termed as a registered owner holds absolute right over the vessel and whether the
registered owner is a “natural person”
35 or a “legal person”,
36 this does not always
indicate “who actually owns the ship and where that person . . . might be located”.
37
This might be an issue when it comes to owner identification in vessel abandonment
situations. Despite the drawbacks concerning owner identification, from an ownership context registration is considered as prima facie evidence of the owner’s title to
the vessel.
38 It also recognizes and shields the owner’s rights in rem,
39 and it serves
as conclusive evidence of the nationality of the vessel. The word “registration”
points to the entry of facts and relevant information into formal public records,
and every flag State is under an obligation to keep a register of all ships flying its
flag.
40 Generally speaking, documentation, flag, nationality and registration are
considered as bearing the same connotation.
41 Similar to a corporation, a ship is
notionally divided into 64 shares or parts,
42 and the names of the co-owners and joint
owners are entered into the register.
43 Whether it is an individual, joint owners or
co-owners, registration creates a natural link between the ship and the owner. If there
is no explicit declaration of dereliction, unilateral transfer or voluntary transfer by
any of those legal persons, then they continue to remain as owners through any
vicissitudes of life.
44
are held by the beneficial owner, which could be a company or an individual. 4 Management
company. Day-to-day management of the ships is carried out by another company established for
this purpose. Usually this company is located in a convenient shipping centre such as London or
Hong Kong.” In short, in closed registries the beneficial owner is relatively traceable, while on the
other hand, in open registries the beneficial owner hides behind Holding companies and/or
Management companies. See also Khee-Jin Tan, ibid (2005), p. 34 § 2, where the author states
that “. . . controversial arrangements exist whereby a ship can be owned by a company incorporated
with the sole and explicit purpose of owning that ship. By virtue of the recognition of companies as
separate entities in most legal systems, these so-called ‘one-ship’ or ‘two-dollar’ companies –the
latter term referring to the typical minimum amount placed as shareholding in a company owning to
no other assets – effectively shields the ‘real’ beneficial owner(s).
35 A natural person is a person who has a legal personality, in other words—an individual human
being.
36 A legal person can be a business entity or a public organization.
37 Gold et al. (2003), p. 53.
38 Reg v Bjornsen (1865) 12 TR 473. This case shows that inscription can be regarded as a strong
evidence.
39 Ibid.
40 Ready (1994), p. 6.
41 While “documentation” is the granting and evidencing the entitlement of the ship owner to fly the
national flag, the “flag” is the external demonstration of the nationality of the vessel and “nationality” saves a vessel from floating in legal vacuum—“registration” is the conferment of nationality
on a ship.
42 Hill (2003), p. 2. Hills explains that the reason behind this division is unknown. A reason could be
that this division makes the dealings and transfer processes of ships simple and easy.
43 Gold et al. (2003), p. 154.
44 Tiberg (2004), p. 208.
An Exposé of Canadian “Abandoned Vessels &. . .
349
registered owner is a “natural person”
35 or a “legal person”,
36 this does not always
indicate “who actually owns the ship and where that person . . . might be located”.
37
This might be an issue when it comes to owner identification in vessel abandonment
situations. Despite the drawbacks concerning owner identification, from an ownership context registration is considered as prima facie evidence of the owner’s title to
the vessel.
38 It also recognizes and shields the owner’s rights in rem,
39 and it serves
as conclusive evidence of the nationality of the vessel. The word “registration”
points to the entry of facts and relevant information into formal public records,
and every flag State is under an obligation to keep a register of all ships flying its
flag.
40 Generally speaking, documentation, flag, nationality and registration are
considered as bearing the same connotation.
41 Similar to a corporation, a ship is
notionally divided into 64 shares or parts,
42 and the names of the co-owners and joint
owners are entered into the register.
43 Whether it is an individual, joint owners or
co-owners, registration creates a natural link between the ship and the owner. If there
is no explicit declaration of dereliction, unilateral transfer or voluntary transfer by
any of those legal persons, then they continue to remain as owners through any
vicissitudes of life.
44
are held by the beneficial owner, which could be a company or an individual. 4 Management
company. Day-to-day management of the ships is carried out by another company established for
this purpose. Usually this company is located in a convenient shipping centre such as London or
Hong Kong.” In short, in closed registries the beneficial owner is relatively traceable, while on the
other hand, in open registries the beneficial owner hides behind Holding companies and/or
Management companies. See also Khee-Jin Tan, ibid (2005), p. 34 § 2, where the author states
that “. . . controversial arrangements exist whereby a ship can be owned by a company incorporated
with the sole and explicit purpose of owning that ship. By virtue of the recognition of companies as
separate entities in most legal systems, these so-called ‘one-ship’ or ‘two-dollar’ companies –the
latter term referring to the typical minimum amount placed as shareholding in a company owning to
no other assets – effectively shields the ‘real’ beneficial owner(s).
35 A natural person is a person who has a legal personality, in other words—an individual human
being.
36 A legal person can be a business entity or a public organization.
37 Gold et al. (2003), p. 53.
38 Reg v Bjornsen (1865) 12 TR 473. This case shows that inscription can be regarded as a strong
evidence.
39 Ibid.
40 Ready (1994), p. 6.
41 While “documentation” is the granting and evidencing the entitlement of the ship owner to fly the
national flag, the “flag” is the external demonstration of the nationality of the vessel and “nationality” saves a vessel from floating in legal vacuum—“registration” is the conferment of nationality
on a ship.
42 Hill (2003), p. 2. Hills explains that the reason behind this division is unknown. A reason could be
that this division makes the dealings and transfer processes of ships simple and easy.
43 Gold et al. (2003), p. 154.
44 Tiberg (2004), p. 208.
An Exposé of Canadian “Abandoned Vessels &. . .
349