INTERNATIONAL CREDIT INSTITUTIONS IN CURACAO

Banking business abroad

Credit institutions (banks) in Curacao are subject to the National Ordinance on the Supervision of Banking and Credit Institutions 1994 (the NOSB). The NOSB makes a distinction between ‘credit institutions’ and ‘international credit institutions’. The NOSB defines a credit institution as an institution that to an important extent makes its business of:

  • the solicitation of repayable funds (“deposits”, whether term deposits or deposits which are repayable on demand, whether or not savings deposits, whether or not against issue of debt instruments); and
  • granting credit for its own account.
  • An ‘international credit institution’ is defined as a credit …
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    13
    Sep 2012
    CATEGORY

    Legal

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    CIVIL PROCEEDINGS IN CURACAO

    Information for foreign plaintiffs

    Are there any particular issues that concern foreign plaintiffs in Curacao? If proceedings on the merits are initiated by a non-resident plaintiff, the defendant may ask the court to order that the plaintiff provide security for damages, costs and interest which it might be liable to pay as a result of the judgment in aforementioned proceedings. This ‘cautio judicatum solvi’ does not apply if there is a Convention (Treaty) on legal proceedings between Curacao and the plaintiff’s country.

    Can attorney costs for legal proceedings be recovered? Generally speaking, each party has to bear its own attorney …
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    25
    Aug 2012
    CATEGORY

    Legal

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    INADEQUATE CAPITALIZATION OF A CURACAO COMPANY

    Liability for thin-capitalization?

    A shareholder is not personally liable for acts performed in the name of the company and is not liable to contribute to losses of the company in excess of the amount which he must pay to the company as contribution for his shares.

    In terms of ‘piercing the corporate veil’, thin or inadequate capitalization usually means capitalization that is not in proportion to the nature of the risks the business of the corporation necessarily entails; in other words it is based on likely economic needs rather than legal requirements. In almost all jurisdictions, undercapitalization as such is …
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    16
    Aug 2012
    CATEGORY

    Corporate

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    DUTIES OF A MANAGING DIRECTOR OF AN NV OR BV

    Acting in the best interests of the company

    Although not explicitly provided for in Book 2 of the Civil Code of Curacao (“CCC”), it is considered a general rule of corporate law that the management board (a.k.a. board of directors) must act in the best interests of the company (an NV or BV) in the performance of its duties, even when acting on instructions from others (e.g. shareholders). This includes the interests of the shareholders, the employees and, according to most legal writers, the creditors of the company.

    The management board also has a duty to account to the general …
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    09
    Aug 2012
    CATEGORY

    Corporate

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    CURACAO AND ITS DEFICIT

    Who do we have to thank for the conservatorship?

    Recently, a lot has been written and said about the fact that Curacao is under some kind of conservatorship (or guardianship). In this case conservatorship means something like: not being allowed to take your own (financial) decisions without the approval of a supervisor. How could it have come this far?

    In the run-up to the dissolution of the Netherlands Antilles a debt restructuring program was extensively discussed and negotiated. At the time, there was a debt of several billions. Eventually, the Netherlands was prepared to provide several billions, so Curacao and St …
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    27
    Jul 2012
    CATEGORY

    Various

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    COURTS AND OMBUDSMAN REPORTS

    Ombudsman reports are taken seriously

    An Ombudsman determines whether a complaint is justified or not. If the Ombudsman finds that a complaint is justified or has merit, he may decide to try and persuade the government or government agency to change its policy or decision. This topic, however, is about an Ombudsman report resulting from a complaint primarily filed to establish whether there were sufficient grounds to initiate legal proceedings in a regular court. A lawyer and his client may decide to submit the Ombudsman report to the court, in the course of proceedings, as evidence that supports the client’s …
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    19
    Jul 2012
    CATEGORY

    Legal

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    OMBUDSMAN INVESTIGATION

    Ombudsman beneficial to lawyers and their clients?

