With the greatest respect admiral, I think you are mistaken about the ship HMS Argosax: http://discoverygc.com/forums/showthread.php?tid=98336 as can be seen in this decree here the crew of the Argosax that formed a Mutiny against its former rogue captain were spared and their commanding officer given command of the Argosax and allowed to continue forthwith to serve Bretonia in said ship.
Argosax was never ordered to be melted down I quote:
"The crew of the HMS Argosax and her interim captain Jack Willis will be offered clemency following their arrest of their traitorous commanders and return of their vessel to Bretonian borders. The death sentence will instead be transmuted. In retribution for their crimes, all medals, and honours will be stripped from them. Captain Willis will retain command of his vessel, but his crew will be redistributed to separate warships across the Tau front." - unquote
Thus how can serving on this ship be illegal or the ship itself be illegal?
I had nothing to do with the original actions of the Argosax, but as I am currently aware it is a legal serving vessel and named so in the BAF Ship Registry.