TNAG-0959-FCO40-1178-Shipping-in-Hong-Kong-1982 — Page 69

6.4/20.1/7.

2

INTRODUCTORY NOTE

The purpose of this report is to provide up-to-date data on the true management id beneficial ownership of open-registry fleets, and to review changes which have

curred since the previous report on this subject. 1'

As in the preparation of the previous report, the UNCTAD secretariat commissioned computer search and analysis of the data contained in classification society egisters and commercial directories published throughout the world in order to trace he ownership of vessels beyond the nominal owners recorded in the registers of pen-registry countries. 2/ The present report relates to the situation on

July 1979.

The present report has pursued the identification of true managers further than

The 1978 study had id the previous report, especially in relation to Bermuda. dentified Bermudan companies as managing 12 million tons dwt, but further nvestigations have revealed that the true powers of management over most of this

Thus, certain apparent changes in the tonnage are being wielded from other ountries.

anagement of open-registry fleets are attributable to an increase in the accuracy of

(The identification rather than to any change in the factual situation. re-identification of true managers has not involved consequential changes in beneficial owners because the beneficial owners of the been identified by the 1979 study.)

vessels concerned had already

As far as possible, beneficial ownership has been identified by positive evidence, but in the absence of any evidence indicating a difference between true management and beneficial ownership the true manager has been assumed to be the beneficial owner also.

However, it is necessary to note the difficulty of identifying all of the shareholders who ultimately gain pecuniary benefits from the operation of open-registry ships and this is particularly relevant in the case of ships whose beneficial ownership has been traced back to Greek and Hong Kong shipping companies which appear

Much of the capital of these to be exercising full ship-owning responsibilities. shipping companies is understood to have been provided by overseas investors who have invested in Greek and Hong Kong shipping companies for the simple reason that these companies can in tum register vessels under open-registry flags, sometimes with

In such instances it has not been long-term charters back to the overseas investors. possible to pursue the identification of beneficial owners behind the Greek or Hong Kong companies.

1/ "Beneficial ownership of open-registry fleets: report by the UNCTAD secretariat" (20/222/Supp.1), which reviewed the situation as at 1 January 1978. Supplementary tables were also published in other reports by the secretariat, namely in "The maritime transport of hydrocarbons" (BD/222/Supp.3) on the beneficial ownership of tankers, and in "Review of maritime transport, 1978" (ID/3/0.4/162) on the true management and beneficial ownership of open-regista vessels, with a breakdown by flags of registration. Data were also reproduced in the Handbook of Intemations. Trade and Development Statistics. 1979 (ited Nations publication,

Sales Ho. E/S

5.2).

2/ is in the case of the previous report, this work was undertaken by

A. and P. Appledore (London) Limited, and this paper is based upon a report prepared for the secmepandat hy that