Integrates Flag State regulations into a ship's Safety Management System (SMS) to allow:

• an easily searchable digital format;
• regulatory changes to be immediately reflected in the SMS;
• procedures to be amended both to ensure compliance;
• a record of due diligence

Read our Case Study here.

Due Diligence in Business Transactions

Definition: In business transactions the due diligence process varies for different types of companies. The relevant areas of concern may include the financial, legal, labour, tax, IT, environment and market/commercial situation of the company. Other areas include intellectual property, real and personal property, insurance and liability coverage, debt instrument review, employee benefits and labour matters, immigration, and international transactions.*

*Gary M. Lawrence, Due Diligence in Business Transactions (Law Journal Press 1994, updated as needed). ISBN 9781588520661.

Within this definition lies the responsibility for shipping companies to be able to demonstrate they have taken adequate care for the safe, legal and environmentally responsible operation of their ship.

What a System like CompanyRegs means (in 'Due Diligence' Legal Terms) for your Business

Having your Safety Management System linked with the Flag State regulations means that:

• your management system will always comply with the law;
• if the law changes, it will show where and how you should amend your SMS;
• the SMS processes should then initiate the management changes to ensure that the procedures and resources to comply with the law are put in place.

In the event of illegal outcomes as a result of operations on your ship, your corporate exposure to legal sanctions are minimised because you have shown due diligence to creating a management system and the processes which comply with the law.

Due Diligence as a Criminal Defence

In criminal law, due diligence is the only available defence to a crime that is one of strict liability, i.e., a crime that only requires a 'guilty act' to be shown. Once the criminal offence is proven, the defendant must prove beyond a reasonable doubt that:

• they did everything possible to prevent the act from happening;
• it is not enough that they took the normal standard of care in their industry;
• they must show that they took every reasonable precaution.

For example, if your ship is responsible for the criminal act of causing marine pollution the only defence for your company is that of due diligence by proving that you complied with both the letter and spirit of the law.

Operational Benefits of CompanyRegs

The SMS can be formatted so:

• helps to consolidate 'best practices', company documentation and regulatory information whilst helping prevent accidents and reducing costs;
• helps organise crew safety management responsibilities with minimum overhead, enabling ship's officers can determine their individual responsibilities for each aspect of their ship's operation;
• the SMS becomes a dynamic and up-to-date shipboard system which allows feedback to company offices onshore so that the office is directly involved in responding to management issues on their ships. An example of the versatility of CompanyRegs is the ability to produce Enclosed Space Entry Permits;
• CompanyRegs can be synchronised between ship and shore by an advanced military-grade satellite communication system which also serves as a Company messaging service.

Installing CompanyRegs involves an appreciable amount of work in formatting the Company ISM system and is best undertaken by the ship manager's own technical staff, supported, by regs4ships experts.