Arrest and Execution

In order to gain security for a claim it is possible under Dutch law to make an arrest or attachment on assets such as bank accounts, vessels, cargo (aboard ships) and debts. Many companies have their holding company in The Netherlands for fiscal reasons. In case of claims on subsidiairies this offers the opportunity to effect a conservatory attachment under the holding companies directed against the subsidiairies.

In some cases, such a holding company has issued a so-called Article 2:403 Dutch Civil Code statement, meaning that the parent company is severally liable for the contractual obligations of its group companies. Such a statement should be registered in the trade register of the Dutch Chamber of Commerce and can be retrieved from there. The wording of the statement is decisive for the scope of the liability of the holding company.

The Dutch legal system facilitates the claiming creditor by offering an easy and informal legal procedure for being granted relief for (conservatory) attachment. A recent development is that a Dutch judge under certain circumstances may grant permission for arrest in another EU country. Moreover, a Dutch judge can, on the basis of the European Account Preservation Order, grant permission for arrest of a bank account of a debtor with another EU-member state. 

After receiving a judgement from a court, the conservatory attachment may be converted into a seizure under a warrant of execution. The bailiff collects the claim, for example by selling the goods or by collection of the debts from the debtor. 

For the purpose of attachment of vessels and auctions, we work closely together with trusted bailiffs, also with regard to the asset recovery strategy in order to safeguard the recoverability of the judgement. In the event of bankruptcy, we advise our clients about the possibilities of maximum recovery, if possible separate from the bankruptcy estate.