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    Statutory Body Governance Mechanism

    Statutory Body Governance

    Governance mechanism

    Statutory Body Governance Mechanism

    In 2012, the Shenzhen Municipal Government introduced the corporate governance structure of statutory body and formulated the Regulations on Shenzhen Court of International Arbitration (Trial). This was the first legislation specifically designed for arbitration institutions in China. This legislation was primarily made to establish a corporate governance structure centred on an international and specialized council. According to the legislation, decision-making and supervision over the executive management should be exercised by SCIA's council. Furthermore, at least one-third of the council members should be from Hong Kong and overseas. At present, 7 out of the 13 members of the second council are from Hong Kong and overseas. All major decisions are made based on votes at council meetings. With this, the independence of both the arbitration institution and arbitral tribunals is ensured. The statutory body governance mechanism helps to eliminate the concerns either the domestic or foreign parties may have on the independence and credibility of Chinese arbitration institutions.

    The Regulations on Shenzhen Court of International Arbitration amended at the Executive Meeting of the Shenzhen Municipal Government and came into effect on June 1, 2019. The amended Regulations remain advanced on an international scale and further clarify SCIA's legal status as an arbitration institution to perform its duties as an arbitration commission under the Arbitration Law of the People's Republic of China. Additionally, it specifies that SCIA may operate simultaneously under the names of the South China International Economic and Trade Arbitration Commission as well as the Shenzhen Arbitration Commission. In doing this, it better illustrates the achievements of the more than 40 years of reform and opening up that have taken place within the Shenzhen Special Economic Zone. It also affirms the first merger of arbitration institutions in China at the legislative level within a Special Economic Zone.