3
We consider that the present rule that registration is evidence of legal title to a ship should be retained, as it gives certainty for all those who may deal with a shipowner or with the ship itself.
On the other hand, we doubt whether the present division of a ship into 64 shares serves any useful purpose under modern conditions. Certainly, it is rare to encounter a ship which is owned by more than one person, and the abandonment of the 64 share concept would not necessarily preclude the registration of several persons as joint owners. Important shipping registers such as Liberia and Panama do not divide their ships into shares, but this does not seem to cause any inconvenience in practice. As the concept of the trust is well established in Hong Kong, it will, in any event, always be possible to vest legal registered title in one person or jointly in a small group of persons on trust for a greater number of beneficial owners. (CC)
T
The proposed 'ownership' criteria are agreed. But if the owner is a company incorporated in Hong Kong', it must be ensured that the company must not be just a paper company and must have legally responsible bona fide shareholders in Hong Kong.
AVANJ
A Declaration of Ownership should be made and sworn by the responsible person as proof that there is a genuine link between Hong Kong and the vessel.
Furthermore, if a ship is able to de-register quickly, means should be made available to keep the 'legally responsible person' liable for a period after de-registration.
It is to a large extent how the concept of genuine link is defined that will determine whether the ITF will consider the future Hong Kong Registry as a Flag of Convenience (FOC) or not. ITF concurs with the proposed 'ownership' requirements. These requirements combined with stringent regulations concerning manning and management should prevent the Hong Kong Register from being considered as a FOC. (ITF)
There should be a genuine link between the ships registered here and Hong Kong, and there should be strict rgulations for ship ownership, shipping management and employment of crews. (HKSU)