GOVERNMENT-OWNED COMPANIES

Opposing views on political influence

Few people would argue that the rules issued by the state (government) must also be correctly and strictly observed by that same state. It cannot be well conceived that, for example, the police and Public Prosecutor’s Office (as instruments of the state) should be allowed to violate the law with impunity.

Though there may be very different opinions about the nature and the role of the state (particularly from a philosophical and jurisprudential viewpoint), here we address the question of how we should consider government-owned companies, and in particular, what level of influence the government …
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17
Feb 2014
CATEGORY

Corporate

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THE INCORPORATION OF A CURACAO LIMITED LIABILITY COMPANY

Incorporating an NV or BV is not a hassle

The act on corporate law (Book 2 Curaçao Civil Code) governs the NV (‘public limited liability company’) and BV (‘private limited liability company’). These companies can be used for group finance or holding activities, (international) joint-ventures, funds, structured finance, as a Curaçao Trust and for “plain-vanilla” (local) activities.

A notarial deed is required for the formation of an NV or BV and for any amendment to articles of association (a.k.a. articles of incorporation). Formation can however, be very quick (within one or two days if necessary) and does not require many …
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14
Feb 2014
CATEGORY

Corporate

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US LAW GOVERNED AGREEMENTS

Curaçao and St. Maarten Courts will accept the choice of laws

One of the questions frequently asked is whether the Courts in Curaçao or St. Maarten, if an action is brought before them, will pay deference to a “choice of governing law” and/or venue provision in an agreement, in particular when the parties have chosen US Law, and a US Court to resolve their disputes.

The choice of the laws of (a particular State of) the United States of America as the laws governing an agreement is valid and binding under the laws of Curaçao/St. Maarten, and will therefore be …
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21
Nov 2013
CATEGORY

Legal

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IMPACT OF THE LIABILITY TO THE DIRECTOR OF THE DIRECTOR (I)

Liability of the 2nd degree director

Under Section 2:17 subsection 1 of the Curaçao Civil Code, the liability of a legal entity as a director of another legal entity (the direct or 1st degree director) also rests jointly and severally on each person who at the time this liability arose for the legal entity was its director (the indirect or 2nd degree director). It applies to this indirect director as it applies to the direct director that he will not be liable if he can prove that he cannot be blamed for the improper performance of duties, also considering his …
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04
Sep 2013
CATEGORY

Corporate

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DIRECTORS’ LIABILITY IN CURACAO

Quasi-director may be held liable too

The members of the board of managing directors are personally and severally liable towards the limited liability company (NV or BV) for any loss caused by the improper performance of duties. Each member of the board who proves that he cannot be blamed for such improper performance and that the activities concerned fall outside the scope of activities addressed to him, and that he has not been negligent in taking steps to avert the related consequences, is not liable (Section 2:14 subsection 4 Curaçao Civil Code; “CCC”). Therefore, a division of tasks among such …
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30
Aug 2013
CATEGORY

Corporate

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THIS BLOG IS ARCHIVED BY THE LIBRARY OF CONGRESS

Blogs of today can be studied for years to come

I’m thrilled to learn from Robert Ambrogi’s blog that “Karel’s Legal Blog” has been archived in the Library of Congress:

On the Internet there is no rule against perpetuities. To the contrary our perpetuation seems assured. Latest case in point: the new Legal Blawgs Web Archive from the Library of Congress. Yes, just as the LOC is archiving all of our tweets, turns out it is also archiving a selection of legal blog posts, and has been doing so since March 1, 2007. (…)

The LOC describes …
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17
Jul 2013
CATEGORY

Various

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LITIGATION IS A SKILLED PROFESSION (part 8)

New legislation

Finally, note that rather simple examples have been taken here. However, many suits are complicated with regard to their subject matter. In this connection disputes about complicated take-over issues, disputes between investors and an investment fund, disputes with a contractor or architect about a building or disputes about intellectual property come to mind. All these types of dispute require from advocates much more knowledge of and experience with litigation. It is not that each advocate must be an expert in all those areas but he should at least have experts in his team.

Only a few aspects of …
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14
Jun 2013
CATEGORY

Legal

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LITIGATION IS A SKILLED PROFESSION (part 7)

Injunctive relief

Apart from seizures it is also possible to consider an application for interim injunctive relief (voorlopige voorziening). The Judge for Interim Relief can render so-called provisional relief, for instance order a building freeze or order the counterparty to pay an advance on the compensation. Such a provision is called provisional because it is a measure in the interests of maintaining order to which the court dealing with the principal case is not bound. So it may well be the case that the provisional judgment of the Judge for Interim Relief differs fundamentally from the judgment of the court …
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07
Jun 2013
CATEGORY

Legal

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LITIGATION IS A SKILLED PROFESSION (part 6)

Proceedings in various jurisdictions

Sometimes cases which are strongly interrelated to each other are brought before different courts. For instance you instigate proceedings with the court in Curacao and your counterparty instigates proceedings at the same time against you before the court in Aruba or in Sint Maarten. If the merits of the case involve the same dispute it would hardly be efficient if litigation would take place before two different courts. In that case there would also be a risk that contradictory judgments would be delivered. The Code of Civil Procedure provides for an arrangement with regard to referral …
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31
May 2013
CATEGORY

Legal

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LITIGATION IS A SKILLED PROFESSION (part 5)

Duty to submit exhibits

It can of course happen that it is not a plaintiff but the defendant or a third party who has the documents by which the plaintiff can prove the existence and extent of his claim. There is a separate procedure by which such documents can be demanded. This procedure, better known as the duty to submit exhibits of Section 843a of the Code of Civil Procedure requires several conditions which must be satisfied before the court can allow that claim (exhibitieplicht).

Many other issues can play a role. I will mention a few. Say that you …
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24
May 2013
CATEGORY

Legal

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LITIGATION IS A SKILLED PROFESSION (part 4)

Statement of Defense

As the defending party you have to put up a defense (Statement of Defense) and in this regard this statement should not only be clear and complete but you should also know for instance what formal defenses you should advance. With regard to the latter for instance the plea of limitation of action comes to mind. In many cases the period of limitation of action (verjaring) is five years but sometimes it is a much shorter period. The short period of limitation of six months applies to the annulment of a resolution of a legal entity registered …
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17
May 2013
CATEGORY

Legal

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LITIGATION IS A SKILLED PROFESSION (part 3)

Foreign law

It often happens that for instance the court in Curacao has jurisdiction to hear a case but the claim is governed by the law of another country. In that case the court must be informed of the contents of that foreign law by the parties. Obviously, before you institute these proceedings you must have examined whether your claim has any chance of success. And you have to consider the question of what you will do if the claim is awarded by the court in Curacao but you have to go abroad for enforcement of that judgment. Sometimes you …
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10
May 2013
CATEGORY

Legal

COMMENTS No Comments