the need to acquire an interest in a business may arise at any time. At the end of 2008, for example, the Dutch government bought the Dutch parts of the Belgian Fortis group in order to safeguard the stability of the financial markets.

Disposal of government shareholdings

The government currently holds shares in enterprises that serve the public interest. It is therefore unlikely to dispose of them. If a shareholding satisfies the following three criteria, however, it will in principle be disposed of:

  • the government’s holding no longer helps to safeguard the public interest;
  • private ownership would benefit the business and the quality of its operations;
  • private ownership would not endanger the continuity of the service.

Active share ownership

The Netherlands is an active shareholder in state-owned companies. The government oversees the businesses’ strategies, investments and financial positions and also the remuneration policy for the directors. The companies must also observe the Corporate Governance Code  for listed companies and be transparent about their operations and their social implications.

Responsible ministry