Statutory Body Governance Mechanism
Regulations on Shenzhen Court of International Arbitration
Decree of Shenzhen Municipal People’s Government
TheRegulations on Shenzhen Court of International Arbitration (For Trial Implementation)has been amended at the 157th meeting of the Sixth Executive Committee of the Municipal Government of Shenzhen on 7 January 2019,and TheRegulations on Shenzhen Court of International Arbitration,as amended, is hereby promulgated and will come into force as of 1 June 2019.
Mayor CHEN Rugui
23 April 2019
Regulations on Shenzhen Court of International Arbitration
(Issued for trial implementation by Shenzhen Municipal People’s Government Decree No. 245 dated 24 November 2012, and amended in accordance with Shenzhen Municipal People’s Government Decree No. 322 dated 23 April 2019)
Chapter I General Provisions
Article 1The Regulations is formulated in accordance with theArbitration Law of the People’s Republic of China, other relevant laws and regulations, and the current circumstances to further clarify the legal position of the Shenzhen Court of International Arbitration (“SCIA”); regulate its operations; promote innovative mechanisms for resolving commercial disputes; support the independent, impartial, and efficient resolution of domestic and foreign commercial disputes; protect the lawful rights and interests of the parties domestic and foreign; and promote an international business environment operating under the rule of law.
Article 2SCIA is an arbitration institution established by the Shenzhen Municipal People’s Government to duly perform the duties prescribed for arbitration commissions under theArbitration Law of the People’s Republic of China, and is administered and operated in accordance with the Regulations and theArticles of Association of Shenzhen Court of International Arbitration(the “Articles”).
SCIA concurrently operates under the name of South China International Economic and Trade Arbitration Commission and Shenzhen Arbitration Commission.
Article 3SCIA is a non-profit statutory body operating as an independent public institution with legal personality.
SCIA adopts a council-based corporate governance structure and implements a governance system with effective checks and balances between decision-making, execution, and supervision.
Article 4SCIA shall resolve contractual disputes and other disputes concerning property rights and interests between domestic and international individuals, legal entities, and other organizations through a fair, appropriate, and efficient process.
SCIA may resolve disputes through arbitration, mediation, negotiation facilitation, expert review, or by other lawful means agreed upon or requested by the parties.
SCIA is registered in the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone in accordance with theRegulations of the Shenzhen Special Economic Zone for Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, and, serving as the platform of the Shenzhen Special Economic Zone and Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone for pursuing cooperation opportunities in international arbitration, actively establishes collaborative relations with overseas arbitration institutions and other related organizations.
Chapter II The Council
Article 5SCIA establishes a Council as its decision-making body.
Article 6The SCIA Council is composed of 11 to 15 members, including 1 chairman and 2 to 4 vice chairmen.
The Council members shall be selected from renowned domestic and international figures in the legal, business, and related sectors, and at least one-third of whom shall be from foreign jurisdictions such as Hong Kong SAR or Macao SAR.
Article 7The Council members shall be engaged by the Shenzhen Municipal Government for a term of five years which may be renewed consecutively.
Article 8The Council shall perform the following duties:
(1) reviewing and amending the Articles, rules of order of the Council, as well as rules for arbitration, mediation, and other forms of dispute resolution;
(2) nominating and examining the candidates for SCIA president and vice presidents;
(3) reviewing the establishment, change, and dissolution of special committees, and deciding the composition thereof;
(4) establishing the panels of arbitrators, and deciding the engagement and dismissal of arbitrators;
(5) reviewing annual work reports, budget plans, and final accounts;
(6) reviewing proposals for the establishment or change of internal bodies and branches and the scale thereof;
(7) formulating major rules and regulations, including but not limited to the rules on remuneration of arbitrators, remuneration of the executive management and engagement of staff members;
(8) performing other duties prescribed in the Articles and the rules of order of the Council.
Article 9The chairman shall perform the following duties:
(1) convening and presiding over the Council meetings;
(2) reviewing the implementation of the Council’s resolutions;
(3) organizing the formulation of various operating rules of the Council; and
(4) discharging other duties prescribed in the Articles or the arbitration rules.
