Capitol Hill, Monrovia, February 15, 2022: The House of Representatives has mandated its Committees on Judiciary, Maritime, Commerce & Industry, Health, Mines & Energy and Hydro-Carbon to review a Communication sent by President George Weah submitting for enactment and ratification of five pieces of legislative instruments.

The first piece of legislation is An Act to Amend and Restate Chapter 3: Preferred Ship Mortgages and Maritime Liens on Liberian Vessels, of the Liberian Maritime Law, Title 21, Liberian Code of Laws Revised.

The proposed amendments include, section 100. Registration and Recordation in the relevant index, which makes it clear that original mortgage instruments do not need to be submitted to the Registry for purposes of filing such instruments with the registry. It adds provisions to further strengthen circumstances affecting parties to a financing charter, an existing demise or bareboat charter, and a discharge of preferred mortgage maritime lien. It also makes clear among other things that (i) the instrument(s) which evidence the direct and /or contingent obligations secured by a mortgage or financing charter, and (ii) any agreements and other documents that are incorporated by reference into a mortgage or financing charter are not required to be attached to such mortgage or financing charter when such instrument is recorded by the Registry in order for such instrument to be enforceable under Liberian law.

The second piece of legislation from the President is An Act to Amend and Restate Chapter 30: Partnerships of the Associations Law, Title 5, Liberian Code of Laws Revised.

Chapter 30, or the partnership Act has been fully revised and tailored to modernize the partnership Act rendering it highly competitive, more liberal and customer-friendly. The communication is quoted as saying the amended partnership Act meets the standards for transparency, effective exchange of information for tax purposes, combating of anti-money laundering and terrorism financing established by international multi-governmental organizations such as the OECD (Organization for Economic Corporation and Development) and the FATF (Financial Action Task Force), aiming to preserve Liberia’s Compliant status with these supervisory bodies and assist in avoiding negative outcomes. Some of the Amendments include, i.a. Adoption of Delaware Corporation and Business Entity Laws in line with the amendment to the BCA; Provisions detailing execution, filing, amendment, cancellation etc of any certificates filed by a partnership; Adoption of BCA and OECD standards on accounting records and ownership information record-keeping requirements, records retention and the Registry’s right to inspection; Provisions detailing partner’s dissociation and winding up of partnership business and affairs.

The third legislation captured in the President’s communication to the House is “An Act to Amend and Restate Chapter 31: Limited Partnership, of the Associations Law, Title 5, Liberian Code of Laws Revised”.

Chapter 31, or partnership Act has been fully revised and tailored to modernize the Act and render it in compliance with international OECD and FATF standards. Some key Amendments include, i.a., Expansion of Adoption of Delaware Corporation and Business Entity Laws; Provisions detailing formation, merger and consolidation of limited partnerships; Reinforcement of the Registered Agent’s Anti-Money Laundering responsibilities; Additional subchapters on limited partnership finance; distribution and withdrawals; assignment of partnership interests; and provisions detailing dissolution of a limited partnership, winding up and distribution of assets.

The fourth legislation is “An Act to Amend Sub-sections 1.2(q), 1.3.5, 1.4.3, 1.8, 6.7.2 and 14.10.1.14 of An Act to further Amend Part I (The Business Corporation Act) of the Associations Laws, Title 5, Liberian Code of Law Revised.

The amendment notes inadvertent language in the Business Corporation Act BCA published on April 6, 2020, and aims to correct several provisions as initially intended, including, i.a., Amendment of definition of “Public Company”; Amendment of provision on “Adoption of Delaware and Business Entity Laws” to state that the BCA shall be applicable and construed to make the laws of Liberia harmonious with the laws of the state of Delaware, and giving the courts of Liberia discretion in application of non-statutory corporation and business entity law of Delaware in cases when the laws of Liberia are silent; and Amendment of provision on “Execution” of instruments to state that in case of non-resident entities, evidence of a signatory’s authorization needs not be in writing nor filed with the Registrar.

The last legislation from the President’s Communication is Hong Kong Convention for the safe Environmentally Sound Recycling of Ships, 2009 (Hong Kong Convention).

According to the President via his Communication states that the ratification of the Hong Kong convention will be a legally binding instrument aimed to elevate Liberia’s standards in ship recycling and ensure that the process of ship recycling does not pose risks to human health and safety, and to the environment. The life cycle approach, the legally compelling measures, and comprehensive applicability of recycling facilities are major features of the Hong Kong Convention, and it would be advantageous for Liberia to accede to the Convention.

The communication further states that the accession of Liberia would increase the total contracting Party States to 17, representing over 40percent of World merchant shipping by gross tonnage, which would satisfy the first criteria for entry into force. The second criteria for entry into force, sufficient recycling capacity of the contracting States, will depend on the ratification, acceptance or approval of one or more of the major recycling States, such as India, Pakistan, Bangladesh, and China.

Plenary’s decision was triggered following a motion proffered by Grand Bassa County District #5 Representative Thomas Goshua that the committees thoroughly review the five pieces of legislations and report to the body next week Thursday.