Ministry of Justice, Measures for the Administration of Associations Between Law Firms of the Hong Kong and Macao Special Administrative Regions and Mainland Law Firms

Promulgated: November 30 2003
Effective: January 1 2004
Interpreting authority: Ministry of Justice
Applicability: "Association" means the joint operation between a Hong Kong or Macao law firm that has established a representative office in the Mainland and a Mainland law firm at the place where the representative office is located in accordance with the rights and obligations stipulated in the agreement to provide Hong Kong, Macao or Mainland legal services to clients (Article 2).

Main contents: The Procedures prohibit partnerships between Hong Kong or Macao law firms and Mainland law firms. During the period of association, the legal status, names and finances of both parties shall remain independent and they shall bear civil liability independently (Article 3). Article 5 sets out the application qualifications for association required of a Hong Kong or Macao law firm (Article 5). For instance the Hong Kong or Macao law firm shall have been engaged in substantial business operations for three years at its own or rented premises. The Mainland law firm on the other hand is required to have been established for three years, to have no fewer than 20 professional lawyers, and to be free of any administrative penalty or industrial sanction in the two years preceding the application. Branch offices of Mainland law firms are not allowed to apply to be a party of association (Article 6). A written association agreement shall be concluded and shall contain such contents as the term and business scope of the association, as well as the liability for breach of contract and resolution for disputes (Article 9). The term of association shall be not less than one year and may be extended upon consultation between the two parties (Article 10). The Hong Kong and Macao lawyers participating in the association business are not allowed to engage in Mainland legal affairs (Article 12). In the case that losses incurred by the client resulted from illegal practices or negligence in the course of the operation of an association, the party at fault shall bear, or both parties of the association shall share, the liability for compensation according to the association agreement (Article 17).
Related legislation: Mainland/Hong Kong Closer Economic Partnership Arrangement, Jun 29 2003 and Mainland/Macao Closer Economic Partnership Arrangement, Oct 17 2003