Article 10The Council shall hold at least two meetings each year.
Council meetings shall be convened and chaired by the chairman. The chairman may convene such a meeting as necessary or upon written proposal of at least three Council members, and may delegate a vice chairman to convene and chair the meeting on his behalf.
At least two-thirds of the Council members shall be present at a Council meeting to make a quorum. Every decision taken by the Council shall require the affirmative votes of at least two-thirds of all attending Council members by ballot; amendment of the Articles shall require the affirmative votes of at least three-fourths of all Council members.
Chapter III Executive Management
Article 11SCIA shall have one president and one or more vice presidents, and may set up such internal bodies, branches, and staff positions when and as necessary.
The president is the legal representative of SCIA, responsible for the execution and administration of its day-to-day affairs, and reports to the Council and submits to the Council’s supervision. The vice presidents shall assist the president in his work.
Article 12The president and vice presidents are nominated by the Council; and the president from the Council members.
The president and vice presidents are appointed by the Shenzhen Municipal Government according to their administrative authority and applicable procedures.
Article 13The President shall perform the following duties:
(1) organizing the implementation of the Council’s resolutions;
(2) managing the day-to-day affairs of SCIA;
(3) deciding the engagement and dismissal of experts for mediation, negotiation facilitation, and other means of dispute resolution;
(4) organizing the training and performance review of arbitrators and other dispute resolution experts;
(5) organizing the preparation of annual work reports, budget plans, final accounts, and proposals on the establishment of internal bodies and branches, and submitting them to the Council for examination;
(6) deciding the available positions and qualification requirements for SCIA staff as well as their engagement and dismissal; and
(7) discharging other duties prescribed in the Articles, arbitration rules, or rules for other forms of dispute resolution or mandated by the Council.
Chapter IV Dispute Resolution Mechanisms
Article 14SCIA shall, in accordance with applicable laws and regulations of the People’s Republic of China and the Regulations, and by reference to the modern rules of international arbitration and the circumstances of the Guangdong-Hong Kong-Macao Greater Bay Area, Shenzhen Economic Special Zone, and Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, formulate the rules for arbitration, mediation, negotiation facilitation, expert review, and other forms of dispute resolution.
Article 15SCIA shall set up panels of arbitrators and lawfully appoint arbitrators with professional influence and international credibility.
SCIA may set up various panels by specialties.
No less than one-third of the arbitrators in SCIA’s Panel of Arbitrators shall be from overseas jurisdictions such as Hong Kong SAR and Macao SAR.
Article 16SCIA may establish panels of mediation experts, negotiation facilitators, and other dispute resolution experts as necessary.
Article 17Domestic and foreign parties may elect to apply the arbitration rules of SCIA, of other domestic or foreign arbitration institutions, or of the United Nations Commission on International Trade Law (“UNCITRAL Arbitration Rules”); and may agree on the necessary modification of SCIA arbitration rules as well as on the applicable law, the formation of arbitral tribunal, the method of hearing, the rules of evidence, the language of arbitration, and the place of hearing or arbitration, provided such agreement can be implemented and is not in conflict with a mandatory provision of the law of the place of arbitration.
Article 18Parties electing to apply the UNCITRAL Arbitration Rules may appoint arbitrators for the arbitral tribunal from within or outside the panels provided by SCIA.
An arbitrator who is selected by the parties from outside the panels provided by SCIA may serve as an arbitrator, the presiding arbitrator, or the sole arbitrator for the arbitral tribunal only after being duly confirmed by SCIA as meeting the qualification requirements for arbitrator.
Article 19The arbitral tribunal conducts arbitrations lawfully and independently which shall not be interfered with by any institution or individual. SCIA is subject to judicial supervision in accordance with the law.
SCIA shall set up strict professional and ethical standards, information disclosure rules, and challenge rules for arbitrators to ensure the independence and impartiality of arbitration.
Article 20SCIA shall support the lawful performance of duties by arbitrators and improve their occupational safety system.
