Euro-bv open to fraud, mismanagement: FD

The Dutch company structure euro-bv or limited is often misused by suspect companies, the Financieele Dagblad reports on Thursday.

The paper says its own research shows there is mismanagement in two out of three bankruptcies involving a euro-bv or limited form. In practice, this means the book-keeping has disappeared or money has been removed so that the receivers cannot trace it.
In addition, a majority of directors involved in such companies have been involved in prior bankruptcies, the paper says.
The euro-bv or limited option is cheaper to set up than the traditional Dutch bv and there is no minimum capital requirement. Nor do the executives have to be screened by the justice ministry to make sure they do not have a criminal record.
The paper looked at the official reports on 123 bankruptcies.

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