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The assignment is all about business laws in the legislation of Hong Kong stating that independent court can amend laws.

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According to the legislation of Hong Kong, it can be observed that in Hong Kong Rule of Law plays a vital role in the legislative system. According to the Rule of Law, it can be stated that only an independent court can amend the law and these rules maintains the equality principle. The government executives and staffs are liable to follow the Rule of Law (DOJ, 2018). In case of any kinds of necessity a government executive can amend a law but government executives needs to show proper justification of amendment of a law. In case of a government executive fails to prove the necessity of amendment of a law it will impose a compensation charge on this person. Legal system of the HKSAR always follows the equality factors associated with different legislation. It provides equal space in justice to all the people. This law provides all compatriots equal right for seeking justice (DOJ, 2018). This helps to prevent the discrimination among people of this region. According to this legislature it can be stated that the there are certain position for executive powers. However, a statutory power cannot amend the legislations without having a reasonable explanation of the amendment.

On the other hand, in case of any real case related to a person proves the necessity of an amendment it can be amended and can be legalized (DOJ, 2018). The legal system of HKSAR always tries to maintain different rules of equality and tries to prevent any kind of contravention of these laws. From this point of view, it can be stated that legislative system of the HKSAR is quite stringent and it can be changed by court or any government executives without having valid reason behind this. The legislature cannot be envisaged for fulfilling the requirement of a person or group of persons, which helps to maintain the equality among the citizens (DOJ, 2018). Moreover, for all the people this law holds good and tries to prevent infringement of the law by the government executives and from this aspect it can be stated that this legislation is quite transparent.

In order to improve the legal condition of the country, it is obviously having law framework. In this regard, HKSAR can be observed in Hong Kong to offer an improved legislative framework to the Republic of China. However, the assessment of HKSAR delivers knowledge that national legal framework is composed of four fundamental legislatures. These laws are Basic Law, Rules of Equality, Statute Law and Common Law. Basic Law can be observed in Article 18 of the country and the interpretation of this legislature can be observed in Article 158. Additionally, relevant provisions are applied through Court of China using the directions of these articles.

The assessment of the basic law of HKSAR offers intense knowledge regarding the formation of the law where it is stated that HKSAR is inaugurated for the people of Hong Kong region (DOJ, 2018).

Nonetheless, promulgation of Basic Law is observed in 1990 while enactment of this law is considered in 1997. The emergence of HKSAR is the key reason whereby following law is enacted in the Hong Kong region. Moreover, according to this law people of Hong Kong can take assistance from this legislature. The prime feature of HKSAR is adoption of the primitive capitalist system. Moreover, Hong Kong republics can practice this legislature and Chinese national laws cannot be applied over them. The exception of the matter is observed in Annex III of the Basic law, where it permits towards intervening national laws in case of foreign affairs (DOJ, 2018).

Likewise, in case of defence national laws of China are considered within the priority list.

Apart from this, a high order of autonomy can be observed in case of HKSAR where the government of China cannot interfere. The executive rights along with final adjudication are being delivered to the Hong Kong people through HKSAR. The Chief Executive is considered heads this administration and provisions are given to form new policies thereby. Similarly, equality rights of Hong Kong people are also demonstrated under the Basic Law of HKSAR (DOJ, 2018). On the other hand, common law and rules of equality are observed with second-most prior importance that guarantees International Covenant, Labour Covenants and other legal aspects. Article 84 of Basic Law deals with precedents of common law and majority of statues are enlisted through statute law, which is considered as subsidiary legislation. Meanwhile, Chinese customs can be enacted through section 13 of New Territories Ordinance and almost 260 treaties are signed on international law.

Role of government in law making

 In order to make amendment of the law secretary for justice is appointed by the government as an executive personal for making any kind of amendment in the law. In order to become secretary of justice a person needs to be a law practitioner and needs to be a resident of Hong Kong above 15 years. A person by fulfilling these criteria can become the secretary for justice and holds the topmost power by which this person can provide legal advice to the legislative assembly of HKSAR (DOJ, 2018). However, the secretary of Justice also does not possess the power for making amendment of any legislation and any kind of enactment without reasonable ground of legislation. Secretary for justice plays a crucial role as a legal advisor of the government. Another responsibility of secretary of justice is to defend against any kind of allegation related to the civil operations of the government.

