NETHERLANDS CARIBBEAN BANKS AND REGULATORY ISSUES

A bank has less freedom than an ordinary legal entity

What would be the requirements, from a regulatory point of view, if a Netherlands Antilles bank wished to sell its entire business or a substantial part thereof? Would it require approval from the Netherlands Antilles Central Bank (de ‘Bank van de Nederlandse Antillen’)?

Generally, if the activity at a bank is characterized as some form of financial reorganization, for example, the prior approval of the Central Bank is required. The bank is also obliged to immediately inform the Central Bank in writing of any resolution for complete or partial liquidation or …
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28
Nov 2009
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HELP MAKE CURACAO ABLED

The Laura and Wagner Foundation Fundraising Evening

On Thursday December 3, 2009, the Laura and Wagner Foundation are holding a fundraising evening at the Netherlands Antilles Central Bank.

Special guests will appear via TeleConference to discuss how to make technology more abled for the disabled. Click here to read the flyer.

The Laura and Wagner Foundation is a Curacao-based non-profit NGO (non-govermental organization) whose mission is to serve as an advocate for disabled people of all ages in Curacao and the Netherlands Antilles by:

  • Lobbying for legislation that will protect the human rights and integrity …
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  • 23
    Nov 2009
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    Various

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    THE DUTCH CARIBBEAN AND ITS CIVIL LAW SYSTEM

    Abstract rules are the starting point

    The Netherlands Antilles are an autonomous part of the Kingdom of the Netherlands. The Kingdom of the Netherlands is composed of three parts: the Kingdom in Europe (popularly known as Holland, north of Belgium and west of Germany), the Netherlands Antilles (in the Caribbean Sea, north of Venezuela), and Aruba (also in the Caribbean Sea, north of Venezuela). Within the Kingdom of the Netherlands, the Netherlands Antilles are autonomous except for matters of defense and foreign affairs. Curacao is the largest of five islands that form the Netherlands Antilles. The other islands are Saba, St …
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    21
    Nov 2009
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    Legal

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    THE ARTICLES OF ASSOCIATION OF A DUTCH CARIBBEAN LEGAL ENTITY (III)

    Case law the principle of good faith

    A legal entity and all involved in its organization have a legal duty to behave towards each in accordance with the principles of reasonableness and fairness, i.e. (objective) good faith. A provision or requirement contained in a legal entity’s articles of association or by-laws, may be set aside by the Courts if, in any given circumstances, it is in breach of the principles of reasonableness and fairness. Good faith may, in a certain cases, extinguish rules prevailing between the parties or exclude their application.

    I will discuss two Dutch court cases below. It …
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    14
    Nov 2009
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    Corporate

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    THE ARTICLES OF ASSOCIATION OF A DUTCH CARIBBEAN LEGAL ENTITY (II)

    Limitations on the applicability of provisions

    As a general matter of Netherlands Antilles law, the interpretation of terms contained in legal documents, such as the articles of association and the by-laws, however only to a certain extent, inter alia subject to the intention of the parties, and the enforcement thereof, is subject to the overriding principle of “fairness and reasonableness” (in Dutch: “redelijkheid en billijkheid”) meaning that under certain circumstances a term of the articles of association or by-laws may not be applicable in so far as this term would in such circumstances be contrary to this principle.

    According to …
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    07
    Nov 2009
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    Corporate

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    THE ARTICLES OF ASSOCIATION OF A DUTCH CARIBBEAN LEGAL ENTITY (I)

    Ranging from basic to extremely complex

    Under the laws of the Netherlands Antilles, public and private limited liability companies (NVs or BVs), foundations, co-operatives, mutual insurance societies and associations are considered legal entities.

    The articles of incorporation (a.k.a. articles of association) provide the regulatory framework by which these legal entities in the Netherlands Antilles are governed and by which they must abide. Additionally regulations (‘reglementen’) are sometimes also used as a sort of ‘by-laws’.

    The articles of association are more or less comparable with the constitution of a country. Regulations can for instance be adopted by a managing board, a …
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    31
    Oct 2009
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    CARIBBEAN KIDS NEWS

    The Dutch Antillean ‘Jeugdjournaal’

    The Curacao-based Foundation Youth Into Media (Stichting Youth Into Media) is responsible for the sustainable development of a youth news program – Caribbean Kids News – on television and the internet for the Netherlands Antilles and Aruba. The first show of ‘Caribbean Kids News’ was on September 14, 2009 on TeleCuracao.

    Caribbean Kids News is a unique program for Aruba and the Netherlands Antilles (Curacao, Bonaire, St. Maarten, St. Eustatius and Saba), thus for six very special but quite different islands. For the first time a news program informs young people between …
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    26
    Oct 2009
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    Various

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    BREACH OF CONTRACT IN THE DUTCH ANTILLES (V)

    Restrictions on termination

    With regards to damages, the aim thereof is generally to restore the creditor to the position he would have been in had the contract been fulfilled. In case of breach of contract, the damages will usually be assessed by considering the situation the creditor would be in if restored to the position he would have been in had the contract been performed properly, by looking at costs incurred, wasted expenditure, any loss of profits etc.

    The Netherlands Antilles Civil Code will generally allow an injured party to claim damages based on the expectations/positive interest, i.e. the position …
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    24
    Oct 2009
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    Legal

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    BREACH OF CONTRACT IN THE DUTCH ANTILLES (IV)

    Non-performance as a response to non-performance

    Whenever a party to a contract is faced with non–performance by the other party, the party’s first reaction might well be to suspend its part of the contract. In the legal sense of the word, suspending or withholding performance may be described as both a defense and a self help remedy, which a party can use when the other party does not perform its obligations under the contract. By its very nature it is a temporary remedy. As long as one party is in breach and the other is withholding its performance, the contract …
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    17
    Oct 2009
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    Legal

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    BREACH OF CONTRACT IN THE DUTCH ANTILLES (III)

    Different cases of breach of contract

    Any question of breach starts with an inquiry into the type of obligation at hand. It is necessary to know more about the type of obligation at hand in order to determine whether a party has failed to perform that obligation. When determining whether a party has failed to perform, it should be remembered that an obligation may carry with it a degree of ‘strictness’, ranging from a firm commitment, e.g. commitment to provide annual audited financial statements, to an obligation to use reasonable care and skill to achieve certain goals.

    The Netherlands Antilles …
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    10
    Oct 2009
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    Legal

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    LECTURE ON GOOD CORPORATE GOVERNANCE

    BZSE law office on Sint Maarten celebrates merger

    On October 2, 2009 BZSE law firm (BergmanZwanikkenSnowEssed) celebrated the merger of Bergman and ZwanikkenSnowEssed law offices and the official opening of their new offices in Belair (St. Maarten) with a lecture on good corporate governance. I was the keynote speaker and delivered my presentation in the Dutch language (click here for the presentation or click here for The Daily Herald’s coverage of the event).

    I argued that government-companies should be left out of the political sphere as much as possible, so they can …
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    05
    Oct 2009
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    BREACH OF CONTRACT IN THE DUTCH ANTILLES (II)

    Entitlement to specific performance

    Under the Netherlands Antilles Civil Code the demand for specific performance is not a remedy for breach of contract in a strictly legal technical sense. In this system the entitlement to specific performance is a consequence of the duty to perform a (contractual) obligation. The contract itself, and not the breach of it, entitles the creditor to specific performance. If non–performance amounts to a breach of contract, i.e. meaning that a party does not perform though it should perform, the other party may be entitled to damages or termination of the contract.

    However, in some cases, …
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    03
    Oct 2009
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    Legal

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