    In several jurisdictions the law provides that, with certain exceptions, a statement made or an answer given by a person during an investigation by the Ombudsman, and a report or recommendation of the Ombudsman, is inadmissible in evidence in a court or in any other proceeding.

    As far as legal proceedings in the Dutch Caribbean are concerned, our laws do not prohibit an Ombudsman’s report from being introduced into a civil lawsuit. Based on an Ombudsman’s report one may report a case to the police or the public prosecutor’s office. It should be …
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    12
    Jul 2012
    CATEGORY

    Legal

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    LAWYERS COMPARED TO OMBUDSMEN

    Tarzan in the administration jungle

    I will not go into too much detail regarding the role and nature of an Ombudsman and investigations carried out by him. The role of Ombudsman is known in many jurisdictions and they can, just like lawyers, be found in all types and sizes. Some are described as “Tarzan in the administration jungle”. I will merely attempt to only highlight a few of the differences between an Ombudsman and a lawyer.

    An Ombudsman is the obvious person for civilians to approach with their complaints about government and government agencies. The main task of the Ombudsman …
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    07
    Jul 2012
    CATEGORY

    Legal

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    LAWYERS IN THE DUTCH CARIBBEAN

    What is a lawyer?

    For people dealing with lawyers it is of importance to understand lawyers as a profession and what they may be after in a particular case. I will therefore briefly discuss the nature of this centuries old profession.

    Well, what is a lawyer? The answer depends on the context in which this question is posed. In the Dutch Caribbean Islands (Aruba, Bonaire, Curacao, Saint Maarten, Saint Eustatius and Saba) for instance it is a regulated and protected profession like in most other countries.

    The Advocatenlandsverordening 1959 [Lawyers National Ordinance 1959] talks about persons who practice a profession …
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    29
    Jun 2012
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    GOVERNMENT AND CORPORATE GOVERNANCE (V)

    Government drafted model articles of association

    The first model articles of association date from March 15, 2011.

    For criticism see: K. Frielink, Visie Land op overheids-NV’s verkeerd [Vision Country on government-owned NVs incorrect], Antilliaans Dagblad 15 April 2011, p. 16 and M.L. Alexander, F.B.M. Kunneman, L.G. Santine and R.J. in ’t Veld, Modelstatuten ten sterkste afgeraden [Model articles of association strongly discouraged], Antilliaans Dagblad 20 September 2011, p. 14-15. See also K. Frielink, Stop politieke benoemings- en ontslagcarrousel [Stop politicial appointment and dismissal merry-go-round], Antilliaans Dagblad 14 September 2010, p. 14-15.

    In the meantime, the models for …
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    21
    Jun 2012
    CATEGORY

    Corporate

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    GOVERNMENT AND CORPORATE GOVERNANCE (IV)

    Code Corporate Governance Curacao

    On January 1, 2010, the National Ordinance regarding corporate governance came into effect. Based on this the Code Corporate Governance Curacao came into being, that also came into effect on January 1, 2010. In it, reference is still made to the Executive Council and the island territory of Curacao, but as from October 10, 2010 these are understood to mean the government of Curacao and the Country Curacao.

    The National Ordinance does not only undertake to establish a corporate governance code, but also to implement the Code in the government-owned companies. In 2011, this implementation obligation …
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    14
    Jun 2012
    CATEGORY

    Corporate

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    GOVERNMENT AND CORPORATE GOVERNANCE (III)

    The government is not automatically an ‘ordinary’ shareholder

    It is obvious that in a small community such as that of Curacao, with only a limited choice when it comes to directors and supervisory directors to be appointed, and in which (family, social) networks seem to play an important role in making choices, there is a field of tension. It is even more important therefore that government has a clear vision regarding its shareholdership and that there are good and transparent procedures, e.g. regarding the appointment of directors and supervisory directors.

    Does the obligation exist for the government to, briefly stated, …
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    07
    Jun 2012
    CATEGORY

    Corporate

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