On the other hand, secretary for justice as an executive of the legislative assembly of HKSAR has the responsibilities to handle all kinds of criminal cases in this special region (DOJ, 2018). Hong Kong Government provides the right of equality to all its citizens and secretary for justice plays a role of guardian in this regards. Secretary for Justice operates the department of justice by providing proper guidance to six departments of justice. Different law officers operate these five departments of department of justice for maintaining Rule of Law. The remaining one helps to provide proper training to different administrative officers as well as legal advisors. Hong Kong government by maintaining the normalcy of different activities of these two departments always tries to prevent any kind of contravention of present rules (DOJ, 2018). On the other hand, these departments try to develop new rules according to the necessity of the legislation and validity of ground of any kind of enactment and amendment of an existing rule. However, according to the Annex III of the basic laws related to the HKSAR it can be noted that national laws can intervene in HKSAR regulation only if it is mentioned in this section. In other cases, national laws of China will not be applicable for HKSAR legal system. HKSAR government always seeks. However, there is a strict prohibition for HKSAR legislature to develop laws against the national laws of China (DOJ, 2018). However, the statute laws were directly developed by the statutory bodies of Hong Kong and in this case, government of Hong Kong can enact these laws by developing different government schemes. In order to develop the laws of Hong Kong laws of UK and China both have played a crucial role.

Application of statutory and common law in HKSAR

There is a vast application of HKSAR legislation over the people of Hong Kong. In this regard, it is obvious understanding the application of these statues and common laws on new business whereby people of the place can grab apt knowledge regarding their laws. The prime requirement understands the environmental legislation that is required during the formation of new business under HKSAR. Similarly, health and safety legislation, consumer legislation, legislation on data protection and confidentiality and cyber security legislation are also required a prominent understanding of the businesspersons (epd.gov.hk, 2018). In addition, it is mandatory to protect consumer rights for business sustainability thus; it is described under the general section of Consumer Protection Legislation. Cap.216 deals with consumer council ordinance whereas small claims of Tribunal Ordinance are described within Cap. 338. Likewise, to offer an enhanced data security layer to the business of Hong Kong republics, Cap.486 has described personal data ordinance.

The sole purpose of the Environmental legislation is empowering EPD and eliminating environmental pollution factors. Cap.311 is inaugurated for air pollution control whereas waste disposal is elicited under Cap.354. In a similar vein, water pollution mitigation has been considered inside Cap.358 and Cap.400 has focused in noise control of the business industry. The business organizations require gathering knowledge about ozone layer protection through Cap.403 and sea-dumping management is described under Cap.466. Thereafter, hazardous chemicals elimination is observed in Cap.595 and eco-responsibility of products are demonstrated under Cap.603 (epd.gov.hk, 2018). Moreover, motor vehicle pollution is a worrying factor for environmental sustainability thus Cap.611 is designed with the penalty structure regarding idling of motor vehicles.

Apart from this, Chapter 282 of HKSAR is based on Employees’ Compensation Ordinance where employer needs to pay compensation for the injury of employee. Besides this, under the legislature employees working outside nation are also considered an injury while working is observed as a factor of compensation. However, compensation amount is distinguished as per age of employee whereby within 40 employees can grab compensation of 84 months earning. Similarly, employees ranging within 40-56 can grab 60 months compensation and above 56 are paid with 36 months earning amount (Labour, 2018). Furthermore, different cyber security structures are amended by the Hong Kong government to elevate data protection of the business. All cyber security dealings are operated through Office of the Government Chief Information Officer (OGCIO) and Cyber Security and Technology Crime Bureau (CSTCB).

Potential impact upon business of HKSAR

According to the legislature of the HKSAR, it can be observed that it follows the rules of the English law and as a result, this law follows the UK’s contract laws. Laws of contract provide the regulation related to the business, which needs to be followed by an organization. This helps to prevent the contravention of the civil rules of HKSAR by providing proper justice to all persons and individual bodies in this regards (DOJ, 2018). Hong Kong is one of the famous centers of business and due to this reason every year different private entities tries to establish business in this region. The legal practitioner tries to maintain laws of contract accordingly to maintain provision related to the contract laws mentioned in legislature of HKSAR.

On the other hand, in the legislation of HKSAR ground of contract between the employees and the employers of an organization is mentioned briefly in order to provide prevent the conflict among employees and their employers (Labour, 2018). However, the government of Hong Kong by involving legislative assembly tries to amend the civil contracts laws in order to avoid different types of land disputes in this region and this helps to maintain the resilience of legislature in this region. Government always tries to maintain the market liquidation to mitigate the issues related to the insolvency of different private organizations. This helps different organizations to make effective growth in Hong Kong market.

According to the employment contract rules it is mentioned that employer can terminate employees at any time without providing any kind of notice in case of any kind of organizational misconducts and in case of any kind of fraud activities (Labour, 2018). On the other hand according to the chapter 11 of the contract act related to the employment it has been mentioned that employee can terminate from the contract of employment in case of any kind of misbehave of employer and issues related to the health and safety at the workplace of the organization. In case of any kind of termination from employment, an employee can demand extension period of employment for meeting the monetary needs in personal life and for finding another job in this time (Labour, 2018). According to these laws of employment contract of HKSAR, it is mentioned that both employees and employer needs to obey the rules of contract otherwise, it can impose monetary compensation charges on them.

