Supervision only if pension promise has been made Under Netherlands Antilles National Ordinance on company pension funds 1985 (‘Landsverordening ondernemingspensioenfondsen’; the “NOP”), company pension funds are subject to supervision by the Netherlands Antilles Central Bank. The NOP is based upon the principle that if an employer makes a pension promise, it can fulfill this pension… Continue reading SUPERVISION OF NETHERLANDS ANTILLES COMPANY PENSION FUNDS

Supreme Court ruled on controversial issue The Supreme Court of the Netherlands, the Netherlands Antilles and Aruba ruled on 13 April 2007 that Aruba must recognize same-sex marriages registered in the Netherlands. Same-sex couples can marry in the Netherlands for six years already. However, Aruba and the Netherlands Antilles have not changed their legislation which still does… Continue reading ARUBA HAS TO RECOGNIZE DUTCH SAME-SEX MARRIAGES

Central Bank requires IFRS The financial statements of Netherlands Antilles banking institutions must be prepared in accordance with IFRS (International Financial Reporting Standards). The IFRS are a set of accounting standards issued by the International Accounting Standards Board (IASB). Deviation from this standard is allowed only after prior written approval from the Netherlands Antilles Central… Continue reading FINANCIAL STATEMENTS OF NETHERLANDS ANTILLES BANKS

There are certain exceptions Many contracts are concluded on the telephone. Often a (fax) confirmation is sent of the most important terms of the transaction. However, an oral contract as such creates a binding transaction under Dutch Caribbean Law (a.k.a. Netherlands Antilles and Aruba law). Oral agreements are valid and binding, unless the law requires… Continue reading ORAL CONTRACTS ARE VALID AND BINDING UNDER THE LAWS OF THE DUTCH CARIBBEAN

Home country supervision exemption The National Ordinance on the Supervision of Investment Institutions and Administrators 2002 (‘Landsverordening toezicht beleggingsinstellingen en administrateurs’) provides for a licensing system for investment institutions and administrators. According to the Netherlands Antilles Central Bank’s policy guidelines on exemption for fund administrators, administrators not domiciled in the Netherlands Antilles that (i) provide… Continue reading SUPERVISION OF FOREIGN FUND ADMINISTRATORS RENDERING SERVICES TO NETHERLANDS ANTILLES FUNDS

The economy starts booming again Although Curacao is only a tiny island in the Caribbean Sea, it is most attractive for investors and tourists. Both will like the climate in terms of taxes and temperature. The financial, legal and technical infrastructure is excellent too. Curacao is famous for its harbor: it is the largest natural… Continue reading CURACAO WELCOMES INVESTORS AND TOURISTS

International jurisdiction required In general, a Netherlands Antilles (e.g. Curacao) court does not have unlimited jurisdiction to impose cross-border injunctions, according to established jurisprudence. It can be deduced from the judgment of March 19, 2004 of the Dutch Supreme Court (Philips / Postech case) that if the court has jurisdiction, it also has jurisdiction to… Continue reading CORSS-BORDER INJUNCTIONS ISSUED BY A NETHERLANDS ANTILLES COURT

Not every application is honored In order to establish a bank on Curacao (the Netherlands Antilles) a license granted by the Central Bank (‘Bank van de Nederlandse Antillen’) is required. The general rule on Curacao is that new banks are only admitted as long as the banking market provides sufficient opportunities for a sound development… Continue reading ESTABLISHING A BANK ON CURACAO

Antitrust law infringements John D. Briggs and Sarah Jordan (Howrey) published an article in Business Law International (Vol 8 No 1, January 2007, p. 1-37) titled ‘Presumed Guilty: Shareholder Liability for a Subsidiary’s Infringements of Article 81 EC Treaty’. Article 81 of the Treaty (full text below) prohibits agreements and concerted practices between firms that… Continue reading SHAREHOLDER LIABILITY FOR INFRINGEMENTS OF EUROPEAN TREATY

Foreign jurisdiction must allow conversion According to Netherlands Antilles law a limited liability company (NV or BV) or foundation can be ‘converted’ into a company governed by another jurisdiction, provided that this is allowed in accordance with the laws of the new jurisdiction. According to, e.g., Dutch law, such conversion to the Netherlands is in… Continue reading CROSS-BORDER CONVERSION OF A NETHERLANDS ANTILLES LEGAL ENTITY

A third party may attack a judgment Sometimes a judgment may affect the rights of a person or company not being a party to those proceedings. If one was not a party to those proceedings, one cannot appeal such a judgment. Third-party-opposition (in Dutch: ‘derdenverzet’) is a remedy granted to third parties (outsiders) whose rights… Continue reading THIRD-PARTY-OPPOSITION UNDER THE LAWS OF THE NETHERLANDS ANTILLES

Curacao provides a favorable climate for hedge funds Curacao (part of the Netherlands Antilles) currently provides a favorable tax, legal and regulatory climate for hedge funds. A fund vehicle can be established very quickly and very flexible. Furthermore, the current regulatory regime regarding the supervision of investment institutions and administrators and new anti-money laundering rules… Continue reading HEDGE FUNDS GOVERNED BY CURACAO LAW