What the MYBA charter agreement says about the APA, and what MYBA's own rules say about commissions

Many people in yachting have a view about what the MYBA charter agreement says, and about what MYBA's rules require of its members. Few have read the text. This page quotes it, and tells you which version each quotation comes from, so you can check it for yourself.

Please read this first. We could not find the current (2023 to 2026) MYBA charter agreement text published by MYBA, so the clauses below come from the 2017 specimen (hosted by brokerage websites) and the 2009 sample (on MYBA's own site). The current version may differ. The MYBA rules quoted are the versions published on MYBA's site, dated 2005 to 2006 (internal rules) and 2009 (statutes), and may have been updated since. We have only quoted what we have read in the documents. If you hold a current version, tell us and we will update this page.

The APA in the charter agreement (Clause 8, "Operating Costs")

The standard agreement provides for the charterer to pay an Advance Provisioning Allowance, and says how it is spent. In the 2017 specimen, Clause 8 reads:

"Having paid the Advance Provisioning Allowance (APA) via the Broker's Account, the CHARTERER shall be advised by the Captain, at intervals, as to the disbursement of the APA and shall, if the balance remaining becomes insufficient in the light of current expenditure as supported by receipts, pay to the Captain a sufficient sum to maintain an adequate credit balance. The OWNER shall ensure the Captain will exercise due diligence in the expenditure of the APA. Any charges or fees related to the transfer of the APA to the Vessel are for the CHARTERER's account."

The same Clause 8 deals with the final account:

"Prior to disembarkation at the end of the Charter Period, the Captain shall present to the CHARTERER a detailed account of expenditure, with as many supporting receipts as possible, and the CHARTERER shall pay to the Captain the balance of the expenses or the Captain shall repay to the CHARTERER any balance overpaid, as the case may be."

Source: the specimen MYBA 2017 e-Contract (footer "Charter Agreement Revised 2017"), hosted on third-party websites, with the same text on each: charteranddreams.com and ionian-ray.com. The wording about the owner ensuring the captain exercises due diligence also appears in a sample on MYBA's own site marked "Charter Agreement Revised 2009", so it is not a recent addition: it has been in the standard form for many years.

Clause 20 of the same forms deals with who pays the APA and to whom, and Clause 24 deals with brokers' commission, which in the 2009 and 2017 forms is payable by the owner on the charter fee and earned on signature.

MYBA's guidance to captains

MYBA's published guidance to captains ("APA & Reporting of Charter Accounts", revised April 2018) says:

"The Captain is answerable directly to the Charterer (or, if requested by the Charterer, the Broker) for the disbursement of the Advance Provisioning Allowance (APA) and should ensure that this is spent in a responsible manner, with proper regard as to its value. The Captain is also accountable for any funds disbursed by any member of his crew."

It goes on to say that the captain should keep the charterer informed of the accounts, and present "a statement of account showing the disbursement of the APA with all supporting receipts".

Source: myba-association.com (MYBA document, guidance only, not contract text).

MYBA's rules on commissions

The MYBA Internal Rules and Regulations, Article 4 ("Remunerations", "Charging of commissions"), as published on MYBA's site and marked as updated in 2005 and 2006, say:

"Members should only receive one commission in a transaction. Receiving commissions from more than one party in a transaction, unless fully declared to all parties, is unacceptable."

The same Article says commissions are payable in accordance with the terms and conditions of the current MYBA sale and purchase agreement and the current MYBA charter agreement.

Source: myba-association.com. This is an old version, and MYBA may have replaced it. We have not found a newer one.

MYBA's rules on ethics

The MYBA Statutes (2009 version) list as an aim:

"To establish and maintain high standards in terms of professional ethics and professional rules and within this framework define a Code of Ethics which will apply to all members."

The Internal Rules (Article 7) provide:

"Any Member who has been found by the Board's decision failing to comply with the Protocol or to have acted unethically or unprofessionally may be subject to suspension or expulsion from the Association."

Sources: Statutes and Internal Rules.

What we could not find

• The current charter agreement. The 2025 revision is reported by brokers' commentary to add know-your-client and sanctions clauses. We could not read the text.
• The "Code of Ethics" the Statutes say will be defined. We could not find it.
• Any MYBA statement on bribery or anti-corruption. We found none in the documents we read, and one broker's commentary on the 2025 contract says the same.
• Whether the commission rule above is still in force in the same terms.

Reading it fairly

These texts do not mention supplier commissions to brokers, hidden or otherwise, and it is not our place to say what MYBA intended by the words it chose. What the texts do say is that:

• the captain is accountable for the APA and must account for it with receipts, and the owner must ensure the captain exercises due diligence in spending it;
• a MYBA member who receives more than one commission in a transaction must have it fully declared to all parties, and otherwise it is "unacceptable"; and
• MYBA's own statutes commit it to high standards in professional ethics, and its rules allow it to discipline members who act unethically.

Readers can apply those words to the question of what is, and is not, acceptable. See Commission or kickback? for the line we draw.

General information, not legal advice. See the disclaimer.