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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24
May 2014
CATEGORY

Corporate

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PROPOSED REVIEW DUTCH CARIBBEAN LEGISLATION ON DIRECTORS’ LIABILITY IN BANKRUPTCY

Defects detected in the annual accounts drawn up may be relevant

Earlier in 2010, a draft bill was proposed to amend the Corporate Code (Book 2 Civil Code) of Curacao, St. Maarten, Bonaire, St. Eustatius and Saba (which formerly constituted the Netherlands Antilles). Hopefully, the Bill comes into force in 2011. 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 …
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24
Nov 2010
CATEGORY

Corporate

COMMENTS No Comments

THE ANNUAL ACCOUNTS OF LARGE DUTCH CARIBBEAN COMPANIES

Stricter rules for large companies

Under Netherlands Antilles law the annual accounts of limited liability companies which do not qualify as so called large companies, need to be prepared in accordance with generally accepted standards and shall provide sufficient insight as to enable a sound judgment to be formed regarding the assets and the results and, to the extent the nature of the annual accounts so permit, regarding the solvency and liquidity of the company (article 2:116 (4) Netherlands Antilles Civil Code). This is comparable to the principles of good business practice (goed koopmansgebruik).

For large companies the legislator chose …
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09
Jun 2009
CATEGORY

Corporate

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THE FINANCIALS OF A DUTCH CARIBBEAN COMPANY

Management’s responsibility

According to Netherlands Antilles law, annually, within eight months after the company’s financial year has ended, (unless this term has been extended by the general meeting) annual statements must be drawn up by the management board and submitted to the general meeting of shareholders. The annual statements, comprising the balance sheet, profit and loss account and an explanatory statement, should be signed by all the directors.

The annual statements should be approved by the general meeting of shareholders. Said meeting can and, when this is prescribed by the articles of association, shall appoint an expert to regularly supervise the bookkeeping and to report to …
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05
Aug 2008
CATEGORY

Corporate

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