In this paper, the existing criteria of stability for ships both intact and with damage are reviewed from a critical point of view. It is found desirable to develop a time domain simulation procedure that allows a deeper analysis of the dynamic transient phases of the motion, especially in damaged conditions. At the same time, the action of a regular train of waves from arbitrary direction and the sloshing in the flooded compartment is considered explicitly. The possible consequences for the case of a RoRo passenger ship are indicated.