2 owners, part 1 registration

[david_bagshaw]

One for the brokers perhaps?

What is the difference between shares of the ship held outright and shares held jointly?

does the jointly refer to somebody not on the register? or jointly with a lender ?

If I was to aquire a boat with another, and putting in half each, do we declare 32 shares each outright, or shared?

many thanks

 

[Searush]

No technical knowledge, but I don't see anything other than 32/64ths each being sensible. Ask the registration people (MCA?) in my experience they are generally very helpful.

 

[rhumlady]

Yep you split the shares to suit the share in the boat, 32/32, 24/40 or what ever percentage each person owns. That was the whole reason for the shares but don't ask me how they came up with 64 shares.

 

[Tranona]

64 shares is historic, going back to the days before limited companies etc where money was raised from a number of people to finance ships, so they were sold in shares of 64.

Each owner owns shares in relation to the amount of the purchase or building cost they contributed and can be sold independently of the other shares. So if you are buying a boat that has 2 or more owners, all have to agree to sell to you, or you end up with minority owners.

 

[ean_p]

Also I think but stand to be corrected, on the demise of one share holder then his share goes to the other owners and not to his estate!

 

[westernman]

Also I think but stand to be corrected, on the demise of one share holder then his share goes to the other owners and not to his estate!

Correct - in the case of the jointly owned shares.
Much better like this IMHO.

 

[Tranona]

Also I think but stand to be corrected, on the demise of one share holder then his share goes to the other owners and not to his estate!

But not if they are owned separately. Similar to the distinction between "tenants in common" and "joint tenants" in property.

 

[PCUK]

64 was chosen as it can be divided in many different ways.

 

[david_bagshaw]

Also I think but stand to be corrected, on the demise of one share holder then his share goes to the other owners and not to his estate!

thank you all but the above was particularly useful.

 

[Tranona]

thank you all but the above was particularly useful.

While that is strictly correct, it would be unusual to have a syndicate owned boat where ownership was joint - for that very reason, the individual contributors do not have full title for their share. It is much more common to have Co-ownership where each party has title to their share and if they die it passes to their heirs, not to the other members. Co-ownership can be easily established by way of a written agreement, or registration of title on the Part 1 register. There may well be constraints on what individual partners can do with their shares, and this would be covered by a syndicate agreement. For example the heirs may be required to sell the share back to the syndicate (or at least give first refusal) probably at a price under prescribed conditions.

I am co-owner of two different boats. The first is with another unrelated person and we each own 32/64 and have that registered. The second boat is shared ownership with my wife and is not registered, but both our names were on the contract and Bill of Sale and her interest is recorded on the insurance policy. It is not registered but we have an agreement that we each own half - although sort of irrelevant as we have reciprocal wills.

There are some useful downloads on the RYA site on the subject of syndicate ownership which you might find useful.

 

[Kurrawong_Kid]

Also I think but stand to be corrected, on the demise of one share holder then his share goes to the other owners and not to his estate!

As far as I recall having once been a "joint owner", if one partner dies the ownership automatically passes to the other owner, and one partner cannot sell his/her share unilaterally. Otherwise the 64 shares are recorded according to proportion and may be sold independently i.e owner "A" 48 shares owner"B" 16 shares. Either can sell their shares.