Source： LIAONING BANDCN LAW FIRM www.bandcn.com.cn
written by :Liu Jun
In reality, several natural persons usually jointly buy one ship for the ship is expensive and agree how to

operate, manage, profit and dispose the ship. Under the circumstance, part owners often face some

risks.



How to avoid risks when the jointly owned ship is affiliated to one company

When the jointly owned ship is planed to navigate in inland river, it is often affiliated to one company

which has qualification that its ship can be navigate in inland river. Under the circumstance, one or some

part owners dispose the jointly owned ship, other part owners’ right will be ruined and it can only claim

the loss against the former.



To avoid the risks, the part owners may refer to as follows:

Part owners become the shareholders of the affiliated company which has qualification of operation in

inland river.



Part owners should conclude one all-around and feasible agreement of jointly owning.

To carefully investigate and examine the affiliated company’s qualification.

To pay more attention to the affiliated company’s operation situation.

To timely take action when the risks possibly occur.

How to avoid risks when the jointly owned ship is registered to one foreign company and fly the

convenient flag.



Under the circumstance, if one or some part owners become the shareholders of the company, the other

part owners’ right will be possibly ruined. So the other part owners will face aforesaid risks.

To avoid the risks, the part owners may refer to as follows:

All part owners are the shareholders of the company.

If the aforesaid is not available, all part owners should conclude one all-around and feasible contract.

To pay more attention to the ship’s operation.

To timely take action when the risks will possibly occur.