ELECTRONIC MONEY INSTITUTIONS IN ARUBA
A license is required
The European Central Bank defines e-money as follows (a non-legal definition): “E-money can be defined as any amount of monetary value represented by a claim issued on a prepaid basis, stored in an electronic medium (for example, a card or computer) and accepted as a means of payment by undertakings other than the issuer, predominantly for small-value transactions (for example, the settlement of modest transactions over the Internet and of parking or telephone charges and payment for public transport services).” (Electronic Money Institutions. Current trends, regulatory issues and future prospects. Legal Working Paper Series, No. 7/2008).
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 …
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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 …
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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) …
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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 …
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DE FUN FACTOR
Over plezier en vertrouwen
Geen enkele cliënt zal zijn advocaat willen betalen voor het maken van grappen. En als advocaat hoef je ook helemaal niet grappig te zijn. En als een zaak ernstig van aard is dan mag je zelfs niet grappig zijn. Maar omdat zaken doorgaans meer dan enkele uren of dagen duren, is een goede band tussen een advocaat en zijn cliënt onontbeerlijk.
Natuurlijk, een cliënt kiest een advocaat waarin hij vertrouwen heeft. Een verdwaald geval daargelaten, lijkt mij dat een open deur. Wat ook ‘open’ hoort te zijn is de communicatie tussen een advocaat en zijn cliënt. …
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ANTI-MONEY LAUNDERING LAWS IN CURACAO
Money laundering is prohibited
Title XXXI of the Penal Code of Curaçao basically prohibits any type of money laundering.
The National Ordinance on the Reporting of Unusual Transactions (NORUT) obliges service providers acting in the course of a business or profession, to report unusual transactions.
The National Ordinance on Identification of clients when Rendering Services (NOIS) requires any service provider who is acting in the course of a profession or business, to establish the identity of a customer before providing any “financial” service.
Generally, these Ordinances apply when services are conducted in or from Curaçao. If a foreign financial institution does …
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IMPACT OF THE LIABILITY TO THE DIRECTOR OF THE DIRECTOR (II)
2nd degree director as director of a foreign corporate director
It appears from the 2011 ruling referred to by the Supreme Court that Section 2:11 of the Dutch Civil Code is applicable to the joint and several liability of a director of a Dutch legal entity being a director of another Dutch legal entity. The Supreme Court confirmed this doctrine again in clear wording in its decision of 21 June 2013.
The conclusion is as follows:
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IMPACT OF THE LIABILITY TO THE DIRECTOR OF THE DIRECTOR (I)
Liability of the 2nd degree director
Under Section 2:17 subsection 1 of the Curaçao Civil Code, the liability of a legal entity as a director of another legal entity (the direct or 1st degree director) also rests jointly and severally on each person who at the time this liability arose for the legal entity was its director (the indirect or 2nd degree director). It applies to this indirect director as it applies to the direct director that he will not be liable if he can prove that he cannot be blamed for the improper performance of duties, also considering his …
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DIRECTORS’ LIABILITY IN CURACAO
Quasi-director may be held liable too
The members of the board of managing directors are personally and severally liable towards the limited liability company (NV or BV) for any loss caused by the improper performance of duties. Each member of the board who proves that he cannot be blamed for such improper performance and that the activities concerned fall outside the scope of activities addressed to him, and that he has not been negligent in taking steps to avert the related consequences, is not liable (Section 2:14 subsection 4 Curaçao Civil Code; “CCC”). Therefore, a division of tasks among such …
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FRIS EN FRUITIG
Over het verkopen van dorstlessers en advocaten
Waarom koopt iemand frisdrank A wel, frisdrank B niet en frisdrank C af en toe? Een kwestie van smaak? Zeker. Een kwestie van prijs? Dat ook. Een kwestie van kwaliteit (en de hoeveelheid of juist het ontbreken van schadelijke ingrediënten)? Niet zelden. Een kwestie van gemoedstoestand? Zal ongetwijfeld ook een rol spelen. Het gevoel dat iemand bij een product heeft? Ook dat lijkt mij een factor van betekenis.
Bewust of onbewust verdisconteren mensen de diverse aspecten die zij van belang vinden in hun aankoopbeslissing. Die afweging kan ook door iemand anders gemaakt worden, …
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ASSET PROTECTION IN CURACAO
Curaçao: a jurisdiction not to be missed
A Curaçao private foundation or a trust is often used for asset protection and privacy purposes. The Curaçao private foundation and the Curaçao trust must be set up by a notarial deed executed before a civil law notary in Curaçao. Both the private foundation and the trust are a very flexible solution for asset protection and privacy purposes. A private foundation, for instance, can be easily implemented in international holding structures through Curaçao and is very suitable for family asset protection. By means of a letter of wishes or provisions in the articles …
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