Karel's Legal Blog

Respect

Van de woorden die hier op Curacao veel worden gebruikt behoren ‘integriteit’ en ‘respect’ ongetwijfeld tot de toppers. Over integriteit wil ik vandaag niets zeggen. Maar wel over het begrip ‘respect’.

Er zijn veel gevallen waarin van ons respect wordt verlangd: respect voor het leven, respect voor een taal, cultuur of mening, respect voor de medemens, respect voor de rechter, juf of meester, respect voor dieren, respect voor eigendommen van een ander, enzovoort.

Het begrip ‘respect’ heeft diverse betekenissen:

 Aanzien
 Gevoel van bewondering
 Ontzag
 Eerbied
 Waardering

Tegen de achtergrond van deze betekenissen dringt zich de vraag op hoe je zou kunnen aankijken tegen de veelvuldig gehoorde uitspraak: “Ik eis respect voor mijn volk, mijn taal en mijn cultuur!”.

De ‘eis’ doet denken aan de lijfspreuk van de Romeinse Keizer Tiberius Julius Caesar: “Oderint dum probent” (men mag mij haten, als ik maar word gerespecteerd).

Respect in deze zin lijkt niet zozeer op vrijwilligheid te zijn gebaseerd, maar min of meer te worden afgedwongen. Dat afdwingen gebeurt dan door dreigementen van iemand die macht heeft, of kracht, waardoor bij de ander angst, of ontzag of gevoelens van minderwaardigheid worden gecreëerd. Wanneer men in dit soort situaties over ‘respect’ wil praten is duidelijk dat niet sprake is van gelijkwaardigheid. Degene die respect eist, is of voelt zich dominant ten opzichte van de ander. Het respect dat in dit soort situaties wordt afgedwongen heeft geen oprecht karakter en wordt ook niet diep emotioneel gedragen.

Dit afgedwongen respect vertoont enige gelijkenissen met het aangeleerde respect. In onze opvoeding hebben wij daar allemaal wat van meegekregen, al is duidelijk dat dit soort respect tijd-, plaats- en cultuurgebonden is. Wie heeft er als kind niet geleerd om respect te hebben voor oudere mensen of voor meneer pastoor? Bij aangeleerd respect wordt als het ware geprogrammeerd gedrag vertoond, waardoor je je bijna automatisch inhoudt of beheerst tegenover de oudere medemens of meneer pastoor. Bij de ene mens wordt dit respect wel diep emotioneel gedragen en bij de ander niet.

Het respect dat ons het meeste zal aanspreken is het menselijke respect, dat min of meer spontaan ontstaat. Het wordt veelal geassocieerd met een gevoel van verbondenheid en sympathie. Het menselijke respect komt voort uit het waarnemen van de ander en het besef dat die ander een mens is even wezenlijk als wij zelf zijn, en in onze beleving wellicht zelfs meer of beter.

Er zijn nog andere manieren waarop naar het begrip ‘respect’ kan worden gekeken. Respect kan betrekking hebben op een individu dat door bepaalde eigenschappen of handelingen op onze eerbied en bewondering kan rekenen. In dat verband hoor je wel eens de uitspraak dat je respect niet kunt eisen, maar moet verdienen. Dat ‘verdienen’ zou kunnen suggereren dat het om berekenend gedrag gaat, maar dat is bepaald niet noodzakelijk. Negatief geformuleerd gaat het om respect dat niet door pure macht of fysieke kracht wordt afgedwongen, noch voortkomt uit aangeleerd gedrag. Denk bij dit soort respect aan Nelson Mandela, moeder Theresa, Ghandi en Martin Luther King. Zij kregen en krijgen respect om wat zij deden.

Op een meer abstract niveau speelt het begrip respect een rol bij de erkenning en bescherming van de menselijke waardigheid. Die waardigheid mag niet worden aangetast en geniet bescherming. Anders gezegd: de mens als mens verdient respect, ongeacht de onderlinge verschillen. Slavernij en racisme, om maar twee voorbeelden te noemen, zijn in strijd met de menselijke waardigheid. Het respect voor en de eerbiediging van de menselijke waardigheid staan er uiteraard niet aan in de weg dat straffend wordt opgetreden tegen de medemens die wetten of mensenrechten schendt: integendeel zelfs! Het recht op respect kan in dit verband niet los worden gezien van de plicht tot respect. Op dit niveau komen we alle vormen van respect tegen, van afgedwongen respect en aangeleerd respect, tot menselijk respect. En helaas ook het ontbreken van respect.

