Dear Editor,
To begin with, I would like to congratulate President Daniel Gibbs and Mr. Jean Hamlet for all their efforts and hard work in the creation of SAS TINTAMARRE corporation. This newly formed organization will go a long way in providing the beneficial services to the French community, and will also open the door for new development opportunities on French St. Martin. Such an important business venture came at a time when Dutch St. Maarten is desperately looking at new ways to diversify its economy. As new ideas and awareness of businesses are made possible on a daily basis, I am one who stands alone in recognizing any individuals for their outstanding work in the community for new development projects.
However, more important information on the organization can be found in The Daily Herald, July 6, 2020, Vol.30 No. 040. First of all, as previously stated in the newspaper, TINTAMARRE will provide the people of French St. Marten with some form of economic stability and financial prosperity in the near future. According to the promotors: The organization was in the making for the past three years, and it came a reality in 2020. This initiative was taken by President Daniel Gibbs and Mr. Jean Hamlet to create employment and generate income tax revenues for the Collectivité, and most importantly to provide an essential high speed Internet and other services for the community as well.
The investment capital is made up of 48,000 euros contributed by the Collectivité, representing 40 per cent of the number of shares in the corporation. Electricity de France (EDF) contributed shares of 60 per cent representing a value of 52,000 euros in the organization. The purpose of SAS TINTAMARRE was created to manage underground digital networks, and the development of high speed Internet in event of destructive storms. To maintain electricity and digital services after a hurricane. It is also responsible for burying and maintenance of the networks, but Internet services will remain the responsibility of private operators. The promotors made it very clear that the organization is a management company providing additional services such as burying cables and maintenance of networks etc.
Now, a careful look at some of the formation process regarding public corporation, public limited company (PLC), and private limited company (Ltd). Some of the characteristics of these organizations are quite different from a corporation; for example, a corporation is created by an act of parliament by the minister responsible for its trading activity with the general public. This type of organization is managed by a board appointed by the minister for the daily operation of the business on behalf of the public. The board must be held responsible for the way it makes use of public funds. Government established a corporation because some services are too important to be left in the hands private people.
Public corporations usually enjoy “economy of scale” because it usually has access to large-scale financing, and could afford to provide services much cheaper than its competitors in the marketplace. It provides employment to people in the community and also protectx jobs for citizens in the country. If President Gibbs controls 40 per cent of the stake in SAS TINTAMARRE it is a good decision for the people on the French side. The 60 per cent shares issued to EDF is also important because it has the experience and technological skills to handle cable operations in the country.
As the Collectivité emphasizes, it is only involved in the managerial operation of the company. EDF will handle the cable operation and other high-tech services that go with it. The transfer of shares to private individuals: If Gibbs sells 10 per cent of his share to an outside operator, he will leave 30 per cent. The new shareholder with the 10 per cent could join with EDF, and Gibbs will lose control of his position in the organization. If EDF sells 10 per cent of their shares, they will leave with 50 per cent. That new holder can link up Gibbs and give him the same control as EDF.
This strategy is common in corporations. Shares can change hands in the business even when it is operating. I think operator(s) who want to be part of SAS TINTAMARRE or get involved should do so by contract of work instead of looking to earn shares in the company. I also noted where President Daniel Gibbs is seeking for governance control in Semsamar. This is also a good initiative because he earns 51 per cent of the shares in that company. The people should support him to be in that position.
More on public and private limited companies: A company is a legal entity. It is an incorporated body separated from the people owning it. A public company must have a minimum of two directors and an authorized share capital of about US $50,000, and allotment of that amount in shares in order to trade with the public. It must have a minimum of two directors. It can issue its shares for sale to the public, and can advertise it shares on the Stock Exchange. It can issue debentures or bonds in order to raise loan capital. It must carry the initials (PLC) after its name.
A private company usually has one director. It doesn’t have a limit requirement to raise capital. It cannot advertise shares to the public. It usually controlled by family members or close friends. It must carry the initials (Ltd) at the end. There are other abbreviations in different languages associated with companies such as GMBH, SARL, BV, N.V., etc.
In summary, it is important to note that a company is a separate entity from the people owning it. A good book for young adults to read today is the The Richest Man in Babylon; very inspiring!
Joseph Harvey
