Legal Framework of Business in Hong Kong - Assignment Example

Legal Framework of Business (Hong Kong) LEGAL FRAMEWORK OF BUSINESS (HONG KONG) Research Academia APA style Synopsis Legal framework of Hong Kong is supportive of business and commerce. Global investors are still free to invest there and reap profits without worries. There are simple legal framework, soft taxation, almost no customs duties and no non-tariff barriers. There is emphasis on simple rule of law and fair market, without barriers of access to the markets by foreign business and capital flow in or out of Hong Kong. There are strong legal frameworks on many relevant commercial subjects to facilitate business promotion at ease such as: Electronic Transactions Ordinance in 2000 to promote electronic commerce; section 85 of the Crime Ordinance (cap.200) section 19 of the Theft Ordinance (cap 210) to prevent misuse of computers; voluntary recognition system applicable on all Certification Authorities and the director of Information Technology services with power to revoke or suspend the recognition of a certification authority, the supervision of Hong Kong Special Administrative Region (HKSAR) to supervise the financial transactions and maintain its credibility; Hong Kong Monetary Authority (HKMA), the Securities and Futures, Commission (SFC), the Office of the Commissioner of Insurance (OCI) and the Mandatory Provident Fund as the principal regulatory authorities and the legal bodies in Hong Kong to regulate banking, securities and futures, insurance and retirement schemes industries respectively and finally the Hong Kong's Prevention of Bribery Ordinance to check corruption in business transactions. There are, however, blames hurled on the legal systems not to prove adequate to support the image of Hong Kong to be the international center of commerce the major being the laws on labor that can't protect them from being exploited. Legal frame work of business (Hong Kong) Hong Kong is Asia's main trading hub and one of the world's most open economies.. There are simple legal framework, soft taxation, almost no customs duties and no non-tariff barriers. One third of China's external trade goes through Hong Kong, and re exports account for 92% of Hong Kong total exports. ( www.legal). Hong Kong has a responsible'government that maintains a well-established legal system and a sound financial system. (Hong Kong Business) by Christine Genzberger - 1994 Legal Framework for e-commerce: Electronic Transactions Ordinance in 2000 was promulgated to provide legal framework to e-commerce in Hong Kong.1. This ordinance was aimed to promote the legal framework and trusted environment for the conduct of electronic transactions in the country.. (PP89 90AIC Research and Public Policy Series) Internet fraud is becoming a common problem today. Legal problem comes while tackling this issue because of multiplicity of rules present in various jurisdiction and also that these rules are complex contradictory and not clear to be interpreted easily. Hong Kong has its own criminal laws pertaining to misuse of computers under section 85 of the Crime Ordinance (cap.200).2 Offence of falsification of bank computer records carries a penalty of life imprisonment. 10 year sentence may be imposed for the offence committed for false accounting by falsifying computer records under section 19 of the Theft Ordinance (cap 210).3. There are other provisions of these laws to cover damage to computers and unlawful interference with computers ( Urbas 2001) PP89 90 AIC Research and Public Policy Series) Voluntary recognition system: Hong Kong is the only country in Asia to have voluntary recognition system applicable on all Certification Authorities (CAs). Only those who have achieved certain objective standards are recognized. Activities of CAs and their relationship with their clients are, however, governed by common law. The director of Information Technology services has power to revoke or suspend the recognition of a CA if it fails to operate in accordance with the 'certification practice statement' or fail to comply with any provision of Electronic Transactions Ordinance. (www2.warwick.ac.uk) International Financial Center: Hong Kong Special Administrative Region (HKSAR) emphasis on simple rule of law and fair market, simple taxation without barriers of access to the market by foreign business and capital flow in or out of Hong Kong to maintain the international image of Hong Kong. Hong Kong Monetary Authority (HKMA), the Securities and Futures, Commission (SFC), the Office of the Commissioner of Insurance (OCI) and the Mandatory Provident Fund are the principal regulatory authorities in Hong Kong a to regulate banking, securities and futures, insurance and retirement schemes industries respectively. Corruption Prevention measures: Corruption prevention guidelines are administered by ICAC to prevent corruption in business dealings and investment from across the border mainly from mainland china arising out of differences in the legal systems of two entities. The