ELECTRONIC MONEY INSTITUTIONS IN ARUBA

A license is required

The European Central Bank defines e-money as follows (a non-legal definition): “E-money can be defined as any amount of monetary value represented by a claim issued on a prepaid basis, stored in an electronic medium (for example, a card or computer) and accepted as a means of payment by undertakings other than the issuer, predominantly for small-value transactions (for example, the settlement of modest transactions over the Internet and of parking or telephone charges and payment for public transport services).” (Electronic Money Institutions. Current trends, regulatory issues and future prospects. Legal Working Paper Series, No. 7/2008).


Read the rest »

24
Oct 2013
CATEGORY

Finance

COMMENTS No Comments

THE ARTICLES OF ASSOCIATION OF A CURAÇAO COMPANY (III)

Controlling minority?

Such a situation (i.e. example 2) is possibly less desirable from the company’s perspective, certainly where the more essential decision-making is concerned. Although decisions should be taken on the basis of a discussion of content and it will not always be possible to predict how the meeting of shareholders will vote, the possibility of ‘accidental’ majorities (whereby a minority shareholder nevertheless has the majority through the absence of others at the meeting of shareholders) leads to less predictability, or at least to greater uncertainty.

If a company has, for example, one 30% shareholder and the remaining 70 shareholders …
Read the rest »

15
Oct 2013
CATEGORY

Corporate

COMMENTS No Comments

THE ARTICLES OF ASSOCIATION OF A CURAÇAO COMPANY (I)

Comparable with a constitution

The articles of association of a Curaçao company (a public [NV] or private [BV] limited liability company) are somewhat comparable with a constitution or state regulations: the articles of association comprise – like the law, but also additionally to the law and, where permitted, unlike the law – the rules of play (rights, obligations and powers) to which all the organs of the company (managing board, supervisory board, shareholders’ meeting) and the members of those organs must adhere or on which they can rely.

The law of Curaçao does not prescribe that a special (or qualified) …
Read the rest »

09
Oct 2013
CATEGORY

Corporate

COMMENTS No Comments

VALIDLY REPRESENTING A CURACAO COMPANY

Extract and Articles are of importance

Limited liability companies like the Curaçao NV or BV are legal entities. Whether or not a managing director has the authority to validly represent a company can be derived from the extract from the Trade Register of the Chamber of Commerce of Curaçao together with the articles of association of the company.

However, it could be the case that the company has further regulations from which representation limitations follow. This should be assessed on a case by case basis.

A counterparty may rely on a written statement from the board of managing directors or …
Read the rest »

26
Sep 2013
CATEGORY

Corporate

COMMENTS No Comments

ASSET PROTECTION IN CURACAO

Curaçao: a jurisdiction not to be missed

A Curaçao private foundation or a trust is often used for asset protection and privacy purposes. The Curaçao private foundation and the Curaçao trust must be set up by a notarial deed executed before a civil law notary in Curaçao. Both the private foundation and the trust are a very flexible solution for asset protection and privacy purposes. A private foundation, for instance, can be easily implemented in international holding structures through Curaçao and is very suitable for family asset protection. By means of a letter of wishes or provisions in the articles …
Read the rest »

20
Aug 2013
CATEGORY

Finance

COMMENTS No Comments

THE COSTS OF LITIGATION

Parties have to bear their own attorney costs

Under the laws of Aruba, Bonaire, Curaçao, St. Maarten, St. Eustatius and Saba, generally speaking, each party has to bear its own attorney costs, except if there is an agreement in place between the parties providing for such compensation. Other costs related to proceedings are for instance bailiff costs and court fees.

