Month: August 2006

Effective tax rate of 1.725% From one of the weblog’s visitors I received this question: Is it possible to structure the revenue of a global company such that all money goes through a tax friendly environment (such as the Netherlands Antilles), prior to being distributed to the respective national corporations? Curaçao certainly offers attractive possibilities… Continue reading THE NETHERLANDS ANTILLES OFFERS HIGHLY ATTRACTIVE TAX BENEFITS

How management can protect the corporation’s interests According to the Dutch Economy Minister Joop Wijn, “Investment companies buy out a business, only to strip it bare like a plague of locusts“. He is referring to so-called hedge-funds who acquire enough shares in corporations to enable them to put some pressure on the management to sell… Continue reading HEDGING THE HEDGE FUNDS?

A prospectus may not be misleading A closed-end investment fund is a fund that does not redeem its own shares. A semi open-end or semi closed-end fund may redeem shares, yet it is not obliged to do so or does not do so unrestrictedly. A so-called open-end investment fund is obliged under the conditions set… Continue reading THE PROSPECTUS OF A NETHERLANDS ANTILLES BASED INVESTMENT FUND

Claim of post-bankruptcy creditor denied The case: Instead of waiting for final judgments in several validation proceedings, the trustees in bankruptcy entered in a settlement agreement with several creditors. In case the agreement is left out of consideration, the winding up of the bankrupt estate will result in a surplus of some millions of guilders.… Continue reading JOINT COURT OF APPEAL OF THE NETHERLANDS ANTILLES AND ARUBA RULES ON BANKRUPTCY ISSUES

The trustee must also look after the bankrupt’s legitimate interests In general, the main function of the bankruptcy trustee is to realize and distribute the assets of the bankrupt person or company. The aim is to enable the creditors of the bankrupt estate to receive as large a share of the proceeds of the assets… Continue reading DUTIES OF A BANKUPTCY TRUSTEE IN THE NETHERLANDS ANTILLES

The more you invest yourself, the easier you get financing If you have plenty of assets, you just walk into a bank and ask them to lend you the money you need (debt financing). As long as these assets are marketable, getting the loan won’t be too difficult. However, there are alternatives, e.g. private investors or… Continue reading THOUGHTS ON FINANCING YOUR PRIVATE COMPANY

No specific restrictions For Netherlands Antilles tax purposes and according to the General Ordinance on National Taxes (this law contains general rules applicable to the income tax, wage tax, profit tax, ship registration tax, conveyance tax, inheritance and transfer tax, ground tax, turnover tax (SXM) and sales tax) there are some statutory requirements for keeping… Continue reading WHERE TO KEEP TAX DATA UNDER THE LAWS OF THE NETHERLANDS ANTILLES?

Customer data must be kept confidential Bank secrecy rules protect the confidentiality of customer data. Customer data is any information relating to an identified or identifiable customer. Bank secrecy rules apply to all information relating to any banks business or information which the bank obtains in the course of business or contractual relationship. Netherlands Antilles… Continue reading CUSTOMER DATA AND BANK SECRECY RULES IN THE NETHERLANDS ANTILLES

Liability of directors could be an issue Can directors of a company be held liable for inappropriate or fraudulent bookkeeping without being involved in this themselves and without having any knowledge about this? The reasoning would then be, that such directors have committed a tort towards those who have incurred damages by relying upon the… Continue reading LIABILITY FOR FRAUDULENT ACCOUNTS UNDER THE LAWS OF THE NETHERLANDS ANTILLES

The Central Bank may apply for emergency measures The Ordinance on the Supervision of Banking and Credit Institutions 1994 (the “Ordinance”) contains two important definitions: “credit institution“: an undertaking or entity which as an important part of its business obtains moneys, whether repayable directly or in due course, whether in the form of savings or… Continue reading EMERGENCY MEASURES IN RESPECT OF BANKS IN THE NETHERLANDS ANTILLES

Replacing a trustee requires justification The Netherlands Antilles or Aruban bankruptcy judge may at any time after having heard or after having properly summoned the bankruptcy trustee (‘curator’), dismiss the trustee and replace him by one or more other trustees. This can be done at the request of the debtor, the trustee himself, another trustee,… Continue reading REPLACING A BANKRUPTCY TRUSTEE IN THE NETHERLANDS ANTILLES OR ARUBA

Leading Dutch business journal “NRC Handelsblad” article on AESX and PPDAQ 1st August 2006 *Start capital on an Aruban exchange market There is a capital market revolution going on in Aruba. Small start up companies can now raise funds at the electronic stock exchange platform AESX. The scarcely lit law office of Andin Bikker is… Continue reading PRIVATE PLACEMENT EXCHANGE ON ARUBA