Worldwide investments in CLUSTER MUNITIONS
report-worldwide_investments_cluster_munitions-2016
report-worldwide_investments_cluster_munitions-2016
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2.3.6 The Netherlands<br />
BACKROUND<br />
The Netherlands signed the Convention on Cluster Munitions on 3 December 2008 and ratified the<br />
convention on 23 February 2011. The law approv<strong>in</strong>g ratification of the Convention on Cluster Munitions<br />
governs the Netherlands’ implementation of its provisions. This law conta<strong>in</strong>s no prohibition on <strong>in</strong>vestment<br />
<strong>in</strong> cluster munitions. 672<br />
On 29 March 2011, however, the Dutch senate adopted a motion call<strong>in</strong>g for “a prohibition on direct<br />
XLVI 673<br />
and demonstrable <strong><strong>in</strong>vestments</strong> <strong>in</strong> the production, sale and distribution of cluster munitions.”<br />
On 13 December 2011, the Lower House of the Dutch Parliament adopted a similar motion. 674<br />
LEGISLATION<br />
On 1 January 2013, the amended Market Abuse (F<strong>in</strong>ancial Supervision Act) Decree entered <strong>in</strong>to force that<br />
“imposes an obligation that prevents an enterprise directly support<strong>in</strong>g any national or foreign enterprise<br />
which produces, sells or distributes cluster munitions.” 675<br />
The prohibition, set out <strong>in</strong> Article 21a of the Decree, states the follow<strong>in</strong>g:<br />
“1. An enterprise as referred to <strong>in</strong> Article 5:68 (1) of the Act, not be<strong>in</strong>g a clear<strong>in</strong>g <strong>in</strong>stitution, will take<br />
adequate measures to ensure that it does not:<br />
a. carry out transactions or has transactions carried out with a view to acquir<strong>in</strong>g or offer<strong>in</strong>g a f<strong>in</strong>ancial<br />
<strong>in</strong>strument that has been issued by an enterprise that produces, sells or distributes cluster<br />
munitions as referred to <strong>in</strong> Article 2 of the Convention on Cluster Munitions which was concluded<br />
<strong>in</strong> Dubl<strong>in</strong> on 30 May 2008 (published <strong>in</strong> the Bullet<strong>in</strong> of Treaties 2009, 45) or essential parts thereof;<br />
b. provide loans to an enterprise as referred to <strong>in</strong> subsection (a) above;<br />
c. acquire non-marketable hold<strong>in</strong>gs <strong>in</strong> the capital of any enterprise described under (a) above.<br />
2. The first section above is equally applicable to carry<strong>in</strong>g out transactions, or hav<strong>in</strong>g them carried out,<br />
with a view to acquir<strong>in</strong>g or offer<strong>in</strong>g a f<strong>in</strong>ancial <strong>in</strong>strument that has been issued by any enterprise that<br />
holds more than half of the share capital of an enterprise as referred to <strong>in</strong> subsection 1 (a) and also to<br />
loans to, or non-marketable hold<strong>in</strong>gs <strong>in</strong> such an enterprise.<br />
3. Section 1 above will not apply to:<br />
a. transactions based on an <strong>in</strong>dex <strong>in</strong> which enterprises described <strong>in</strong> subsection 1 (a) constitute less<br />
than 5 percent of the total;<br />
b. transactions <strong>in</strong> <strong>in</strong>vestment funds operated by third parties <strong>in</strong> which enterprises described <strong>in</strong><br />
subsection 1 (a) constitute less than 5 percent of the total; and<br />
c. <strong><strong>in</strong>vestments</strong> <strong>in</strong> clearly def<strong>in</strong>ed projects carried out by an enterprise described <strong>in</strong> subsection 1 (a)<br />
<strong>in</strong>sofar as such fund<strong>in</strong>g is not utilised for the production, sale or distribution of cluster munitions.<br />
4. Without prejudice to the provisions of section 1 above, enterprises that do hold f<strong>in</strong>ancial <strong>in</strong>struments,<br />
loans or non-marketable hold<strong>in</strong>gs as described <strong>in</strong> that section should dispose of them or term<strong>in</strong>ate<br />
them with<strong>in</strong> a reasonable period of time.” 676<br />
XLVI Orig<strong>in</strong>al Dutch text: “[…] een verbod op aantoonbare directe <strong>in</strong>vester<strong>in</strong>gen <strong>in</strong> de productie, verkoop en distributie van<br />
clustermunitie.” Translated by Roos Boer, PAX.<br />
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