The Inter-Pacific Bar Association’s 25th annual conference kicked off in Hong Kong with a plenary session comprising mostly senior executives of major global companies, who examined some key issues and challenges affecting the way business is done in today’s world.
The panellists included Ronnie Chan, chairman of Hang Lung Properties, Ivan Chu, chief executive of Cathay Pacific, George Leung, special advisor to HSBC, Anthony Neoh, barrister at Chambers of Anthony Neoh, and Jim Thompson, chairman of Crown Worldwide Group.
It is no secret that in the wake of the global financial crisis, regulators around the world have been enacting stringent rules and regulations to ensure that businesses operating within their sphere of influence are doing so in a manner that is both transparent and compliant. This is putting companies – particularly financial institutions – under immense pressure, and is driving up legal and compliance costs significantly, claimed some of the panellists.
While acknowledging the challenges that these regulations pose for companies, Neoh claimed that businesses and service providers need to recognise that regulations are only created in response to crises. “Today, we have billions of regulations. The reason is that the expectations of the communities around the world are increasing. People who are in the market and using other people’s capital or providing professional services are expected to be qualified, and to perform their responsibilities to the community’s expectations,” said Neoh. A lot of organisations have not been able to respond quickly enough to the expectations of the various communities, he added.
At the same time, the regulators are open-minded and are increasingly engaging in dialogue with the business community, which presents companies with opportunities to help shape existing laws and offer comments and opinions during the drafting stage of new regulations.
To help stay ahead of the curve and avoid coming under the regulatory microscope, the panel agreed tht communication between companies and their external lawyers is key. “It is extremely important to have effective communication between the lawyers and the senior management,” said Thompson.
“Legal documents can be complicated, and the ability of the lawyers to tell a company’s management exactly what the laws mean in a simplified form is critical.”
While external lawyers play a vital role in ensuring a company’s compliance with rules and regulations, the company’s senior management needs to be cognisant of the law, said Chan. “Even without the lawyers, our approach is one that ought to be highly legally minded. It is very important that we, as top management, don’t just rely on external lawyers for legal advice, but that we have a proper legal mindset that is in our blood.”
The IPBA’s 25th Annual Meeting and Conference, held in Hong Kong, runs from May 6 to May 9.