The following study demonstrates the fact related to business partnership of three friends where one of the friends is an IT officer. Remaining two friends are David (accountant) and Evia (marketing specialist). According to the case scenario, it is observed that the partners of the business are forming a business in Hong Kong region. Hence, it is obvious to address the factors that are essential in forming a partnership business within Hong Kong. However, it is evident to form a registered organization whereby government interventions and support can be grabbed by the firm. Nevertheless, every partnership business has some legal procedures and it needs to be maintained throughout the business formation. The prime criterion of forming partnership business is maintaining transparency and eliminating discrepancies (CR, 2014). Apart from this, partnership management requires providing equal rights to every partner. On the other hand, it is obvious to form a registered business in case of more than 20 partners. Equal responsibilities need to be divided among the partners and alongside profit; debts have to be divided equally among the partners. In order to form partnership business in Hong Kong, there are two types of partnership ordinance observed. Hence, these three partners need to evaluate the limitations and advantages of general partnership along with limited partnership.

The prime advantage of the registered company is the flexibility of the business and profound management offerings. Apart from this, statutory controls are less and thereby several tax-avoidance can be observed in Hong Kong (CR, 2014). On the other hand, there is no tax charged on the registered organization for capital gains. Similarly, foreign dividends are not considered under taxation and share capitals can be invested with low capitals. Additionally, the standard procedure of registration can be observed as follows: (refer to Appendix 1)

Other than this, in order to register the company, it is obvious for these business partners to provide incorporation form during the registry application. Similarly, company’s articles of association copy and notice obtained through business registration office need to be attached with the documents. Apart from the documents it is obvious filling up the F1 form whereby principal business place address will be elicited (CR, 2014). In addition, executive members’ identities need to be submitted accordingly for the business registration. Moreover, company financial account information needs to be displayed in front of the registration authority for the governance of financial activities. Thus, submitting these documents during the company registration, it will be possible for this company to become a registered organization and thereby it can be considered as a general company.

Different types of managers such as Marketing manager, Operational manager and finance manager will be included in board of directors along with directors as well as auditors of this company. In the management structure activities junior managers along with trainee manager will be supervised by this board of directors. This will help to make internal operations of this company more effective and exclusive. The appointment of auditor’s directors and secretary of this company will be done by following Part 9, Part 10 of Ordinance Act of HKSAR (CR, 2014). This will help to maintain regulation of HKSAR region related to the appointment of directors and auditors of an organization. Furthermore the termination process of a board of director needs to be followed the rules of section 424 as well as section 425(1) (CR, 2014). This will help to mitigate the conflicting issues among stakeholders of this organization related to the resignation process.    

According to the Chapter 32 of Hong Kong’s law, it can be stated that director is the responsible person for preventing insolvency of the organization. This can be done by the directors of an organization by providing the workforce proper guidance to meet the financial needs of one organization. On the other hand, bills committee has mentioned that the sole responsibility of one director is to maintain the ‘duty of care’, which helps to maintain the interest of different stakeholder related to an organization (CR, 2014). According to Part 9, it has been mentioned that directors are responsible for audits related to an organization. In addition directors has the responsibilities to provide proper analytical review related to the financial situation of an organization  to its stakeholders by which they are able to understand the present situation of the organization.

Part 10 of ordinance provision provides the idea of appointing and the dismissal of a person from directorship. Besides this, directors of a company are liable for fair dealings related to the internal process of the organization (CR, 2014). This provision is mentioned in the Part 11 of this ordinance act of HKSAR. Simultaneously according to the Part 12 of this act, it is mentioned that directors are liable for arranging different meetings of an organization. Part 12 also shows the transparency of the involvement of a shareholder in an organization. In this section, it is mentioned that one shareholder needs to maintain effective transparency in decision-making process by which organization are able to understand activities related to its shareholders (CR, 2014). According to Cap 32, provision related to the remedies of a shareholder is mentioned. This helps to realize the scope of a shareholder to seek the remedies from organization due to misconduct of the process. Evia needs to understand these all provision related to the shareholder and director in order to realize her role in EBD Ltd.

