Business law
The present Hong Kong legal system is based upon the English legal system, with additional sources from Chinese law. Chinese laws here mean the Basic Law (BL) and the other Chinese laws which can be applicable to Hong Kong in accordance with the Annex three of Basic Law. In addition, Article 8 of the Basic Law does preserve the sources of Hong Kong laws from common law jurisdiction.
When the People’s Republic of China resumed the exercise of sovereignty over Hong Kong on 1 July 1997. Hong Kong became a Special Administrative Region of the PRC. On the same day the Basic Law came into effect. It means that Hong Kong’s previous legal system has continued in place as the foundation of the rule of law in the Hong Kong Special Administrative Region (the HKSAR). The present structure of our government is based upon the original structure before reunification with some amendments which are Legislative Council and Chief Executive.
The rule of law has played a vital role in Hong Kong’s past success, and will continue to be essential for Hong Kong’s future. It is precisely because of the full implementation of the Basic Law after the reunification that we have been able to continue to practise and develop the common law system in Hong Kong.
The concept of rule of law refers to a system in which certain principles are rooted in a legal system to ensure that individuals are not subjected to the arbitrary exercise of powers by the government. Under the concept of rule of law, all governmental powers are derived from the law. So, if the government exceeds the powers as defined by the law, the acts of the government can be considered unlawful (Chan 2000, 83). Therefore, the law is not only used to regulate individual’s behaviour, but also to control the exercise of power by the government. The rule of law begins with individuals and their right to seek the protection of the courts, in which justice is administered by impartial judges. It protects the freedom of individuals to manage their affairs without fear of arbitrary interference by the Government or the improper influence of the rich and powerful. The essential feature of the legal system include the independent Judiciary, the jury system, the role of the Secretary for Justice and the Department of Justice, legal aid and the legal profession. According to Professor Wesley-Smith identified five characteristics in a legal system, which exemplifies or proclaims the Rule of Law. There are neutrality, rationality, formality, impartiality and impersonality.
Basic Law
The Basic Law is a constitutional document for the HKSAR. It enshrines within a legal document the important concepts of "One Country, Two Systems", "a high degree of autonomy" and "Hong Kong People ruling Hong Kong". It also prescribes the various systems to be practised in the HKSAR. [next page]