Section 247

It shall be a condition in every licence in respect of a North Borneo licensed ship that the ship is owned by a person or body corporate ordinarily resident in North Borneo,

Sarawak or Brunei that the licence shall become void if the ship or any share therein is transferred, mortgaged or charged to any person or body without the written permission of the Director.

No North Borneo licensed ship shall, unless express provision to the contrary is contained in her licence or unless such action is necessary due to stress of weather or other cause beyond the control of the master, proceed outside North Borneo.

Any master contravening subsection (3), and any person aiding or abetting such master, shall be guilty of an offence and shall be liable to a fine of five thousand dollars, and, in addition the licence of the ship may be revoked by the Director.