CURACAO CREDIT INSTITUTIONS
Prudential supervision
The Curacao regulatory legislation applicable to credit institutions provides for requirements with regard to the prudential supervision in general. Such prudential supervision sees to the liquidity and solvency position of a bank without going into further detail for instance as to the safekeeping of assets or maintaining of accounts of third parties.
The Curacao legislation provides for reporting requirements that need to be submitted to the Central Bank of Curacao and St. Maarten (CBCS). However, these requirements apply only to banks regulated in Curacao.
On the basis of such reports and accounts the CBCS has the authority to …
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CURACAO FUNDS AND ADMINISTRATORS
Statutory requirements applicable to the organizational and legal structure
The National Ordinance on the Supervision of Investment Institutions and Administators (Landsverordening regelende het toezicht op beleggingsinstellingen en administrateurs; NOSIIA) provides for a regime of supervision for investment institutions and administrators with the objective of an adequate operation of the financial markets and the protection of investors in such markets.
With regard to the business operation of a local fund that operates within the scope of the NOSIIA it provides for requirements applicable to the organizational and legal structure as expressed in the fund’s constitutive documents. Such requirements address the conditions …
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SEMINAR ONDERNEMINGSRECHT
22, 23 en 24 oktober 2012
Het ondernemingsrecht is continu in beweging. Hier bij ons in Curacao, maar ook in Nederland. Boek 2 van het Burgerlijk Wetboek Curacao is op 1 januari 2012 op tal van punten gewijzigd. Wat houden deze wijzigingen precies in? Wat betekent de invoering van de Flex-BV in Nederland per 1 oktober 2012 voor Curacao?
Denk wat Curacao betreft bijvoorbeeld ook aan de invoering van een integrale regeling inzake het enqueterecht per 1 januari 2012. Het is nu mogelijk om het Hof van Justitie een of meer onderzoekers te laten benoemen om onderzoek naar (vermeend) wanbeleid …
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THE TRANSFER OF BEARER BONDS IN THE DUTCH CARIBBEAN
No deed required
Under the laws of the Dutch Caribbean (Aruba, Bonaire, Curacao, St. Maarten) transferring the title of bearer bonds (i.e. bonds which are owned by whoever is holding them, rather than having a registered owner) does not require a transfer deed. In other words: such a bond is transferred by surrendering the original document. The transfer of ownership is thus accomplished simply by the transfer of said document.
Under Dutch Caribbean international private law, the general rule is that the ‘lex rei sitae’ determines who holds legal title to movable assets (such as bearer bonds) and whether and …
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INTERNATIONAL CREDIT INSTITUTIONS IN CURACAO
Banking business abroad
Credit institutions (banks) in Curacao are subject to the National Ordinance on the Supervision of Banking and Credit Institutions 1994 (the NOSB). The NOSB makes a distinction between ‘credit institutions’ and ‘international credit institutions’. The NOSB defines a credit institution as an institution that to an important extent makes its business of:
An ‘international credit institution’ is defined as a credit …
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CIVIL PROCEEDINGS IN CURACAO
Information for foreign plaintiffs
Are there any particular issues that concern foreign plaintiffs in Curacao? If proceedings on the merits are initiated by a non-resident plaintiff, the defendant may ask the court to order that the plaintiff provide security for damages, costs and interest which it might be liable to pay as a result of the judgment in aforementioned proceedings. This ‘cautio judicatum solvi’ does not apply if there is a Convention (Treaty) on legal proceedings between Curacao and the plaintiff’s country.
Can attorney costs for legal proceedings be recovered? Generally speaking, each party has to bear its own attorney …
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INADEQUATE CAPITALIZATION OF A CURACAO COMPANY
Liability for thin-capitalization?
A shareholder is not personally liable for acts performed in the name of the company and is not liable to contribute to losses of the company in excess of the amount which he must pay to the company as contribution for his shares.
In terms of ‘piercing the corporate veil’, thin or inadequate capitalization usually means capitalization that is not in proportion to the nature of the risks the business of the corporation necessarily entails; in other words it is based on likely economic needs rather than legal requirements. In almost all jurisdictions, undercapitalization as such is …
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OLIE EN GAS IN CURACAO
Wie krijgt de opbrengst?
Of er olie en gas in de bodem onder en rond Curacao zit die op economisch interessante wijze kan worden gewonnen weten we niet. Ruzie maken over die vraag doen de politici natuurlijk wel. Stel dat er olie- en gasvoorraden zijn en dat die naar boven gehaald kunnen worden, naar wie gaat dan bij verkoop de opbrengst? Kan Nederland zich die opbrengst toe-eigenen, zoals sommige politici suggereren?
Het antwoord is nee.
De soevereiniteit van Curacao strekt zich uit tot de territoriale zee: het zeegebied dat zich uitstrekt tot maximaal 12 zeemijlen uit de basislijn (ongeveer 22 …
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DUTIES OF A MANAGING DIRECTOR OF AN NV OR BV
Acting in the best interests of the company
Although not explicitly provided for in Book 2 of the Civil Code of Curacao (“CCC”), it is considered a general rule of corporate law that the management board (a.k.a. board of directors) must act in the best interests of the company (an NV or BV) in the performance of its duties, even when acting on instructions from others (e.g. shareholders). This includes the interests of the shareholders, the employees and, according to most legal writers, the creditors of the company.
The management board also has a duty to account to the general …
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CURACAO AND ITS DEFICIT
Who do we have to thank for the conservatorship?
Recently, a lot has been written and said about the fact that Curacao is under some kind of conservatorship (or guardianship). In this case conservatorship means something like: not being allowed to take your own (financial) decisions without the approval of a supervisor. How could it have come this far?
In the run-up to the dissolution of the Netherlands Antilles a debt restructuring program was extensively discussed and negotiated. At the time, there was a debt of several billions. Eventually, the Netherlands was prepared to provide several billions, so Curacao and St …
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COURTS AND OMBUDSMAN REPORTS
Ombudsman reports are taken seriously
An Ombudsman determines whether a complaint is justified or not. If the Ombudsman finds that a complaint is justified or has merit, he may decide to try and persuade the government or government agency to change its policy or decision. This topic, however, is about an Ombudsman report resulting from a complaint primarily filed to establish whether there were sufficient grounds to initiate legal proceedings in a regular court. A lawyer and his client may decide to submit the Ombudsman report to the court, in the course of proceedings, as evidence that supports the client’s …
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OMBUDSMAN INVESTIGATION
Ombudsman beneficial to lawyers and their clients?
In several jurisdictions the law provides that, with certain exceptions, a statement made or an answer given by a person during an investigation by the Ombudsman, and a report or recommendation of the Ombudsman, is inadmissible in evidence in a court or in any other proceeding.
As far as legal proceedings in the Dutch Caribbean are concerned, our laws do not prohibit an Ombudsman’s report from being introduced into a civil lawsuit. Based on an Ombudsman’s report one may report a case to the police or the public prosecutor’s office. It should be …
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