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ST. MAARTEN | The private limited liability company (B.V.)

The B.V. is a flexible form of company.

The B.V. is a company similar to the N.V. The main differences as compared to the N.V.
are:

• The B.V. has registered shares only;
• The articles of association can determine that the shareholders can be held liable for the debts of the B.V.;
• The articles of association of the B.V. may contain a provision providing for a different manner for dissolution of the company;
• If it is envisaged that preferential rights be attached to shares, such may be provided for in the articles of association of the B.V.;
• There is no distinctive financial regime such as for the “large” N.V.;
• On the initiative of an individual shareholder, general shareholders' meetings for the B.V. can be convened;
• The B.V. can be organized in such a manner that it is “managed by shareholders”; in that case there is no distinction made between shareholders and managing directors as corporate bodies.

The option of a company “managed by shareholders” has been introduced for the B.V. This form of the B.V. does not have a management board as a separate corporate body. The joint shareholders or the sole shareholder act(s) as management, which simplifies the taking of corporate action and the management of this type of company in general. Since no managing directors have been appointed as such, there are no formalities of appointment, suspension and dismissal of managing directors, nor is there a difference between a general meeting of shareholders and management board meetings in this case.

The shareholders may determine the details of the way in which they will manage the company and the division of tasks mutually agreed upon in a shareholders’ agreement. Using this type of company, a legal concept can be created that resembles the partnership
(commanditaire vennootschap), and at the same time benefits from the facts that, as opposed to partnerships, this company managed by shareholders is a legal entity with the ability to act, sue and be sued in its own name. The shareholders are only liable for such company’s debts up to the amount to be paid on those shares (if any).