Analysis of CDAL-Porto Palma Lease Arrangement

Legal and Financial Implications for Jolly Harbour Freeholders

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Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. Freeholders should consult with a qualified attorney for specific guidance tailored to their situation.

Summary

This analysis examines the relationship between Caribbean Developments (Antigua) Limited (CDAL) and Porto Palma Ltd, specifically focusing on the lease arrangement for commercial properties within Jolly Harbour.

Key findings include:

  • The arrangement appears to be a related-party transaction with potential conflicts of interest
  • The lease terms may not reflect fair market value, potentially harming freeholders
  • Maintenance charges paid by freeholders may be improperly subsidizing this arrangement
  • The arrangement may violate specific terms in the land transfer covenants
  • Several legal remedies and actions are available to freeholders

This document provides freeholders with information to understand and potentially challenge improper charges resulting from this arrangement.

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