In de ideale wereld voelt ieder mens zich verbonden met alle medemensen en is solidariteit een natuurlijk gegeven. In de imperfecte wereld waarin wij leven zijn sturingsmechanismen nodig om corrigerend op te kunnen treden wanneer het gebrek aan respect leidt tot bijvoorbeeld aantasting van de menselijke waardigheid.

Respect betekent oorspronkelijk ‘omzien naar’, en geeft aan dat iemand rekening houdt met een ander. Dat is dus iets dat uit jezelf moet komen. Wie respect van anderen wil, doet er verstandig aan om zijn medemensen op een positieve manier tegemoet te treden en deze medemensen in hun waarde te laten. Hun waardigheid te respecteren. Degene die daartoe niet in staat is, begrijpt waarschijnlijk ook maar weinig van de diepere betekenis van het Kerstfeest: omkijken naar en compassie hebben met de medemens!

Ik wens iedereen een Bon Pasku, een veilige jaarwisseling en alvast een heel mooi nieuw jaar.

Karel Frielink

(20 december 2011)

Zie ook het Antilliaans Dagblad van 22 december 2011.

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VBC Lunch Lecture Held Wednesday, December 14, 2011

According to Eric Garcia (CEO Girobank) “we need to be honest and acknowledge the fact that we are simply not ready for independence. Neither financially nor politically. Instead of continuously focusing on independence, our government should deal with the many macro-economic challenges our country is facing at this moment. Curacao’s growth has been lagging behind other countries in the Caribbean. Our poor economic performance is accompanied by a high unemployment rate, particularly among the youth. However, it seems as if our politicians do not perceive the low economic growth and high unemployment rate as major problems which, if not tackled, will lead to increased poverty and crime rates.”

The macro-economic challenges, which demand serious actions from the Curacao government, are: improving our competitiveness in order to stimulate sustainable economic growth, increasing our labor productivity, strengthen our main export sectors and reforming the system of social security.

Garcia: “For that, we need politicians who have the knowledge, courage and perseverance to take the necessary measures on the short term, as unpopular as some of these measures may be.”

Click here to read the full lecture.

(15 December 2011)

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Different insurance contracts

According to the SOSIB a “life insurance agreement” is an insurance contract concerning the payment of cash benefits related to the life or death of man, and a “general insurance contract” is an insurance contract, other than a life insurance contract.

Generally, an insurance contract is understood to be an agreement whereby an insurer commits itself to the insured, against receipt of a premium, to compensate the latter for a loss, damage or loss of expected advantage which the insured could suffer as a result of an uncertain event.

There is no existing case-law or regulatory directive in Aruba offering any direct guidance as to the question whether a variable annuity constitutes an insurance product. We feel there is a strong argument that where the annuity pays out beginning at a certain date but not necessarily based on an event of loss, damage or expected disadvantage (e.g. it is not a death or disability benefit but merely an investment that pays out in the future) and where the amount of payout varies based on the value of the assets (foreign securities) purchased in the annuity, this type of variable annuity would be a security rather than an insurance product. If there is a death benefit or a payout based on an uncertain event (contingency), this argument becomes more difficult based on the aforementioned definition.

Karel Frielink
Attorney (Lawyer) / Partner

(14 December 2011)

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The Central Bank of Aruba is the regulator

The Central Bank of Aruba supervises insurers incorporated in Aruba and the branches and agencies in Aruba of insurers incorporated outside Aruba based on the State Ordinance on the Supervision of the Insurance Business (SOSIB).

The SOSIB, effective since 2001, stipulates that life and non-life insurance business must be carried out by separate legal entities. The Central Bank of Aruba shall decide whether an action or a combination of actions does or does not constitute as being engaged in the life insurance business or the general insurance business, and whether an action or a combination of actions does or does not constitute as being engaged in the insurance business from an establishment in Aruba.

Except for anti-money laundering regulations, there is no regulatory system in place with respect to insurance brokers. However, supervision of insurance brokers is included in the draft of the revised SOSIB.

Without a license from the Central Bank it is prohibited to approach any member of the public in or from Aruba regarding the direct or indirect engagement in the insurance business. If an insurer domiciled abroad intends to perform his activities in Aruba by means of a representative, it shall appoint a natural person or legal entity residing or domiciled, respectively, in Aruba (Section 1(1) State Decree Representative Insurance Companies).

