HK's rapid economic growth underpinned by legal system
The remarkable maturing of the legal system in Hong Kong over the last 15 to 20 years is both a reflection of and a requirement imposed by Hong Kong's quantum leap from sleepy entrepot for China trade to economic world power, the Solicitor General, Mr Daniel Fung, QC, told a group of dispute mediators this (Thursday) evening.
"It forms also a crucial factor for Hong Kong remaining the jurisdiction of choice for international businesses and multinationals seeking to locate regional headquarters in East Asia and the Western Pacific," he said.
Addressing the Hong Kong International Arbitration Centre Mediation Group at its annual dinner this evening, Mr Fung pointed out that an efficient and reliable legal system gave contracting parties the assurance that their agreements would be honoured because they knew that if they were not, they would have a ready and effective remedy.
"Hong Kong is where it is today with its development of Alternative Dispute Resolution as a consequence of rapid economic development," he added.
He noted that Hong Kong's current arbitration law was a dual system, with one set of provisions applying to domestic arbitrations and the UNCITRAL. Model Law on International Commercial Arbitration applying to international arbitrations, after this model law was incorporated in the Arbitration Ordinance in 1989.
He pointed out that in recent years, it had become apparent that improvements could be made to the ordinance, and a committee of the Hong Kong International Arbitration Centre was set up to consider what, if any, amendments were required.
"The committee has been considering the possibility of introducing a unitary system of arbitration in Hong Kong, that is one system that would apply to both domestic and international arbitrations,
"No firm conclusions have yet been reached on this issue. The committee has, however, identified a number of areas in the existing dual system which could be improved. The Attorney General has agreed to prepare and promote a bill to implement the committee's recommendations in this respect," Mr Fung said.
The proposed legislation indicated yet again the Government's commitment to assist in maintaining Hong Kong's position as a leading centre for arbitration and the same was true for other types of Alternative Dispute Resolution, including mediation, he said.
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