FORECLOSING A MORTGAGE IN THE NETHERLANDS ANTILLES
Local practice may differ from island to island
Some believe that the mortgagee should always procure auction proceeds of at least 70% of the appraised free market value and that the mortgagee may never accept a bid below such amount. The question is, however, whether such a minimum bid prize is required? The answer is no. There is no authority, statutory or otherwise, for setting such minimum price.
Another question is whether foreclosure should take place on the island where the real estate is located. The answer to this question is of importance since foreclosure auctions should be held in …
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THE TERMINATION OF A LONG LEASE UNDER THE LAWS OF THE NETHERLANDS ANTILLES
Default could be a ground for early termination
Under Netherlands Antilles law of long lease, a right of long lease (10 years or longer) is forfeit by decision of the court. However, a long lease deed may provide for unilateral termination upon a default in the payment of long lease installments.
Even if the long lease is subject to termination without a court decision, the validity of a termination notice would be dependent on the grounds for such termination.
A termination notice sent without there being an actual sufficient default would be without effect, regardless of whether it is immediately contested …
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APPELLATE PROCEEDINGS IN SUMMARY RELIEF PROCEEDINGS IN THE NETHERLANDS ANTILLES AND ARUBA
Basic overview of the procedure
The appellate procedure in summary relief actions is as follows. The party appellant first files a deed of appeal with the court (a strictly formal document), followed within three weeks by a statement of grievances (“memorie van grieven”), setting forth the objections of the party appellant against the judgement.
The court then serves these documents on the respondent. The respondent may then react by a statement of answer (“memorie van antwoord”), to be filed with the court within three weeks after receipt of the statement of grievances. (The respondent may file a statement of grievances …
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THE TRANSFER OF LICENSES AND PERMITS UNDER THE LAWS OF THE NETHERLANDS ANTILLES
The request to consent may be treated as a new application
Today I received a question from a visitor to the site. He would like to know whether licenses and permits can be assigned from one party to another by a simple agreement.
Under local law, permits and licenses can only be transferred with the specific consent of the authority that issued the same, unless the permit or license explicitly allows such transfer. The authorities may treat the request to consent to the transfer of a permit as an entirely new application.
If an agreement as mentioned already exists, it …
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MAJOR DEFEAT FOR DUTCH AUTHORITY ON FINANCIAL MARKETS (AFM) IN CASE RELATED TO INSIDER TRADING
Directors of a fund manager lost job fully unnecessary
On 12 September 2006, the Dutch Trade and Industry Appeals Tribunal (‘College van Beroep voor het bedrijfsleven’), a special administrative court based in The Hague which rules on disputes in the area of social-economic administrative law, nullified several decisions of the Dutch Authority on Financial Markets (‘Autoriteit Financiële Markten’; AFM) in a case initiated by two former directors of a large fund manager.
AFM, the body supervising a.o. fund managers, in 2003 decided that both directors had to step down on the ground that they had violated insider-trading rules. However, …
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FORMER STAR PLAYER JOHAN CRUIJFF WINS INJUNCTION IN COLMAR CASE
His name and photo may no longer be used
The legendary Dutch football player Johan Cruijff – often spelled Cruyff outside the Kingdom of the Netherlands – got a court order from the Amsterdam district court against the Spain-based real estate developer Colmar (click here for source).
The court order is blocking Colmar from using Johan Cruijff’s name and photo for a golf & sports resort. Johan Cruijff was represented by Jerry Hoff of Spigthoff Attorneys & Tax Advisers.
Karel Frielink Attorney (lawyer) / Partner
VENTURE CAPITAL COMPANIES UNDER THE LAWS OF THE NETHERLANDS ANTILLES
Venture capital companies included in exemption regulation
The primary objective of the National Ordinance on the Supervision of Investment Institutions and Administrators 2002 (‘Landsverordening toezicht beleggingsinstellingen en administrateurs’) is to introduce a regime of supervision for investment institutions and administrators in the interest of an adequate operation of the financial markets and the position of the investors in those markets.
Since a large number of investment institutions, whether or not themselves established in the Netherlands Antilles, have administrators in the Netherlands Antilles, administrators are subject to supervision as well.
Venture capital companies (as defined in the Central Bank’s policy guidelines) …
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LIMITED PARTNERSHIPS UNDER THE LAWS OF THE NETHERLANDS ANTILLES
A limited partnership has no legal personality
A limited partnership (‘commanditaire vennootschap’) under the laws of the Netherlands Antilles has no legal personality but has a contractual basis. A limited partnership can be ‘established’ (concluded) pursuant to the provisions of the Commercial Code (‘Wetboek van Koophandel’) as well as the Civil Code of the Netherlands Antilles.
Limited partnerships are created for various purposes, for example, as an investment vehicle or a joint venture. A business can be jointly owned by two or more corporations (joint venture); a limited partnership is a suitable vehicle for such a venture.
The general partner …
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PLEDGING FUTURE RECEIVABLES UNDER THE LAWS OF ARUBA
The pledgor must be authorized to dispose over the receivable
Under the laws of Aruba, a right of pledge can be established on future receivables, provided that such receivables directly result from an existing legal relationship (‘rechtstreeks zullen worden verkregen uit een bestaande rechtsverhouding’).
However, the right of pledge on a future receivable will only be perfected the moment upon which such receivable comes into existence provided that, at that time, the pledgor is authorized to dispose over, or encumber such receivable (‘beschikkingsbevoegd’).
Therefore, if the pledgor has been granted suspension of payments (‘surséance van betaling’) or has been declared …
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NEW DISCLOSING OBLIGATIONS FOR INSURANCE COMPANIES TRANSACTING BUSINESS IN THE NETHERLANDS ANTILLES
Consolidated financial information must be made public
The Netherlands Antilles Central Bank (‘Bank van de Nederlandse Antillen’) decided in March 2006, that each insurance company should disclose its 2005 Consolidated Financial Highlights (“CFH”) within 2 months after June 30, 2006, and starting as of year-end 2005, disclose its CFHs within 6 months after each calendar year-end. Disclosing means to publish the CFHs in one or more newspapers, and/or on the company’s website and/or make available by means of providing copies at its offices in the Netherlands Antilles on each island of the Netherlands Antilles.
According to …
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THE NETHERLANDS ANTILLES OFFERS HIGHLY ATTRACTIVE TAX BENEFITS
Effective tax rate of 1.725%
From one of the weblog’s visitors I received this question: Is it possible to structure the revenue of a global company such that all money goes through a tax friendly environment (such as the Netherlands Antilles), prior to being distributed to the respective national corporations?
Curaçao certainly offers attractive possibilities for intermediate holding companies. This could be a fully taxed entity that, however, qualifies for the so called participation exemption under which the advantages from qualifying subsidiaries are exempt for 95%, thus creating an effective tax rate of 1.725%.
It also could be a so called …
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HEDGING THE HEDGE FUNDS?
How management can protect the corporation’s interests
According to the Dutch Economy Minister Joop Wijn, “Investment companies buy out a business, only to strip it bare like a plague of locusts“. He is referring to so-called hedge-funds who acquire enough shares in corporations to enable them to put some pressure on the management to sell whole divisions, the proceeds of which should be used for dividend payments. Those hedge-funds (there are other types too) are sometimes rather aggressive. As an investor one should carefully decide whether to invest in a Read the rest »