The Liberian Registry has shown steady growth during 2001. During 2001 the
registry recorded a net gain of 1.2 million gt. Also during 2001, LISCR
US company which manages the registry, reported a steady uptake of its new
SEA electronic seafarers application service, which speeds documentation and
improves security. At the end of the year, the Liberian Government approved
major amendments to maritime and corporate laws, which will improve the
service offered to registry clients and underpin further growth. The
changes, made after extensive consultation with core registry users, combine
long-outstanding revisions to existing Liberian law with the introduction of
corporate vehicles designed to reflect the needs of a changing market,
particularly in relation to corporate structures.
On the maritime side the changes in the law and in regulations implement
international requirements into national law, reflect the independent status
of the Bureau of Maritime Affairs
- both matters which in practice have
already happened - and provide the facility for the registry to introduce
new services in relation to ship registration and mortgage recording.
The amendments exploit changes in technology permitting registration
ship and recordation of a mortgage to be made remotely, and for the record -
in the legislation referred to as the index - to be maintained and
reproduced electronically. The status of Liberia as the location of the
index, and of any documents registered under the Maritime Law
underlined, while permitting duplicate indices to be maintained in other
locations. Of real significance to both ship owners and banks granting
mortgages are the provisions for the recordation of a mortgage other than in
the location at which the index is physically kept, New York
. This will
eventually allow mortgages to be recorded in real time anywhere in the
In parallel with the changes to maritime law the Legislature has approved
the Electronic Transactions Law. This legislation contains the detailed
provisions, which establish the status of electronic communications
records, contracts made electronically, the integrity of documents and
reproductions and the security of signatures. In relation to international
business the Liberian Government has recognized the importance of compliance
with the standards of the model UN document on electronic transactions
combined with selection of the most secure method of authenticating
Other amendments to the Maritime Law -
* Clarify the noting of mortgage in relation to ships bareboat
chartered into Liberia and the status of the preferred mortgage recorded in
respect of a vessel which bareboat registers out of Liberia.
* Spell out the circumstances in which corrections to entries in the
index or in documents registered in respect of the mortgage may be made.
* Expand the form and the nature of charge or interest that may be
given the status of a preferred mortgage.
* Specify when a vessel may be de-registered notwithstanding that a
preferred mortgage is still in effect.
* Introduce the possibility of recording a mortgage on a vessel under
Asset protection is one of the principal motives for the use of Liberian
corporate structures. The Liberian Legislature
has enacted legislation with
this in mind. Amendments to the Business Corporation Act will give greater
flexibility, reduce some formalities, allow re-domiciliation and conversion
from and to other legal entities and generally bring the Act up to date with
the United State law on which it is based.
Importantly, in reflection of a policy decision, the amendments do not touch
the bearer share provisions and there are no plans to do so or to change the
non-resident tax status.