XN000022-1990-04-19 — Page 7

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THURSDAY, APRIL 19, 1990

LAW OF THE

"BECAUSE HONG KONG IS A COMMON

JURISDICTION, OUR COURTS ARE ABLE TO EXAMINE THE JUDGMENTS

SUPERIOR COURTS IN LIKE JURISDICTIONS, INCLUDING NEW ZEALAND, TO ASSIST THEIR DECISION MAKING.

"THIS MEANS THAT OUR LAW CONTINUE TO DEVELOP IN LINE WITH

11 MR MATHEWS SAID. ADVANCES MADE ELSEWHERE IN THE COMMON LAW WORLD,

HE SAID THE COMMON LAW HAD, OVER MANY YEARS, DEVELOPED A SOLID

AND RELATIONSHIPS

MUCH OF BODY OF PRINCIPLES GOVERNING COMMERCIAL THIS HAD FOUND ITS WAY TO HONG KONG.

SOME OF THESE PRINCIPLES HAD BEEN CODIFIED, AND IN EXTENDED, BY STATUTES.

SOME CASES

OTHER ON THE CHANGE OF LAW IN LINE WITH DEVELOPMENTS IN

MAJOR

MR FINANCIAL CENTRES,

MATHEWS SAID HONG KONG NOW REQUIRED MORE OPENNESS IN COMPANY MANAGEMENT.

HAS BEEN AMENDED ΤΟ

REQUIRE

THE

ORDINANCE "OUR COMPANIES DISCLOSURE OF DIRECTORS' INTERESTS IN CONTRACTS WITH THE COMPANY, WHILST THE MAKING OF LOANS TO DIRECTORS IS PROHIBITED, HE SAID.

TT

MR MATHEWS SAID WHILE THE COMMERCIAL SECTOR IN HONG KONG WAS ENACTED TO LARGELY GIVEN A FREE HAND, SELECTIVE LEGISLATION HAD BEEN IMPOSE PRUDENTIAL SUPERVISION OVER

SUCH AS THE SECURITIES INDUSTRY, BANKING AND INSURANCE.

ASPECT

AREAS

MR MATHEWS SAID ONE

OF THE COMMON LAW RELATING TO COMMERCIAL RELATIONSHIPS THAT WAS WORTH MENTIONING WAS ABOUT EXCLUSION CLAUSES.

BEEN LEFT "HISTORICALLY, THE CONTROL OF EXEMPTION CLAUSES HAS

THE TO THE COMMON LAW, AND

COURTS OF HONG KONG HAVE ADOPTED AN INCREASINGLY HOSTILE STANCE TO THE USE OF SUCH CLAUSES, ESPECIALLY CONSUMER CONTRACTS, HE EXPLAINED,

"

IN

THE HE SAID EXEMPTION CLAUSES WERE SOON TO BECOME

OF EXEMPTION CLAUSES DETAILED STATUTORY REGULATION UNDER THE CONTROL OF ORDINANCE WHICH WAS DUE TO COME INTO EFFECT ON DECEMBER 1 THIS YEAR.

SUBJECT

TURNING TO ANOTHER SOURCE OF COMMERCIAL LAW IN HONG KONG, MR MATHEWS SAID A LARGE NUMBER OF INTERNATIONAL AGREEMENTS AFFECTING COMMERCIAL RELATIONS HAD BEEN APPLIED TO HONG KONG.

TO HONG

ONLY APPLY "CURRENTLY, INTERNATIONAL AGREEMENTS CAN KONG WITH THE CONSENT AND AUTHORITY OF THE UNITED KINGDOM. FROM JULY 1, 1997, THE CONSENT AND

OF THE CHINESE GOVERNMENT WILL BE REQUIRED.

AUTHORITY

BEING "IN THE RUN-UP TO 1997, EXTENSIVE WORK IS

DONE BY THE SINO-BRITISH JOINT LIAISON GROUP TO ENSURE THAT THOSE INTERNATIONAL TO APPLY AGREEMENTS WHICH ALREADY APPLY TO HONG KONG SHOULD CONTINUE TO THE FUTURE HONG KONG SPECIAL ADMINISTRATIVE REGION," MR MATHEWS SAID.

/MR MATHEWS