PART IIA REGISTRY
[Whole of Part IIA & B were inserted vide A 393/77 and
applicable throughout Malaysia][Sections 58A, 58B & 58C inserted vide
A895/1994)
Qualification of Malaysian Ship.
11. (1) Subject to subsection (1B), a ship shall not be
deemed to be a Malaysian ship unless it is owned wholly by persons of the
following descriptions, namely -
(a) Malaysian citizens; or
(b) corporations which satisfy the following requirements:
(i) the corporation is incorporated in Malaysia;
(ii) the principal office of the corporation is in Malaysia;
(iii) the management of the corporation is carried out mainly in
Malaysia;
(iv) the majority, or if the percentage is determined by the
Minister under subsection (1A) then the percentage so determined, of
the shareholding, including the voting share, of the corporation is
held by Malaysian citizens free from any trust or obligation in favour
of non-Malaysians; and
(v) the majority, or if the percentage is determined by the
Minister under subsection (1A) then the percentage so determined, of
the directors of the corporation are Malaysian citizens.
(1A) The Minister may, by notification in the Gazette, determine -
(a) the percentage of the shareholding for the purpose of
subparagraph (iv) of paragraph (b) of subsection (1); and
(b) the percentage of the directors for the purpose of subparagraph
(v) of paragraph (b) of subsection (1).
(1B) The Minister may, if he thinks it fit, prescribe other
requirements in addition to the requirements prescribed in subsection (1).
(A 603/84)
(2) The corporation shall produce documents relating to shareholding in
the corporation as may be required by the Registrar (A603/84)
of Ships.
(3) For the purpose of this section -
`voting share', in relation to a corporation, means an issued share of
the corporation, not being -
(a) a share to which, under no circumstances there is attached, a right
to vote;
(b) a share to which there is attached a right to vote only
(A603/84) in any one or more of the following circumstances -
(i) during a period in which a dividend (or part of a dividend) in
respect of the share is in arrears;
(ii) upon a proposal to reduce the share capital of the corporation;
(iii) upon a proposal affecting the rights attached to the share;
(iv) upon a proposal to wind up the corporation;
(v) upon a proposal for the disposal of the whole of the property,
business and undertakings of the corporation;
(vi) during the winding up of the corporation.
