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The Report proposed that the criteria should be amended so that they are objective, reasonable, non-discriminatory and standards-based. This is necessary for Hong Kong to fulfil its obligations as a member of the World Trade Organisation. The Administration has for some time been pressing the Bar Association for its suggestions for new criteria, but these were received only after the Bill was gazetted. The Administration is now studying the Bar Association's suggestions, with a view to introducing appropriate Committee Stage amendments to the Bill.

The Bill

I would now like to outline the main provisions in the Bill.

Clause 2 adds a new Part IIAA to the Legal Practitioners Ordinance relating to solicitor corporations. This new Part will implement the proposal in the Report on Legal Services that, subject to rules, solicitors should be permitted to incorporate their practices with either limited or unlimited liability. Given this proposed development, it is logical to permit foreign lawyers also to incorporate their practices, and clause 5 so provides. These two proposals follow recent changes to the law that permit accountants similarly to incorporate their practices.

Clause 7 of the Bill deals with interest on solicitors' clients' accounts. This provision implements the proposal in the Report on Legal Services that solicitors should be required to pay interest to clients, where it is reasonable to do so, in respect of clients' money held by the solicitor. The circumstances in which there will be such a requirement will be set out in rules to be made by the Council of the Law Society.

Clause 8 of the Bill relates to the proposed new status of Senior Counsel, which will, with effect from 1 July 1997, replace the title of Queen's Counsel. This provision will implement the proposal in the Report on Legal Services that the status of Queen's Counsel should (under a different name) be retained. I would add that the new section will not affect the existing system of appointing Queen's Counsel, which will continue until 30 June 1997. It will therefore be possible for one last batch of Queen's Counsel to be appointed before that date.

Clauses 9 to 13 of the Bill contain minor amendments to the Legal Practitioners Ordinance in the respect of the Barristers Disciplinary Tribunal. These amendments have been included to deal with practical problems that have emerged since the relevant provisions were enacted in 1992.