PREFERRED AND PRIORITY SHARES IN THE DUTCH CARIBBEAN
Shares with certain rights attached
In addition to ordinary shares, shares without voting rights and shares without any denomination, the law of the Netherlands Antilles provides for preferred shares (‘preferente aandelen‘) and priority shares (‘prioriteitsaandelen‘).
Preferred shares usually entitle the shareholder to a certain preference with respect to the payment of dividends. They can (too) entitle the holder to a balance upon the liquidation of the company.
Priority shares are shares that give the holder certain controlling rights. Examples: the right to appoint the managing directors or to make a binding recommendation for the appointment of such directors and the right of prior approval of certain decisions by the managing directors or the other shareholders.
Karel Frielink
Curacao-based Attorney (lawyer) / Partner
