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III. Problems in Cooperation

(d) Lack of clarity on the legal responsibilities of non-partnership associations

At present, the provisions on the liability of non-partnership associations mainly follow the provisions under
the “Measures for the Management of Associations Formed by Law Firms of the Hong Kong SAR or the Macao
SAR and Mainland Law Firms” and the “Lawyers Law of the PRC”. If a non-partnership association and the

assigned lawyers cause losses to the clients as a result of illegal practice or negligence, they shall be solely or

jointly liable for the compensation to the client in accordance with the partnership agreement.

3.1.2 Difficulties in cooperation arising from differences in business practises

There may be certain differences in how legal practitioners do business between Hong Kong and the

Mainland, which are primarily influenced by the different legal systems, market conditions, and regulations in the
two jurisdictions. Hong Kong law firms usually operate under the partnership system (general partnership and

limited liability partnership), while some adopt the sole proprietorship form of operation. Mainland law firms, on
the other hand, may have more diverse organisational structures, including partnership, limited liability company

and company limited by shares.
One of the suggestions is that the two regions can draw on international experience with cross-regional law

firm collaboration to explore a new model for cooperation and operation. The adoption of corporatisation of law
firms breaks conventional governance structures and operation models of law firms, allowing them to adapt to

the rapid changes in the legal market and achieve sustainable and healthy development. For example, the law
firm Slater & Gordon in Australia was listed on the Australian Securities Exchange in 2007, Shine in 2013, and

Gateley Plc in the United Kingdom in 2015.
Currently, the “Trial Measures on Hong Kong Law Firms and Macao Law Firms Operating in the Form of

Partnership Association with Mainland Law Firms in Guangdong Province” has come into effect since 2014,
which was amended in 2019. The document provides that Mainland law firms and Hong Kong and Macao law

firms may cooperate to set up partnership associations in the form of special general partnership. This measure
enriches the mode of cooperation between the two regions. However, for the corporatisation of law firms, the law

must be amended to strengthen supervision.

3.2 Obstacles to the cooperation between Mainland law firms and Hong Kong legal
practitioners

The Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area (“Outline
Development Plan”) proposes to “expedite the development of the legal services industry…expand pilot areas for

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