New arbitration ordinance takes effect on June 1

The new Arbitration Ordinance will come into operation on June 1, 2011.

The Ordinance will be based on the UNCITRAL Model Law on International Commercial Arbitration adopted by the United Nations Commission on International Trade Law or UNCITRAL.  It gives legal effect to Model Law provisions that are to apply in Hong Kong, subject to the modifications and supplements as expressly provided in the Ordinance.

Various aspects covered by the Ordinance include procedural rules in respect of the conduct of arbitral proceedings, interim measures and preliminary orders to be made by arbitral tribunals and the enforcement of arbitral awards.

There are "opt-in" provisions which allow arbitration users to continue to use certain provisions that only apply to domestic arbitration under the current regime.

It also limits the opportunities for judicial intervention and promotes greater parties' autonomy on the resolution of disputes by arbitration.

A commencement notice will be published in the Government Gazette on March 4.