WHY INVESTMENT FUNDS ARE ESTABLISHED ON CURACAO, THE NETHERLANDS ANTILLES
Here are a few reasons out of many A favorable tax regime is one reason for establishing a fund on Curacao, the Netherlands Antilles. Also, Curacao has become very attractive since under new corporate law a private limited liability company (‘besloten vennootschap’) can be established very quickly and very flexible. Virtually everything is possible with this new legal entity.
Investor considerations often drive the fund location. The Netherlands Antilles are a so-called associate member of the European Union, which makes a Netherlands Antilles fund attractive to European investors. The Netherlands Antilles are also a member of the OECD. The …
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MORATORIUM OF PAYMENTS UNDER THE LAWS OF THE NETHERLANDS ANTILLES AND ARUBA
Only the debtor may ask for a moratorium A moratorium of payments (surseance van betaling) is a court-ordered general suspension of a debtor’s obligations; its purpose is to avoid the debtor’s bankruptcy in the interest of both the debtor and his creditors. The moratorium is to a certain extent comparable with the US Chapter 11.
A moratorium is available only at the request of the debtor, on the ground that he will be unable to continue payments. The purpose of a moratorium is to give the debtor an opportunity for recovery; it may lead to a normal resumption of …
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SAINT NICHOLAS IS A BUSINESSMAN
What are his choices for the establishment of a business venture?
Today, 5 December 2005, in the Netherlands, the Netherlands Antilles, Aruba and the northern part of Belgium we celebrate the birthday of ‘Sinterklaas’ (Saint Nicholas); no not Santa Claus? he has to wait another three weeks. Sinterklaas did actually exist; he was the archbishop of Myra (see http://www.thehollandring.com/sinterklaas.shtml).
On 5 December 2005 we find our shoes full of candy and toys. Although it’s Sinterklaas’ birthday, he himself gives presents to children (and to many adults too). The store registers are ringing heavily. Therefore, he must be a …
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NEW NETHERLANDS ANTILLES TIME-SHARE LEGISLATION
Time-share owners will be better protected Time-share means you are buying the right to spend time – usually one or two weeks once every year – in a particular property. On December 1, 2005, the new act on time-share rights became effective in the Netherlands Antilles (St. Maarten, Curacao, Bonaire, Saba and St. Eustatius). The Act contains specific provisions in respect of consumer protection, i.e. protection of time-share owners.
How does the Act protect buyers? All time-share agreements should contain basic minimum information. If you’re buying time-share you have a right to a five day cooling-off period from the …
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EMERGENCY MEASURES UNDER THE LAWS OF THE NETHERLANDS ANTILLES
The moratorium rules are not applicable to banks and insurance companies
The Netherlands Antilles Bankruptcy Decree 1931 is applicable to all corporations, associations, foundations, partnerships and individuals; insurance companies and banks (including Netherlands Antilles Branches of foreign banks) not excluded.
However, the provisions in respect of moratorium (surséance van betaling) are not applicable in respect of insurance companies and credit institutions. Instead, the Insurance Supervision Ordinance and the Banking Supervision Ordinance provide that the Netherlands Antilles Central Bank (Bank van de Nederlandse Antillen) may ask a Netherlands Antilles court for the application of so-called emergency measures to respectively an insurance …
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CREDIT DEFAULT SWAPS UNDER THE LAWS OF THE NETHERLANDS ANTILLES
A method to reduce a credit risk
A credit default swap is an agreement between two parties which allows the transfer of a third party credit risk from one party (the lender) to the other. The lender, for example a bank, faces a credit risk if it borrows money to a client and it may want to ‘short’ this risk. If the lender wants to reduce the risk, it may enter into a credit default swap. It’s counterparty then takes on the default risk of the borrower, similar to the risk of a direct loan to the borrower. The parties …
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NO DERIVATIVE SUIT POSSIBLE UNDER THE LAWS OF THE NETHERLANDS ANTILLES
Derivative suits may help to improve responsible management
A derivative suit is a civil lawsuit filed by shareholders on behalf of a corporation (they sue on the basis of a representative capacity) asserting rights of the corporation in the absence of corporate action to protect those rights. Derivative suits are an interesting tool in the event the shareholders want the corporation to initiate legal proceedings against members of the management and/or supervisory board.
I advocate the incorporation of the concept of derivative suit in the Netherlands Antilles Corporate Code. Current and future members of the management board almost always have …
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INTERNET SERVICE PROVIDERS AND CONFIDENTIALITY UNDER THE LAWS OF THE NETHERLANDS ANTILLES
Is an ISP under an obligation to reveal customer information when the customer misuses the internet?
Internet service providers in general shall preserve the confidentiality of the proprietary information and communications of their customers and prohibit the improper access to or use of such information and communications. However, it goes without saying that an ISP must comply at all times with applicable legislation.
Under Netherlands Antilles law, an internet service provider in principle is not liable for the contents of commercial communication or other information dispatched or stored through its intermediary by electronic means. But this being said, if one …
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LAWYERS, MISCONDUCT AND INTEGRITY
It all comes down to integrity We all make mistakes. Period. However, there is a difference between making mistakes and intentionally doing something wrong. Many belief that it is a lawyer’s second nature doing things wrong on purpose, especially lying and violating the truth. I have met such lawyers (who hasn’t?), but also many more who have high standards of integrity.
Lawyers / attorneys often must face misperceptions and negative images of their activities communicated through the media. In truth, allegations of ‘misconduct’ are rarely substantiated and are confused with occasional ‘error’ which does not involve professional misconduct or …
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ON-LINE GAMING UNDER THE LAWS OF THE NETHERLANDS ANTILLES
On-line gaming is a legitimate business
On-line gaming is a legitimate business activity in the Netherlands Antilles, especially Curaçao, provided the e-gaming company has obtained the proper license. The Netherlands Antilles (master) gaming licenses are based on the National Ordinance on Offshore Hazard Games.
There are two formats to be licensed:
a) having a master license or
b) having a sub-license.
A master license licenses the (e-)gaming company itself, and in addition opens the possibility to sub-license third parties subject to the responsibility and covenants under the master license. A sub-license – under a master license – offers equal possibilities …
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COMPUTER VIRUSES SENT TO PC OWNERS IN THE NETHERLANDS ANTILLES AND ARUBA
Infecting someone else his computer is punishable and illegal
The day before yesterday, I received an e-mail suggesting that my IP-address has been logged on more than 30 illegal websites. The sender: mail@cia.gov. A zip-file was attached and the sender wanted me to answer his questions. And guess what I did not open the file.
On the very same day, I read an article on www.cnn.com: FBI warns of e-mail scam. The Federal Bureau of Investigation issued an alert about a scam involving unsolicited e-mails, purportedly sent by the FBI, that tell computer users that their Internet …
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DO YOU WANT YOUR ATTORNEY TO SAY ‘I DON’T KNOW’?
A lesson to learn from William Swanson
Today I received ‘Swanson’s (Un)Written Rules of Management‘. William Swanson is Raytheon’s Chairman and CEO. In the preface of this little book, he explains that listening has always been very important to him; it should be important to lawyers / attorneys, too!
In this book, Swanson gives 25 straightforward directives. Only one rule will be mentioned here, which is Rule number 1: Learn to say ‘I don’t know.‘; if used when appropriate, it will be used often.
If people meet with their lawyer / attorney, many of them will notice that he (or …
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