WILLEMSTAD – The government’s corporate governance advisor Stichting Bureau Toezicht en Normering Overheidsentiteiten (SBTNO) has issued a negative recommendation regarding a proposal by Charles Cooper to allow Woningbouw Curaçao to distribute dividends for the 2023 financial year.
According to SBTNO, such a dividend payment would not be legally possible because the company did not record a profit in 2023. Instead, Woningbouw Curaçao reported a net loss of approximately 125,000 guilders.
The loss was largely attributed to declining income from home sales, while operational costs increased significantly. Expenses rose particularly in areas such as personnel, accounting services and legal support.
In addition to the financial loss, SBTNO noted that the company’s statutes prohibit dividend payments when the company’s equity falls below its nominal capital. According to the advisory body, that situation currently applies.
Woningbouw Curaçao is also in the process of liquidation. Of the original portfolio of 167 homes, only 35 remain. Negotiations are underway with Fundashon Kas Popular (FKP) to take over the remaining properties so the company can eventually be dissolved.
SBTNO also criticized what it described as shortcomings in transparency and corporate governance. The advisor stated that the company does not have a clear dividend policy and has not properly implemented the applicable corporate governance code.
For that reason, SBTNO recommends first improving financial management and governance structures before any consideration is given to distributing dividends.