Karel Frielink
Attorney (Lawyer) / Partner

(5 December 2011)

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A license is required

According to Section 4 of the Aruba State Ordinance on the Supervision of the Credit System 1998 (SOSC), no enterprise or institution established in Aruba shall pursue the business of a credit institution unless it has obtained authorization to that end from the Central Bank. No enterprise or institution established outside Aruba shall pursue the business of a credit institution through a branch in Aruba, unless it has obtained authorization from the Central Bank to do so (Section 24(1) SOSC).

A “credit institution” under the SOSC means an enterprise or institution, not being an institution established by (an Aruban) State Ordinance, whose business is to receive funds repayable on demand or subject to notice being given, and to grant credits or investments for its own account (Section 1 SOSC). Only companies with an establishment, branch-office or representative office can obtain authorization to pursue the business of a credit institution, i.e. they must have some kind of permanent presence from which the business of a credit institution is pursued.

The SOSC prohibits any natural person or legal entity (other than a registered credit institution) from approaching the public (i) in order to attract funds in the course of his or its occupation or business which funds in total or for each case of separate attraction, respectively, are below an amount to be decided by Ministerial regulation, or (ii) in order to grant credits in the course of his or its occupation or business, or (iii) in order to act as an intermediary in any way in these cases (Section 48(1) SOSC). According to a Ministerial regulation of April 16, 2009, the amount below which it is prohibited to approach the public, either directly or indirectly, for the purpose of attracting funds in the course of one’s occupation or business is Afl. 1 million (approximately US$ 560,000).

Karel Frielink
Attorney (Lawyer) / Partner

(29 November 2011)

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Papiamentu proverbs with English translation

This book is a tribute to the colorful Papiamentu language. A language spoken by only 260,000 people on three islands of the former Dutch Antilles: Bonaire, Curacao and Aruba. Although this language is only spoken in a small region, this collection of proverbs shows how by use of creativity, humor and love the Papiamentu language managed to develop and maintain itself.

In December 2010 an old, no longer available book by Father Paul Brenneker (1912-1996) came to the attention of Jacqueline Bremmers and Bart Landheer. They decided to try and preserve this heritage. After gaining permission from the heirs of Father Brenneker to use his collection of proverbs as the basis for their book, they brought together a team of experts: linguists and teachers in Papiamentu, English and Dutch. They helped to modernise and correct this current edition of “Proverbio”.

If you want to donate this book to schools on Aruba, Bonaire or Curacao click here. On Curacao, the first 65 books were donated to the Vigdis Jonckheer Mensing College on 22 November 2011 (click here for a photo impression).

Karel Frielink

(23 November 2011)

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The Curacao Civil Code provides for a simplified merger procedure

The acquisition of a business enterprise may take place through the purchase of shares (take-over), the purchase of assets and liabilities or a legal / statutory merger. The Curacao Legal Code on corporate and other legal persons contains detailed provisions for mergers of companies limited by shares (NV) and private limited companies (BV).

Basically, a legal merger entails the absorption of one legal entity by another in exchange for shares, or even without such exchange. The absorbed entity ceases to exist. A legal merger requires a notarial deed. Legal mergers may take place between legal entities like NV’s and BV’s. Under Curacao law, a cross-border legal merger is only possible if the acquiring entity is a Curacao legal entity and the law governing the foreign legal entity does not prohibit the merger.

Article 2:333 Sub 3 of the Curacao Civil Code provides for the possibility to limit the formalities. If all shareholders (who have voting rights) have voted in favor of a merger, certain formalities can be dispensed with. If they have thus voted for a legal merger, there is no need for a merger proposal containing:

1. a share converting ratio;
2. a start date as of when, and the extent to which, the shareholders of the company or companies which will cease to exist, will share in the profit of the acquiring company; and
3. a merger balance sheet of the acquiring entity.

There is no need for explanatory notes regarding the method of conversion and the result of such valuation. There is no need for a fairness opinion regarding the merger proposal, conversion rate and merger balance.

The simplified merger procedure is also applicable in the case of an ‘up-stream’ merger, i.e. a parent company acquiring (absorbing) a subsidiary, and in the case of a legal merger between affiliated companies, provided that all the shares in both companies are held by one person and the acquiring company shall not allot shares.