In order to elevate the financial performance of the registered organization it is obvious to maintain transparency of the firm. The prime requirement of the firm is convincing the investors whereby this bulk amount can be managed by the executives. As per the case study, it is observed that the firm needs HDK 3 million as its initial capital. Hence, to grab this huge amount the company needs to showcase their uniqueness in front of the investors whereby the investors will find it as an attractive business firm for investment. Apart from this, fundraising requires proper governance whereby the company can find out absolute techniques for investment. As for an example, by engaging more people with the firm it is possible for the organization to elevate the financial capability of the company (CR, 2014). Henceforth, funding of the business will be easier for the company during the business propagation. Nonetheless, it is obvious for the executives to select a productive destination whereby business operations can be maintained sustainably. Moreover, the selection of products needs to be created based on the demand of people. Hence, it is mandatory engaging experienced people with the firm those have proper insights into the fundraising techniques.

Along with this, in order to raise the fund of the firm this company requires assessing the potential threats and immediate elimination of these challenges is obvious. Likewise, realistic approaches need to be furnished in front of the investors whereby the investors can enhance their trust over the company. Moreover, resource enrichment of the firm can influence the investors and thereby investment can be attracted by the company. Similarly, the company needs to enhance business clarity with effective approaches. As for an example, it is essential to highlight on debt clearance of the firm whereby organizational reputation can be elevated remarkably (CR, 2014). Moreover, the company needs showcasing the details of the funding requirement in front of the investors. Afterwards, highlighting the productivity of the company is obvious for enhancement of investor number. Nevertheless, the company requires forming a partnership business thus the contribution of partners in the firm is equally important. However, it is obvious facing difficulties while managing a fund for the organization. In this regard, company directors require offering profound knowledge to their employees whereby employees can gather knowledge regarding organizational vision and mission. Similarly, the company needs to apply for the loan in a bank and showcasing the actual requirements of the fund this organization can grab the loan easily.

According to employment protection act, it can be stated that an employee can apply extension period of termination according to Chapter 10 of employment protection act. This can help Fenny to sustain her termination from this organization EBD Ltd. According to the chapter 10 of employment contract law it has been mentioned that an employee can demand 3 months for extension of employment in case of any kind of sudden termination (Labour, 2018). According to this rule, it can also be stated that in case of any real ground, this extension period can be increased for a period of six month. In this regard, Fenny can show letter as evidence, which will help her to prove her loyalty.

Fenny also can file a case in the court in the ground of Labor Tribunal and this can help her to protect her employment. An order related to the reengagement in an organization can help Fenny to regain her position in the organization. It will enforce David to follow the rules of court. According to letter, Fenny has mentioned that she will repay $200 in the next day and this can be considered as one of the major evidence for preventing her employment of the organization. Moreover, Fenny can apply for award related to the terminal payment, which can help her to seek monetary compensation for her termination. According to this legislation, it can be stated that an employee can apply for monetary compensation of up to $150000 for an unnecessary termination of employment (Labour, 2018). In this ground, the circumstances of termination and period of the employee in the organization will be considered as major factors. Moreover, the court will seek for the reason of the dismissal. In this ground, Fenny can mention about the letter and can protect her employment or can access the compensation amount against her termination.

Arbitration is required for the dispute management of the firm and it is considered as an effective dispute resolution technique. This technique is applied to the organizations during the violation of the contract. Moreover, using the flexible nature of the arbitration, an organization can manage disputes with actual evidence. According to the scenario, it has been claimed by the IT management firm that Johnson Ltd has delayed in delivering instruction regarding program management. However, as per the contract paper, this IT firm is liable to pay $1000/day until the accomplishment of the program. On a contrary movement, following IT firm has denied paying this amount as the fault is resulted due to Johnson Ltd. In order to seek justice for the IT firm, this company can lodge a complaint against Johnson Ltd with valid evidence. In addition, HKIAC is considered an apex institution of arbitration ordinance thus using the ordinance following firm can avail the justice (hkiac.org, 2018). Furthermore, considering the case scenario it can be obtained that Johnson Ltd has offered the information with a delay in order to penalize the following firm. However, assessing different advantages of arbitration it can be noted that arbitration is provided for the neutrality of the contract.

On the other hand, the flexibility of the arbitration delivers knowledge regarding procedures that are needed for the permission of the agreement. Similarly, court litigation is a vast procedure for seeking justice while the flexibility of arbitration accelerates the process (hkiac.org, 2018). Due to this reason, arbitration can incur justice for the IT firm in a time efficient manner. Meanwhile, this does not require any court proceeding whereby expenses can be reduced wisely. On the other hand, confidentiality of information is a vital requirement for companies as discrepancies damage business remarkably. Due to this reason, using the arbitration disputes can be managed by both the parties with mutual understanding an effective communication whereby public interference can be avoided. Enforcement of bilateral treaty is another important matter what needs consideration for the dispute management (hkiac.org, 2018). However, diversification of arbitration can help in avoidance of this obstacle whereby mutually disputes can be managed by the parties. Moreover, arbitration never requires any re-assessment of case merit whereby prolongation of the case can be avoided.


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