Structuring Vessel Purchase In Malaysia

Introduction

This article seeks to explore the various points of consideration for Buyers and Sellers in the sale and purchase of a Vessel in Malaysia which consists of inter alia, the requisite procedures to be followed before a transfer of ownership can be completed. The sale and purchase of a Vessel are effected by two main agreements, namely the sale and purchase agreement which is commonly known as a Memorandum of Agreement ("MOA"), and the Bill of Sale ("BoS") which is the instrument to effect the transfer or registration of ownership of a Vessel.

Both documentations are distinct. The MOA is an agreement between the Buyer and the Seller for the sale and purchase of the Vessel; whereas, the BoS is a form of certificate to certify the successful purchase of the Vessel and transfer of ownership from the Buyer to the Seller.