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OWNERSHIP/GENUINE LINK REQUIREMENTS
This is a need to seriously weigh the advantages of imposing the 'genuine link' requirement against the disadvantages of the loss of existing tonnage and revenue that might result from such a requirement. (LCL)
The Register might be unattractive to owners based overseas if they are required to implement management and control of a ship in Hong Kong, and have to pay local profits tax. This would result in an overall loss of business to the banks in Hong Kong. (HKAB)
The 'genuine link' requirement by limiting ownership to a company incorporated in Hong Kong or a person with the right of abode in Hong Kong, is supported as this is a clear manifestation that the Hong Kong flag is not a flag of convenience. (IST)
Further research should be carried out in regard to the relationship between the ownership of a Hong Kong ship and the new Hong Kong Register. Any conclusive definition of the 'genuine link' concept emerging from the UNCTAD Shipping Conference should be closely followed so that the new Register will not dissent from internationally accepted principles and jeopardise its right to international recognition. (HKGCC)
It would be unfortunate if the 'genuine link' requirement would result in disqualifying vessels owned by companies in the UK or PRC. (NUMAST)
While measures should be taken to ensure that Hong Kong should not be regarded as a flag of convenience, the proposed 'genuine link' requirement has gone further than is necessary to achieve this aim.
The UK Government, in its consultative document on Registration of British Ships, originally proposed that UK companies should register in the UK, Gibraltar companies in Gibraltar and so on. HMG has however been subsequently persuaded that this is too inflexible and is now prepared to accept that UK companies should be able to register in dependent territories and vice versa on the understanding that there should be a representative answerable to the laws of the state of registry.