THE INCORPORATION OF A CURACAO LIMITED LIABILITY COMPANY
Incorporating an NV or BV is not a hassle
The act on corporate law (Book 2 Curaçao Civil Code) governs the NV (‘public limited liability company’) and BV (‘private limited liability company’). These companies can be used for group finance or holding activities, (international) joint-ventures, funds, structured finance, as a Curaçao Trust and for “plain-vanilla” (local) activities.
A notarial deed is required for the formation of an NV or BV and for any amendment to articles of association (a.k.a. articles of incorporation). Formation can however, be very quick (within one or two days if necessary) and does not require many …
Read the rest »
CONSULTATIE GRENSOVERSCHRIJDENDE OMZETTING
Voorstel wetswijziging in Nederland
Vandaag is in Nederland ter consultatie een Voorontwerp grensoverschrijdende omzetting kapitaalvennootschappen gepresenteerd.
Het ambtelijk voorontwerp bevat een regeling waarmee voorwaarden worden gesteld voordat een grensoverschrijdende omzetting van een naamloze of besloten vennootschap in een buitenlandse kapitaalvennootschap kan plaatsvinden (outbound) en omgekeerd (inbound). Voorts bevat het voorontwerp een wijziging van de regeling voor werknemersmedezeggenschap in geval van grensoverschrijdende fusies van kapitaalvennootschappen.
Een grensoverschrijdende omzetting kan de belangen van crediteuren, (minderheids-) aandeelhouders en werknemers van de om te zetten NV of BV schaden. Om deze belangen te beschermen, bevat de regeling voorwaarden voordat een grensoverschrijdende …
Read the rest »
GRENSOVERSCHRIJDENDE FUSIE EN OMZETTING SINDS 10-10-10
Publicatie in het Caribisch Juristenblad
In het Caribisch Juristenblad (2013/4, p. 3-9) verscheen mijn artikel Grensoverschrijdende fusie en omzetting na 10-10-’10.
De staatkundige herziening binnen het Koninkrijk der Nederlanden die op 10 oktober 2010 zijn beslag heeft gekregen, is ook van belang voor de grensoverschrijdende fusie en de grensoverschrijdende omzetting van kapitaalvennootschappen (NV’s en BV’s). De bestaande regelgeving maakt fusie en omzetting binnen het Koninkrijk nodeloos ingewikkeld. Daarom wordt voor harmonisatie gepleit.
Karel Frielink Attorney (Lawyer) / Partner
(30 January 2014)
.
INDEPENDENT SUPERVISORY BOARD IN ST. MAARTEN
Should be mandatory for government-owned entities
Under the laws of St. Maarten, the main task of a board of supervisory directors is to supervise the board of managing directors of a limited liability company (NV or BV).
The St. Maarten Corporate Code provides for two different kinds of boards of supervisory directors, a “regular” board of supervisory directors and the so-called “independent” board of supervisory directors (Section 2:139 Civil Code). Within this context the word independent means that the supervisory directors are independent of the shareholders, interest groups (“belangengroepen”) and to a certain extent from the shareholders’ meeting.
An independent …
Read the rest »
LIFTING THE CORPORATE VEIL IN ARUBA
Only under exceptional circumstances
In terms of “piercing the corporate veil” and shareholders’ liability, the laws of the Netherlands and Aruba are nearly identical. As far as a tort matter concerns the laws of Aruba, Dutch case-law and Dutch legal literature should be considered as well.
In exceptional cases shareholders of an Aruba company can be liable for the company’s debts and obligations. Generally, two grounds for such liability are mentioned: a tort (onrechtmatige daad) committed by the shareholder and an “alter ego” situation (vereenzelviging) as regards the shareholder and his company. Under Aruba law, both can be categorized under …
Read the rest »
AMERICA MOVIL ABANDONS BID FOR KPN
Must KPN remain in Dutch hands?
