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Key Legal Concepts The Hong Kong Legal System
Key Legal Concepts The Hong Kong Legal System
Week 1
Company Law
The University of Hong Kong
week 1 objectives
• course overview
• legal distinctions
• civil
• $ and/or action
• criminal
• $ and/or jail
• administrative
• government bodies/”administrator”
• Volkswagen
rule of law
• what is the rule of law? • if no rule of law
• process: due process • then rule of?
• application: no one is above the
law, including the state
• consistency of outcomes
• respect for the law
• law leads to justice
• judicial independence
• transparency
+ international law?
sources of Law legislation
(Companies + PRC law?
(primary)
Ordinance)
legislation
• what is legislation?
• why is it necessary?
• creation
• codification
• consolidation
Currently, 35 representatives of geographical constituencies and five “super seat” lawmakers in the 70-
member legislature were picked by more than three million voters, but the remaining 30 lawmakers –
representing 28 functional constituencies which operate on behalf of various trade sectors in the city –
were elected by just 230,000 voters.
legislative process
• bill usually drafted by Secretary for Justice’s offices
• Government Gazette
• readings
• first reading: title and date for second reading
• second reading: purpose and general principles, committee, public
consultation, approve/disapprove reading…
• third reading: if passed, will go Chief Executive
• may return to legislature for reconsideration
• 2/3 majority must sign or dissolve LegCo
2018 Company Law 18
The University of Hong Kong
• golden rule
• [I]n construing statutes, and all written instruments, the grammatical and ordinary sense of
the words is to be adhered to, unless that would lead to some absurdity or inconsistency with
the rest of the instrument, in which case the grammatical and ordinary sense of the words
may be modified, so as to avoid that absurdity or inconsistency, but not farther.
Gray v. Pearson (1857)
• mischief rule
• What was the law before the new law? What “mischief” was the new law intended to
address? (Heydon’s Case (1584))
2018 Company Law 21
The University of Hong Kong
• Jon bites off Jenny’s nose. Jon goes to court. The law states it is
an offense “to stab, cut, or wound” another individual. Did Jon
violate the statute? (R v Harris (1836) 7C & P446)
• Jon is drunk while riding his bicycle on the highway. The law
states that is an offense to be drunk while in charge of a carriage.
Did Jon violate the statute? (Corkery v Carpenter (1951) 1 KB
102, (1956) 2 ALL ER 745)
2018 Company Law 22
The University of Hong Kong
• Insurance Authority
Hurricane Charley
• 2004: Hurricane Charley hit the
state of Florida in the United States
resulting in 10 deaths and over $15
billion of damages
• selling a gallon of gas for $3 when
normally $1.78
• contractor offered to clear two
trees for $23,000
• stores selling $1 dollar bag of ice
for $5 dollars
• a person bought a $1 dollar bag of
ice from the store and started
selling a scoop of ice for $2 dollars
outside the store
Source: Michael Sandel, Justice: What’s the Right Thing to Do? (2009)
2018 Company Law 25
The University of Hong Kong
cobra effect
questions?
Company Law
The University of Hong Kong
Week 1
Company Law