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… Continue reading VALIDLY REPRESENTING A CURACAO COMPANY
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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… Continue reading IMPACT OF THE LIABILITY TO THE DIRECTOR OF THE DIRECTOR (I)
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… Continue reading ASSET PROTECTION IN CURACAO
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… Continue reading THE COSTS OF LITIGATION
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… Continue reading THE CURACAO TRUST
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… Continue reading A CURACAO COMPANY WITH NEGATIVE EQUITY AND FINANCIAL SUPPORT
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… Continue reading THE INDEPENDENT SUPERVISORY BOARD IN CURACAO
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… Continue reading THIS BLOG IS ARCHIVED BY THE LIBRARY OF CONGRESS
THE REPAYMENT OF SHARE PREMIUM IN CURACAO
Net equity may not be or become negative From the legal point of view in Curaçao, share premium (’agio’) forms part of the company’s free reserves (Curaçao law does not provide for statutory reserves), and does not qualify as share capital. If share premium is to be repaid, the company’s financial condition should at the… Continue reading THE REPAYMENT OF SHARE PREMIUM IN CURACAO
BEARER SHARES IN A CURACAO COMPANY
Registered shares must be issued first According to the Curaçao act on corporate law (Book 2 Curaçao Civil Code) it is not possible to (directly) issue bearer shares. A company with only bearer shares has no shareholders’ register. Only a public limited liability company (NV) may issue bearer shares, provided that registered shares be issued… Continue reading BEARER SHARES IN A CURACAO COMPANY
PREJUDGMENT ATTACHMENT IN CURACAO
A petition is only marginally examined How easily can one obtain permission to freeze assets? The Curaçao Code of Civil Procedure provides the possibility to seize and freeze assets in anticipation of a court order to pay a certain amount or to return certain goods. This legal remedy is referred to as prejudgment attachment or… Continue reading PREJUDGMENT ATTACHMENT IN CURACAO
NATIONAL INTEGRITY SYSTEM ASSESSMENT: CURAÇAO 2013
Transparency International Between 2012 and 2013, Transparency International conducted a National Integrity System (NIS) assessment on Curaçao. The Caribbean island has a population of 150,560 and is an autonomous country within the Kingdom of the Netherlands. It has gone through significant political change in recent years following dissolution of the Netherlands Antilles in 2010 and… Continue reading NATIONAL INTEGRITY SYSTEM ASSESSMENT: CURAÇAO 2013