On NU.nl I read the report that the Mexican telecom company América Móvil, owned by the billionaire Carlos Slim, is abandoning a bid for the Dutch company KPN. The report reads: “The company refers in a statement to the Mexican stock exchange authorities to the barrier that the Stichting Preferente Aandelen B KPN [Foundation for KPN B Preference Shares] has thrown up and to the discussions it has held with the Dutch company. These have shown according to América Móvil that it would be impossible to obtain more than 50 percent of the KPN …
Read the rest »
AMERICA MOVIL ZIET AF VAN BOD OP KPN
Moet KPN in Nederlandse handen blijven?
Op NU.nl las ik het bericht dat het Mexicaanse telecombedrijf América Móvil, het concern van de miljardair Carlos Slim, afziet van een bod op het Nederlandse bedrijf KPN. In het bericht staat: “Het bedrijf wijst in een melding aan de Mexicaanse beursautoriteiten op de beschermingswal die de Stichting Preferente Aandelen B KPN heeft opgeworpen en op de gesprekken die met het Nederlandse bedrijf zijn gevoerd. Daaruit is volgens América Móvil gebleken dat het onmogelijk zal zijn om meer dan 50 procent van de stemmen bij KPN in handen te krijgen. Daardoor heeft het volgens …
Read the rest »
THE ARTICLES OF ASSOCIATION OF A CURAÇAO COMPANY (III)
Controlling minority?
Such a situation (i.e. example 2) is possibly less desirable from the company’s perspective, certainly where the more essential decision-making is concerned. Although decisions should be taken on the basis of a discussion of content and it will not always be possible to predict how the meeting of shareholders will vote, the possibility of ‘accidental’ majorities (whereby a minority shareholder nevertheless has the majority through the absence of others at the meeting of shareholders) leads to less predictability, or at least to greater uncertainty.
If a company has, for example, one 30% shareholder and the remaining 70 shareholders …
Read the rest »
THE ARTICLES OF ASSOCIATION OF A CURAÇAO COMPANY (II)
Articles determine the nature of the company
A company’s articles of association determine the nature of the company (take for example the description of the purpose), regulate the internal competences (e.g. dismissal and appointment), limit the powers (e.g. decisions requiring approval), determine the internal responsibilities (e.g. drawing up the annual report and accounts), regulate the external powers (who represents the company in law), determine the method of decision-making, etc. As indicated above: the articles of association are somewhat comparable with the constitution or the state regulations of a country. The articles of association are therefore essential to the proper functioning …
Read the rest »
THE ARTICLES OF ASSOCIATION OF A CURAÇAO COMPANY (I)
Comparable with a constitution
The articles of association of a Curaçao company (a public [NV] or private [BV] limited liability company) are somewhat comparable with a constitution or state regulations: the articles of association comprise – like the law, but also additionally to the law and, where permitted, unlike the law – the rules of play (rights, obligations and powers) to which all the organs of the company (managing board, supervisory board, shareholders’ meeting) and the members of those organs must adhere or on which they can rely.
The law of Curaçao does not prescribe that a special (or qualified) …
Read the rest »
VALIDLY REPRESENTING A CURACAO COMPANY
Extract and Articles are of importance
Limited liability companies like the Curaçao NV or BV are legal entities. Whether or not a managing director has the authority to validly represent a company can be derived from the extract from the Trade Register of the Chamber of Commerce of Curaçao together with the articles of association of the company.
However, it could be the case that the company has further regulations from which representation limitations follow. This should be assessed on a case by case basis.
A counterparty may rely on a written statement from the board of managing directors or …
Read the rest »
INSOLVENCY AND LIABILITY
Not (or late) filing for bankruptcy
In Curaçao, there is no statutory obligation for managing directors of a company to file for the bankruptcy of the corporation. Therefore, managing directors are not responsible to the creditors for damages sustained by them as a result of any ‘late’ filing for bankruptcy. There is no such obligation for shareholders of a corporation either.
However, creditors of the corporation may hold a director liable on the basis of tort if he entered into a transaction on behalf of the corporation while he knew, or should reasonably have known, that the corporation would not …
Read the rest »