Category: Legal

Registration of aircrafts In accordance with article 2 of the Netherlands Antilles Aviation Ordinance (P.B. 2001, no. 151) it is prohibited to fly with an aircraft which is (a) not provided with a valid proof of registration, (b) not provided with a nationality mark and a registration mark, (c)  not provided with a valid proof… Continue reading NETHERLANDS ANTILLES AVIATION LAWS

No derivate suit If the assets of a company are impaired by a third party in a way that cannot be accepted by the law, e.g. an act of tort, and as a result of which the value of the shares in principle decreased, it is only the company that is authorized and entitled to… Continue reading CAN A SHAREHOLDER CLAIM COMPENSATION FOR HARM DONE TO THE COMPANY UNDER THE LAWS OF THE NETHERLANDS ANTILLES?

The bankruptcy trustee has exclusive powers In a bankruptcy, the rights and powers to which the bankrupt company is entitled (for example the challenge of a claim) may only be exercised by the bankruptcy trustee. Also, only the bankruptcy trustee may exercise significant rights to which every individual creditor is entitled outside of the bankruptcy.… Continue reading THE BANKRUPTCY TRUSTEE VERSUS INDIVIDUAL CREDITORS OF A BANKRUPT UNDER THE LAWS OF THE NETHERLANDS ANTILLES

The petitioner must have an interest In proceedings pending between two or more parties, a third party may file a motion requesting a so-called joinder. The Dutch Supreme Court (May 3, 1957, NJ 1959, nr. 62) decided that a request for joinder between parties in pending proceedings may only be sustained, if there is proof… Continue reading REQUESTING A JOINDER UNDER THE LAWS OF THE NETHERLANDS ANTILLES AND ARUBA

A document retention policy should be in place Administrators and self-administered investment institutions should have policies in place or take such measures as may be needed to prevent the misuse of technological developments in money laundering or terrorist financing schemes. They should also have policies and procedures in place to address any specific risks associated… Continue reading RECORD KEEPING BY FUND ADMINISTRATORS IN THE NETHERLANDS ANTILLES

Double standards? On 30 September 2006, US Congress approved a bill that bans most forms of internet gambling (betting), including poker. The measure has been sent to President Bush to sign into law, which he will undoubtedly do soon. The ‘Unlawful Internet Gambling Enforcement Act of 2006’ is attached to the Safe Port Act as… Continue reading UNITED STATES BANS INTERNET GAMBLING

A prospectus should be prepared with the highest standard of care A Netherlands Antilles based investment fund may offer shares in its capital to investors by means of a prospectus. A prospectus is a.k.a. e.g., an offering memorandum, private placement memorandum (PPM) or an explanatory memorandum. The prospectus aims at informing the target market as… Continue reading THE NATURE OF A PROSPECTUS

The articles may provide for an instruction right I received a question about controlling one’s subsidiaries. I assume that the (Netherlands Antilles) holding owns the majority of shares in the subsidiaries. In general, it is the (managing board of a) holding company that exercises voting rights attached to the shares in its subsidiaries, i.e., the… Continue reading HOW TO CONTROL SUBSIDIARIES?

Relative effect only A conservatory attachment (or arrest) serves the purpose of trying to prevent a debtor from frustrating recovery by his creditor, for example, by alienating, removing, or hiding assets. However, under Netherlands Antilles law an attachment has a relative effect only: any subsequent transfer would be void in relation to the party that… Continue reading WHAT IS THE EFFECT OF ATTACHING SHARES UNDER THE LAWS OF THE NETHERLANDS ANTILLES?

Local practice may differ from island to island Some believe that the mortgagee should always procure auction proceeds of at least 70% of the appraised free market value and that the mortgagee may never accept a bid below such amount. The question is, however, whether such a minimum bid prize is required? The answer is… Continue reading FORECLOSING A MORTGAGE IN THE NETHERLANDS ANTILLES

Default could be a ground for early termination Under Netherlands Antilles law of long lease, a right of long lease (10 years or longer) is forfeit by decision of the court. However, a long lease deed may provide for unilateral termination upon a default in the payment of long lease installments. Even if the long lease… Continue reading THE TERMINATION OF A LONG LEASE UNDER THE LAWS OF THE NETHERLANDS ANTILLES

Basic overview of the procedure The appellate procedure in summary relief actions is as follows. The party appellant first files a deed of appeal with the court (a strictly formal document), followed within three weeks by a statement of grievances (“memorie van grieven”), setting forth the objections of the party appellant against the judgement. The… Continue reading APPELLATE PROCEEDINGS IN SUMMARY RELIEF PROCEEDINGS IN THE NETHERLANDS ANTILLES AND ARUBA