Governing Law and Dispute Resolution in Mainland China - Hong Kong Contracts

To enhance the handling of cross-border civil and commercial disputes between Mainland China and Hong Kong, the Arrangement on Reciprocal Recognition and Enforcement of Civil and Commercial Judgments (“New Arrangement”) came into force on 29 January 2024. The New Arrangement significantly expands the scope of mutual recognition and enforcement of judgments between the two jurisdictions, covering a wide range of civil and commercial matters, including certain intellectual property disputes. Compared with the previous 2008 arrangement, the New Arrangement: • Broadens the categories of enforceable judgments • Reduces the need for parallel proceedings in both jurisdictions • Lowers the time, cost, and uncertainty of cross-border enforcement At the same time, it raises important concerns for businesses, such as: Will assets in Hong Kong become more exposed to enforcement by Mainland courts? In addition, the new PRC Company Law, effective from 1 July 2024, introduces enhanced liabilities for investors, including expanded joint and several liabilities and increased regulatory scrutiny for offshore investors. Against this backdrop, the combined impact of the New Arrangement and the new Company Law presents critical implications for Hong Kong businesses investing or operating in the Mainland. <b>Programme Objectives</b> This programme aims to help participants: • Understand the scope and mechanism of the New Arrangement • Examine the key implications of the new PRC Company Law on investor liability • Make informed decisions on governing law and dispute resolution mechanisms when drafting contracts • Minimise legal risks and costs in cross-border transactions <b>Programme Outline</b> <b>1. Governing Law and Dispute Resolution under the Old Framework</b> • PRC law or Hong Kong law? • Litigation in Mainland China or Hong Kong? • Litigation vs arbitration <b>2. Key Highlights of the New Arrangement</b> • Does the New Arrangement apply to all cases?     - Scope of application     - Excluded matters • Are Hong Kong assets still protected?     - Will Mainland judgments be automatically enforceable in Hong Kong?     - Can Mainland asset preservation orders be enforced in Hong Kong? <b>3. New PRC Company Law: Impact on Investors</b> • Changes to the registered capital regime and “piercing” liability • Joint liability of former shareholders • Liabilities of shareholders in limited liability companies <b>4. Interaction between the New Arrangement and the New Company Law</b> • How to choose the governing law? • How to structure dispute resolution mechanisms? <b>5. Practical Tips for PRC–Hong Kong Business Collaboration</b> • Conducting partner due diligence • Key considerations in contract formation:     - Company seal vs signature – which prevails?     - Are electronic contracts legally valid? <b>Who Should Attend</b> Business owners and investors, senior management, finance professionals, and executives responsible for contract negotiation and execution. ________________________________________________________________________________ <b>Follow us on LinkedIn:</b> <a href="https://www.linkedin.com/company/hkgcc-training-academy" target="_blank"><b><font color="blue">HKGCC Training Academy</font></b></a> ________________________________________________________________________________