The extent to which the aforementioned costs of litigation are to be borne by the party losing the case are determined by the court. The costs will in fact not compensate the actual costs and attorneys fees incurred. They are …
Read the rest »

12
Aug 2013
CATEGORY

Legal

COMMENTS No Comments

SEIZING ASSETS IN THE DUTCH CARIBBEAN

Court approval required, but freezing assets is rather easy

Under the laws of Aruba, Bonaire, Curaçao, St. Maarten, St. Eustatius and Saba any party with a prima facie claim may file a petition for a court order granting an attachment, which petitions are generally granted, solely based on the allegations in the petition. Seizing assets of a another party may already be possible at a time when the claim (e.g. under an agreement or a guarantee) is not yet due, but where there is good reason to believe that, when it will become due, the other party will not honor …
Read the rest »

09
Aug 2013
CATEGORY

Legal

COMMENTS No Comments

THE CURACAO TRUST

Can be used as protected or segregated cell company

On 1 January 2012, new legislation entered into force according to which it is now possible to set up a trust (Curacao Trust) similar to the trust in Anglo-Saxon common law jurisdictions. The introduction of the Curacao Trust serves as an important instrument which could be used within financial transactions in the Caribbean as a significant part of these transactions are initiated from common law jurisdictions.

The Curacao Trust can be used for different purposes, such as, for example:

  • To set aside capital for children’s upbringing, education or maintenance
  • Estate planning

  • Read the rest »

    02
    Aug 2013
    CATEGORY

    Finance

    COMMENTS No Comments

    DE ADVOCAAT (VIII)

    De utopische advocaat

    Van de ideale advocaat moet een hoge mate van beschaving worden verwacht, alsook een hoge mate van geleerdheid en kundigheid. Een praktische instelling, taalvaardigheid en rhetorische bekwaamheid maken deel uit van de standaardbagage van de utopische advocaat. Hij wordt niet alleen gevreesd, omdat hij vlijmscherp analyseert, van logica gespeende redeneringen doorklieft en de belagers van de rechtsstaat doet verstenen, maar zowel vriend als vijand hebben eerbied voor zowel zijn inborst als zijn kunde.

    Niet zelden zal de utopische advocaat het gevoel bekruipen dat hij in het debat met anderen graast op een schrale weide. Slechts weinigen die …
    Read the rest »

    31
    Jul 2013
    COMMENTS No Comments

    A CURACAO COMPANY WITH NEGATIVE EQUITY AND FINANCIAL SUPPORT

    Restrictions for providing financial support to a party acquiring shares in its capital?

    A company cannot purchase its own shares if it has a negative equity capital or when this equity capital becomes negative by purchasing them, whereby the nominal capital applies as the lower limit (Section 2:114 subsection 2 of the Curaçao Civil Code in conjunction with Section 2:118 subsections 5 to 7 of the Curaçao Civil Code).

    The question is, however, whether a Curaçao NV (public limited company) or BV (private limited liability company) with negative equity is allowed to provide financial support to a third party acquiring …
    Read the rest »

    26
    Jul 2013
    CATEGORY

    Corporate

    COMMENTS No Comments

    DE ADVOCAAT (VII)

    De advocaat en ethiek

    De bekende jurist Pitlo (A. Pitlo, Evolutie in het privaatrecht, Groningen: H.D. Tjeenk Willink 1972, p. 102) spreekt ten aanzien van bepaalde advocaten over het ‘half-intellect’ dat zich door geleerddoenerij tegenover de massa staande moet zien te houden. De publicaties die uitermate kritisch zijn over advocaten zijn van alle tijden en de eerste dateren al van voor het oude Rome. In dit verband moet ook François Rabelais (1494-1553) worden vermeld en (min of meer op zijn voetspoor) Honoré Daumier (1808-1879). De spotprenten van Daumier in de serie ‘Les gens de justice’ zijn alom bekend.

    Een advocaat …
    Read the rest »

    24
    Jul 2013
    COMMENTS No Comments

    THE INDEPENDENT SUPERVISORY BOARD IN CURACAO

    Should be mandatory for government-owned entities

    Under the laws of Curaçao, the main task of a board of supervisory directors is to supervise the board of managing directors of a limited liability company (NV or BV).

    The Corporate Code provides for two different kinds of boards of supervisory directors, a “regular” board of supervisory directors and the so-called “independent” board of supervisory directors (Section 2:139 Curaçao Civil Code). Within this context the word independent means that the supervisory directors are independent of the shareholders, interest groups (“belangengroepen”) and to a certain extent from the shareholders’ meeting.

    An independent board of …
    Read the rest »

    19
    Jul 2013
    CATEGORY

    Corporate

    COMMENTS No Comments