01. Independent directors are a must within boards of directors in the financial sector in Luxembourg. For some years now, more and more companies have appointed Luxembourg resident independent directors to ensure a permanent local representation on the board. This allow a better interconnection between them and the local service providers and public authorities, and ensures compliance with Luxembourg governance rules.
02. Increased personal liabilities for non-executive directors. The Luxembourg Tax authorities have recently attempted to sue individual non-executive directors for failure by the company to pay withholding tax on wages or VAT collected on their activities. The administration must however provide evidence of a personal breach of duty by the non-executive director.
03. Directorship: a truly organised profession The “Institut Luxembourgeois des Administrateurs (ILA)” has recently celebrated 10 years of existence. It provides professionalising training programs and certification for board members and company secretaries and promotes the values, skills and expertise of its 1,200+ members.