Chapter V Management of Financial and Human Resources
Article 21SCIA shall duly develop a financial and asset management system appropriate for an independent, statutory public institution with legal personality.
SCIA is funded by:
(1) arbitration fees;
(2) service charges for mediation, expert review, negotiation facilitation, and other forms of dispute resolution; and
(3) other lawful incomes.
Article 22SCIA shall adopt an internationally competitive, market-driven staffing system as well as engage domestic and international professionals as needed to establish a specialized management and service team for dispute resolution.
The internal bodies and branches of SCIA, after being approved by the Council, shall be filed with the municipal institutional organization department for record in accordance with relevant procedures. Such matters as the staff positions and the promotion, demotion, appointment, and dismissal of staff shall be determined by SCIA according to needs and managed by employment contracts.
Staff and financial management for the cooperation platforms jointly established by SCIA and international organizations, government bodies, enterprises, associations, and other organizations shall be carried out in accordance with relevant laws, regulations, cooperation agreements, or the Articles.
Article 23SCIA shall, in view of international and market practices and in accordance with applicable rules, develop the mechanisms for the collection of dispute resolution fees, the arbitrator compensation system, and the performance-based staff remuneration and incentive schemes; and establish a system for periodic remuneration review as well as long-term incentive mechanisms.
The staff members of SCIA shall duly participate or be enrolled in social security programs, including pension, medical insurance, unemployment insurance, work injury insurance, and maternity insurance, as well as the public housing fund and corporate annuities.
Chapter VI Supervision Mechanism
Article 24Application of a party for property preservation, evidence preservation, and other interim measures, and for confirmation of the validity of arbitration agreement, shall be submitted to a competent court for judicial review in accordance with the laws and regulations of the place of arbitration.
Where a party applies in mainland China for the set-aside, enforcement, or non-enforcement of a SCIA award, or in foreign jurisdictions for the recognition and enforcement of a SCIA award, relevant laws and international treaties shall apply.
Article 25The Council forms the following special committees from its members:
(1) The Strategic Development and Rules Revision Committee, which evaluates from time to time the development strategies and rule revisions of SCIA and offers advice during Council meetings;
(2) The Arbitrators Qualification and Ethics Examination Committee, which reviews the qualifications of prospective arbitrators, supervises their ethical performance, imposes penalties for violations, and advises the Council on the dismissal or re-engagement of arbitrators;
(3) The Financial Supervision and Remuneration Evaluation Committee, which decides the appointment of auditing firm, offers advice on annual budgets and final accounts, evaluates and supervises the remuneration system for arbitrators and salary scheme for staff members; and
(4) such other special committees as it deems necessary.
Article 26The Council of SCIA supervises the executive management in implementing the Council decisions, reviews annual work reports, and evaluates the performance of the executive management.
Article 27SCIA is subject to financial supervision and audit in accordance with the law.
SCIA shall report its staff positions to the municipal human resources and social security department and its remuneration and benefits plan to the same as well as the finance department for record.
Article 28SCIA shall disclose the following information on its website for public access and supervision:
(1) the main content of annual work reports, budget plans, and final accounts as approved by the Council;
(2) dispute resolution rules, service procedures, fee schedules, and form documents;
(3) educational and professional background of arbitrators, mediators, and other dispute resolution experts; and
(4) laws and regulations relating to dispute resolution.
Chapter VII Supplementary Provisions
Article 29Where the parties agreed to arbitration by SCIA, South China International Economic and Trade Arbitration Commission, or Shenzhen Arbitration Commission, such arbitration will be handled by SCIA.
Where the parties agreed to arbitration, before the South China International Economic and Trade Arbitration Commission changed its name, by the former China International Economic and Trade Arbitration Commission South China Sub-commission or China International Economic and Trade Arbitration Commission Shenzhen Sub-commission, they may apply to SCIA for arbitration.
Article 30The Regulations will enter into force on 1 June 2019. The Measures for the Administration of Shenzhen Arbitration Commission (Shenzhen Municipal People’s Government Decree No. 295 dated 4 August 2017) shall be abolished on the same date.
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