Karel Frielink
Attorney (lawyer) / Partner

(21 November 2011)

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The Basic Principles are considered to be a “soft-law” instrument

The Basic Priciples on the role of lawyers were adopted by the Eighth United Nations Congress on the Prevention of Crime and the Treatment of Offenders, Havana, Cuba, 27 August to 7 September 1990.

According to the preambule professional associations of lawyers have a vital role to play in upholding professional standards and ethics, protecting their members from persecution and improper restrictions and infringements, providing legal services to all in need of them, and cooperating with governmental and other institutions in furthering the ends of justice and public interest, The Basic Principles on the Role of Lawyers, which have been formulated to assist Member States in their task of promoting and ensuring the proper role of lawyers, should be respected and taken into account by Governments within the framework of their national legislation and practice and should be brought to the attention of lawyers as well as other persons, such as judges, prosecutors, members of the executive and the legislature, and the public in general.

One of the main purposes of the Basic Principles is to assist States in their task of promoting the proper role of lawyers and ensuring lawyers’ functioning without any improper interference. Rules 16 and further deal with the guarantees for the functioning of lawyers. Rule 16:

Governments shall ensure that lawyers ( a ) are able to perform all of their professional functions without intimidation, hindrance, harassment or improper interference; ( b ) are able to travel and to consult with their clients freely both within their own country and abroad; and ( c ) shall not suffer, or be threatened with, prosecution or administrative, economic or other sanctions for any action taken in accordance with recognized professional duties, standards and ethics.

Rule 23 of the Basic Principles:

Lawyers like other citizens are entitled to freedom of expression, belief, association and assembly. In particular, they shall have the right to take part in public discussion of matters concerning the law, the administration of justice and the promotion and protection of human rights and to join or form local, national or international organizations and attend their meetings, without suffering professional restrictions by reason of their lawful action or their membership in a lawful organization. In exercising these rights, lawyers shall always conduct themselves in accordance with the law and the recognized standards and ethics of the legal profession.

Information on the Basic Principles, including literature and case law, is fragmented and not easily accessible. Lawyers for Lawyers seeks to alter this and has created a database to remedy the situation. For further information click here.

Karel Frielink

(10 November 2011)

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The right form for small businesses

Until March 1, 2004 only manager managed companies were known. According to the current Curacao Civil Code, the articles of a company may provide that such company be a member managed company, which is a company without a board of directors. The shareholders (members) are then in charge of the company, including its day-to-day affairs. A member managed company is suitable for smaller companies, e.g. family businesses, with only one or a few shareholders.

If such designation is absent in the articles of a company, the company will be a manager managed company. The designation of a limited liability company as either member managed or manager-managed is important because it defines who the agents are and therefore have the apparent authority to bind the company. In a member managed company, the members have the authority to bind the company. Members possess actual authority by implication unless the actual authority is restricted in the Curacao Civil Code, the articles of association or the shareholders’ agreement. The designation of a company as a member managed company requires the express consent of all shareholders entitled to vote.

In a shareholders’ agreement, the shareholders (members) and the company may further lay down the manner in which they will manage the company, the allotment of duties in respect thereof, levels of remuneration and the manner in which decisions will be taken. Such an agreement requires the consent of all shareholders and the company. Each member has equal rights in the management and conduct of the company’s business unless otherwise provided in a shareholders’ agreement.

A member’s duty of care for the company in conducting the company’s business is limited to refraining from engaging in grossly negligent or reckless conduct, intentional misconduct, or knowingly violating the law, a standard actually used in most corporations. Liability shall be joint and several for all members, although a member shall not be liable if he can prove that the improper performance of duties is not attributable to him and that he has not been negligent in taking steps to prevent the consequences thereof.

Recognizing the informality of a member managed limited liability company, the Curacao Civil Code provides for the right of each member to inspect and, at his own expense, copy, any administrative records kept. This right is not dependent on a member’s purpose or motive.

Karel Frielink
Attorney (Lawyer) / Partner

(9 November 2011)

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Karel’s Legal Blog Nominated

Each year, LexisNexis honors a select group of blogs that set the online standard for a given industry. Karel’s Legal Blog  is one of the nominated candidates for the Top 25 International & Foreign Law Blogs of 2011, featured on the LexisNexis International & Foreign Law Community.

Karel Frielink

(1 November 2011)

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