guidebook is geared to the interest of small and medium enterprises (SMEs). Under Hong Kong's Prevention of Bribery Ordinance ICAC is empowered to investigate acts of corruption in the private sector taken place anywhere in Hong Kong.. The following case study will highlight the importance of ICAC A lady manager of a US based company cheated over one million Hong Kong dollars (US$14700) in course of sourcing merchandises on behalf of the company by inflating the invoice amount. The corruption was leaked. The ICAC commenced investigation on being complained. With the assistance of the supreme People's Procuratorate and the counterpart in Guangdong, ICAC investigators initiated interviewing number of witness on the mainland and gathered sufficient evidence for prosecuting the culprit. In course of trial in Hong Kong, five witnesses from mainland came to testify against the manager. She was found guilty by the court and convicted for defrauding her employer. Business rebates and commissions are not uncommon but in Hong Kong but that must be legal or would warrant criminal liabilities and sanction. Employee accepting advantages for the work done by him without the consent of the employer will breach the prevention of bribery ordinance and therefore is liable to be prosecuted... Anyone offering advantages under such circumstances is also liable to committing a bribery offence. (Concept and legal framework of the anti-graft laws in Hong Kong and the Mainland with illustrative cases) Credit Provision Regulation: The Hong Kong law allows business to grant non possessory security right in a single category of revolving moveable assets. Any financial company can accept moveable assets as collateral while keeping the possession with him. Secured creditors have absolute priority to their collateral outside bankruptcy procedures. The law authorizes parties to have out of court settlement in case involved. There are strong legal frameworks on many relevant commercial subjects to facilitate business promotion at ease. (The Getting Credit in Hong Kong, China Details - Doing Business) There are some fingers raised on the provision of proper legal framework in Hong Kong. Hong Kong does not have proper legislation on working hours of working class. Workers can be exploited up to maximum hours for the business. Whereas this enhances the production hours in the factories and businesses but it ultimately becomes unproductive for workers. Hong Kong ITUC General Secretary Guy Rider has urged the authorities in Hong Kong to support efforts by the mainland authorities to improve conditions and not to exploit workers. There is erosion of freedoms and reliable laws that degrades the image of Hong Kong as international Center of commerce. (ITUC-CSI-IGB) Asia Times Online. Footnotes 1 Ordinance No.1 of 2000. 2 Ip I, 2000 'Electronic Signature Recognition Bill Opens Door for e-commerce' Hong Kong Standard 6 January. 3. Ip I, 2000 'Electronic Signature Recognition Bill Opens Door for e-commerce' Hong Kong Standard 6 January. References 1.www.legal india.smetoolkit.org/india/en/content/en/564/Hong-Kong-Overview 2..Hong Kong Business: by Christine Genzberger - 1994 - Business & Economics - 306 pages .Web Hong Kong ICAC legal framework of the. anti-graft laws. in Hong Kong and the Mainland with ... Jul 2008, Issue No.6 visited on 26th Nov 2.www.icac.org.hk/icac/pdf/post0807e.pdf File Format: PDF/Adobe Acrobat - View as HTML visited on 27th Nov 3. PP89 90 AIC Research and Public Policy Series 4. Electronic Law Journals - JILT 2000 (1) - Wu ... Ordinance - Building a Legal Framework for E-commerce in Hong Kong .... unique in that it creates a new legal framework for a new business environment. ... www2.warwick.ac.uk/fac/soc/law/elj/jilt/2000_visted on 27th Nov 5 .Legal Framework visited on 27th Nov. 2008 6.File Format: PDF/Adobe Acrobat - View as HTML www.capa.com.my/images/capa/Chapter visited on 27th Nov 7. Building a Legal Framework for E-commerce in Hong Kong Richard Wu Faculty of Law University of Hong Kong richwswu@hotmail.com visited on 27th Nov 8.The legal framework for technology development and technology ... Department of Business Studies, The Hong Kong Polytechnic University, ... www.inderscience.com/search/index 9.Getting Credit in Hong Kong, China Details - Doing Business - The ... provides objective measures of business regulations and their ... and the availability and legal framework of credit registries in Hong Kong, China. ... 10.www.goggle.co.in/url The Getting Credit in Hong Kong, China Details - Doing Business) 11.Concept and legal framework of the anti-graft laws in Hong Kong and the Mainland with illustrative cases . 12. ITUC-CSI-IGB - International Trade Union Confederation 28 Nov 2008 ... Hong Kong Business Lobbies against Workers' Rights in China ... Betterment of Hong Kong (DAB), in urging the Hong Kong government to support ... www.ituc-csi.org/spip.php'article2582 Asia Times Online - News from greater China; Hong Kong and Taiwan 32. www.atimes.com/atimes/China/FD08Ad02.html visited on 28th Nov 08 Read More