be conferred on the Court to permit foreign law firms which meet certain criteria to practise in Hong Kong and that provision be made enabling such firms to employ, or take into partnership, Hong Kong solicitors. In relation to domestic law firms it will be proposed, for the reasons set out in paragraph 8, that they be put on equal terms with foreign firms and that provision be made enabling them to employ or take into partnership foreign lawyers. Provisions are proposed dealing with rules governing the practice of Hong Kong law, penalties for non compliance and transitional arrangements.
8
Currently a number of domestic law firms employ foreign lawyers as consultants in their practices. Although they are not permitted to sign correspondence or to share in profits they do assist these firms to advise on
to advise on foreign law. The possibility of formalising such arrangements and extending the proposals to cover domestic law firms who wish to take in as a partner a foreign lawyer was not addressed by Members when they considered the matter on 26 July 1988. The Administration considers that having
that having permitted foreign law firms to become multi-national practices it would be unfair and illogical to deny domestic law firms the same opportunity or to exclude such firms from a scheme of control designed to regulate the practice of foreign law by foreign lawyers. Proposals there fore to be made in the consultative document to permit domestic law firms to employ, or take in as partners, foreign lawyers. Advice of Members on this question will be sought at the conclusion of the consultation period.
9
are
The proposals to be set out in the consultative document are particularly formulated with the aim of meeting the concerns which have been expressed by the Law Society that foreign lawyers will be able to practise Hong Kong law either directly or indirectly through the supervision of Hong Kong solicitor employees or junior partners. Although the formulation of rules governing the practice of foreign law firms is largely a matter for the Law Society, detailed suggestions will be included in the consultative document which are intended to be of assistance to them. These will include a suggestion that a foreign lawyer practising in a foreign law firm should not enter into
into partnership with any Hong Kong solicitor who is of less than 10 years standing and that a foreign law firm should not be permitted to employ a Hong Kong solicitor of less than 5 years' standing to advise on Hong Kong law.
10
With the aim of
of ensuring that there is adequate supervision exercised and responsibility assumed at an appropriate level, it will be suggested that any foreign law firm employing a Hong Kong solicitor should have at least one such solicitor as а partner, who should direct his full attention to the affairs solicitors so employed.
of the firm, for every
three
such
CONFIDENTIAL