4

E. ASSOCIATIONS BETWEEN FOREIGN LAW FIRMS AND LOCAL FIRMS

1.

2.

The Committee has found this topic to be the most difficult to deal with, principally because of the wide variety of associations which can exist. At one extreme, for example, an association may amount to nothing more than an informal understanding that clients will be referred between firms in relation to particular types of legal work, or generally. At the extreme, associations could involve the associated firms working together so closely that it is difficult to differentiate such associations from partnerships, at least in practical if not legal terms.

other

The Law Society's principal concern with respect to associations has been that they could be used as a medium through which foreign law firms could practise Hong Kong law, using the "local" firm in the association as the means of doing so.

The Committee has come to the conclusion that it would be wrong to prohibit associations if means could be found to meet this concern. The Scheme proposes to do this by:-

the

requiring that the foreign law firms which enter into associations continue to observe restrictions outlined in paragraph D2 above;

=

requiring the partners of the local firm in an association, as well as the partners of the

foreign law associated, to

Hong Kong for

the Scheme;

firm(s) with which they are be the individuals responsible in compliance by the association with

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