THE ULTIMATE CORPORATE ADVENTURE (VIII)
Pre-emption rights under Netherlands Antilles law
According to the Netherlands Antilles Corporate Code each shareholder has a pre-emption right on the issue of shares pro rata to the number of shares held by him. The purpose of the pre-emption right is to prevent the shareholder from dilution.
According to the Corporate Code there are three possibilities to limit the pre-emption rights of the shareholders:
– a limitation is provided for in the articles of the company;
– the articles may provide that a corporate body designated in the articles shall decide on whether or not a pre-emption right exists and as to the terms thereof; and
– the shareholders may agree upon a limitation in a shareholders’ agreement.
Karel Frielink
Attorney (Lawyer) / Partner
