NEW CORPORATE CODE SINT MAARTEN
Various matters not yet discussed here
As per April 1, 2014 the amended Corporate Code (Book 2 Civil Code) of St. Maarten entered into force. The prohibition of appointing Supervisory Directors besides a ‘one-tier Board’ has been deleted (Article 2:19 paragraph 1 Corporate Code). Supervisory Directors being a legal entity are allowed to a limited extent (Article 2:19 paragraph 3 Corporate Code).
For the NV and the BV the law determines who has the right to attend meetings (Article 2:129/229 Corporate Code). Unfortunately, in this connection no attention is given to the holders of depositary receipts for shares. In the …
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AMENDED SINT MAARTEN LEGISLATION ON CONFLICTING INTEREST
The new law gives shareholders more freedom
As per April 1, 2014 the amended Corporate Code (Book 2 Civil Code) of St. Maarten entered into force. Among other things, the provisions with regard to conflicting interest have been thoroughly reviewed and strongly curtailed.
The basic rule provides that the authority with regard to certain legal acts involving the legal entity and its Managing Director (e.g., agreements between the legal entity and its director) as well as lawsuits between a legal entity and its Managing Director rests with the Supervisory Board. If the company has no Supervisory Board, this authority rests …
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REVISED SINT MAARTEN LEGISLATION ON DIRECTORS’ LIABILITY IN BANKRUPTCY
Improper bookkeeping may result in liability
As per April 1, 2014 the amended Corporate Code (Book 2 Civil Code) of St. Maarten entered into force. Among other things, the provisions with regard to Managing Director’s liability have been improved.
In the event of the bankruptcy of the legal entity each Managing Director is jointly and severally liable to the estate for the deficit being the amount of the debts insofar as they cannot be settled by liquidation of the other assets if apparent improper management had been involved and it is plausible that this is a major cause of the …
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NEW SINT MAARTEN LEGISLATION ON CORPORATE REPRESENTATION
Restrictions in managing authority work through into the representative authority
As per April 1, 2014 the amended Corporate Code (Book 2 Civil Code) of St. Maarten entered into force.
Restrictions of the managing authority can arise from a by-law or a corporate agreement. Individual Managing Directors exercise their powers with due observance of the resolutions of the Management Board (Article 2:8 paragraph 2 Corporate Code). Subject to restrictions arising from the law or the Articles of Association, the legal entity is represented by the Management Board. If there are multiple Managing Directors the legal entity is represented by each Managing …
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OUTBOUND MERGER INTRODUCED IN SINT MAARTEN
Outbound mergers now possible
As per April 1, 2014 the amended Corporate Code (Book 2 Civil Code) of St. Maarten entered into force.
The possibility already existed that in connection with a merger, a foreign legal entity as the disappearing legal entity merges with a comparable legal form of the Corporate Code of St. Maarten on the condition that the law governing that foreign legal entity is not incompatible with the merger and the manner in which it is brought about (Article 2:323a BW; ‘inbound ’).
It has now also become possible that a legal entity within the sense of the …
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INQUIRY PROCEDURE INTRODUCED IN SINT MAARTEN
The Joint Court is the forum of choice for corporate disputes
As per April 1, 2014 the amended Corporate Code (Book 2 Civil Code) of St. Maarten entered into force. The new legislation introduces a so-called inquiry procedure for, amongst others, limited liability companies. The corporate inquiry procedure (a.k.a. investigation proceedings) can result in a court ordered investigation into the affairs of a corporation. In Curaçao the revised Corporate Code took effect as of January 1, 2012.
Shareholders of such a corporation (i.e. an NV or BV) may file a petition with the Joint Court of Justice of Aruba, Curacao …
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DE ENE ADVOCAAT IS DE ANDERE NIET
En het ene kantoor is het andere niet…
Je moet werken vanuit je eigen identiteit en overtuiging. Dat kunnen we vandaag lezen in een interview met Mark van Eck van Business Openers in Advocatie.nl. Een kantoor dat werkt vanuit wat dat kantoor uniek maakt, waarin het zich dus onderscheidt van andere kantoren, is meer succesvol. De kern van zijn boodschap is dat je moet werken vanuit je eigen kracht, ofwel: doe waar je goed in bent. En hij bedoelt werken, niet alleen maar praten, en al helemaal niet praten over je concurrenten, laat staan negatief. Volgens Van …
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GOVERNMENT-OWNED COMPANIES
Opposing views on political influence
Few people would argue that the rules issued by the state (government) must also be correctly and strictly observed by that same state. It cannot be well conceived that, for example, the police and Public Prosecutor’s Office (as instruments of the state) should be allowed to violate the law with impunity.
Though there may be very different opinions about the nature and the role of the state (particularly from a philosophical and jurisprudential viewpoint), here we address the question of how we should consider government-owned companies, and in particular, what level of influence the government …
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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 …
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LAW FIRMS SEE ALTERNATIVE FEE ARRANGEMENTS AS HERE TO STAY
“I don’t think the billable hour is dead, but I think it has company”
According to an article by Kim Lyons of the Pittsburgh Post-Gazette, “the billable hour has long been the mainstay of law firms and their pay structure. But in recent years, firms have had to become more creative in how they get paid, as they compete for business with ever more cost-conscious companies.
Enter the “alternative fee arrangement.” Whether it’s a flat fee, a capped fee, a blended rate or some other variety, alternative fee arrangements are giving the billable hour a run for its money.”
ADVOCATEN EN DECLARABELE UREN
Wat is daar eigenlijk mis mee?
Overal lees je dat advocatenkantoren moeten veranderen. Ze zijn te conservatief. Ze houden vast aan het verleden en zijn alles behalve innovatief. Naarmate het economisch slechter gaat wordt de roep om verandering steeds sterker.
Met name het systeem van ‘uurtje factuurtje’ moet het ontgelden. Advocaten wordt verweten dat zij tijdschrijven met een vork. Dat zij niet efficiënt werken. Dat zij te duur zijn. Het syteem zou verkeerde prikkels meebrengen, mede omdat de controle op het daadwerkelijke aantal nuttig besteedde uren niet goed mogelijk is.
Wie deze kritiek tot zich laat doordringen kan niet anders …
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US LAW GOVERNED AGREEMENTS
Curaçao and St. Maarten Courts will accept the choice of laws
One of the questions frequently asked is whether the Courts in Curaçao or St. Maarten, if an action is brought before them, will pay deference to a “choice of governing law” and/or venue provision in an agreement, in particular when the parties have chosen US Law, and a US Court to resolve their disputes.
The choice of the laws of (a particular State of) the United States of America as the laws governing an agreement is valid and binding under the laws of Curaçao/St. Maarten, and will therefore be …
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