Legislative Amendments for Implementation of Outcome Related Fee Structures for Arbitration
ISSUING AUTHORITY:
Government of Hong Kong SAR
DATE OF GAZETTAL:
March 25, 2022
On March 25, 2022, the Arbitration and Legal Practitioners Legislation (Outcome Related Fee Structures for Arbitration) (Amendment) Bill 2022 was gazetted. By this bill, the Government of Hong Kong SAR seeks to introduce legislative amendments to the Arbitration Ordinance (Cap. 609) and the Legal Practitioners Ordinance (Cap. 159), with a view to providing validity, enforceability, and appropriate measures and safeguards in relation to certain agreements adopting outcome related fee structures for arbitration (“ORFSA”). The proposed amendments also aim to lift prohibitions by the common law doctrines of maintenance, champerty and barratry.
By permitting the making of conditional fee agreements, damages-based agreements or hybrid damages-based agreements between a lawyer and the client, the introduction of ORFSA will allow Hong Kong to actively respond to the expectation of arbitration parties for flexible fee arrangements, help preserve and promote Hong Kong’s status as a leading centre for international legal and dispute resolution services in the Asia-Pacific region, enhance access to justice and enable Hong Kong's arbitration services to advance with the times. This will attract and facilitate more parties to choose Hong Kong as a seat of arbitration and to resolve their disputes in Hong Kong.
References:
Arbitration Ordinance (Cap. 609);
Legal Practitioners Ordinance (Cap. 159)
Hong Kong's First SPAC Listing – Aquila Acquisition Corporation
ISSUING AUTHORITY:
Hong Kong Exchanges and Clearing Limited (“HKEX”)
LISTING DATE:
March 18, 2022
On March 18, 2022, Aquila Acquisition Corporation (“Aquila”), a special purpose acquisition company (“SPAC”) co-founded by CMB International and AAC Management Holding Ltd., made its trading debut on the Main Board. Aquila has become the first company in Hong Kong to make an IPO using the new SPAC listing mechanism.
Established in 2021, Aquila is registered in the Cayman Islands. Aquila intends to concentrate its efforts on one or more target companies in the new economy sectors (such as green energy, life sciences and advanced technology and manufacturing) in Asia, with a focus on China. Under the new Hong Kong SPAC regime, it will have two years to announce a merger target and three years to complete a merger.
A SPAC is an issuer with no operating business, which raises funds through its listing for the purpose of acquiring a business (a De-SPAC Target) at a later stage (a De-SPAC Transaction), within a pre-defined time period after listing.
The Stock Exchange of Hong Kong Limited introduced the new listing regime for SPACs in Hong Kong in January 2022. As at March 17, 2022, HKEX had received ten SPAC listing applications, demonstrating keen market interest and strong demand for this new listing route.
References:
HKEX’s Press Release titled “HKEX Welcomes First SPAC Listing”;
Consultation Conclusions on Special Purpose Acquisition Companies
Mainland Judgments in Matrimonial and Family Cases (Reciprocal Recognition and Enforcement) Ordinance Came Into Effect
ISSUING AUTHORITY:
Government of Hong Kong SAR
DATE OF COMMENCEMENT:
February 15, 2022
On February 15, 2022, the Mainland Judgments in Matrimonial and Family Cases (Reciprocal Recognition and Enforcement) Ordinance (Cap. 639) (“Ordinance”) came into operation. The Ordinance was enacted based on the Arrangement on Reciprocal Recognition and Enforcement of Civil Judgments in Matrimonial and Family Cases by the Courts of the Mainland and of the Hong Kong SAR (“Arrangement”).
The Ordinance and the Arrangement provide solutions to the historical difficulties faced by cross-border families by offering a more costs and time effective mechanism for recognising and enforcing matrimonial and family judgments between the two jurisdictions.
The Ordinance established new mechanisms in respect of the following three main types of applications:
(1) Registration in Hong Kong of specified orders or judgments (i.e. care-related orders, status-related orders and maintenance-related orders) made in Mainland given in matrimonial or family cases;
(2) Recognition in Hong Kong of Mainland divorce certificates; and
(3) Application for certified copy of and certificate for Hong Kong judgments given in matrimonial or family cases, for the same to be recognised and enforced in Mainland.
These new mechanisms reduce the need for parties to re-litigate the same dispute in both the Mainland and Hong Kong courts, thereby saving parties’ time and costs and relieving their emotional distress. They also better protect parties' rights by providing convenient and timely access to effective judicial relief in Mainland and in Hong Kong.
References:
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