The Estro-decision: mismanagement and deficiencies in co-determination

The Estro decision is important (also) for practitioners of co-determination law. Indeed, the decision confirms the importance of a careful organisation of the employee participation process. In the Estro decision, the Enterprise Chamber concluded that there had been mismanagement at Estro Group at the time of the sale of Estro Group to private equity investor Providence. According to the Enterprise Chamber, this mismanagement (partly) relates to the defects in the employee participation process. This contribution considers the right of inquiry and the role of the Works Council in an inquiry procedure. It will then zoom in on the Estro decision, focusing on those aspects of the decision that are relevant to employee participation. In that context, the position of third parties in co-determination law will also be highlighted (Section 26 (5) WOR).