18
be wishing to protect certain existing types of
chartering arrangements with off-shore companies, we consider it undesirable to introduce the element of equity participation, albeit that this is suggested only for the purpose of this proposed exception.
3.22.
In addition, it is doubtful whether the equity link would necessarily achieve the element of control which would be present if the chartering company was obliged to have its principal place of business in Hong Kong.
3.23.
In the same way that we suggest insisting on the legally accountable representative in paragraph 3.16 above in respect of a ship to be registered in Hong Kong on the new register, that requirement should remain even where the ship is chartered by demise. It must be clear that legal title to the ship involves legal liability for its activities and standards of construction, operation and safety. The objective is to firmly demonstrate the
'genuine link'.
Summary
3.18.
We recommend that the exercise of the genuine link as regards ownership of vessels on the new separate
No comments yet.
Private notes are available after approval.