WHAT IS THE EFFECT OF ATTACHING SHARES UNDER THE LAWS OF THE NETHERLANDS ANTILLES?
Relative effect only
A conservatory attachment (or arrest) serves the purpose of trying to prevent a debtor from frustrating recovery by his creditor, for example, by alienating, removing, or hiding assets. However, under Netherlands Antilles law an attachment has a relative effect only: any subsequent transfer would be void in relation to the party that levied the attachment only.
The attachment, however, does not generally prevent a transfer of the shares. If the debtor would decide to transfer the shares regardless of the attachment, he could in principle be held liable on the basis of tort (for what it is worth).
The attachment does not affect the debtor’s ability to use the voting rights attached to his shares.
Karel Frielink
Attorney (lawyer) / Partner
