Several national laws of the People's Republic of China apply in Hong Kong by virtue of Article 18 of the Basic Law. Under Article 158 of the Basic Law, an interpretation of a provision of the Basic Law by the Standing Committee of the National People's Congress is to be followed by the courts of Hong Kong in applying the relevant provision.

Nature of the Basic Law
The Basic Law of the HKSAR was enacted by the National People's Congress in accordance with the Constitution of the People's Republic of China. It is akin to a mini-constitution for the HKSAR. It was promulgated on 4 April 1990 and took effect on 1 July 1997 on the establishment of the HKSAR. All the systems and policies practised in the HKSAR must be based on the provisions of the Basic Law. These include the social and economic systems; the system for safeguarding the fundamental rights and freedoms of its residents; the executive, legislative and judicial systems; and the relevant policies. Furthermore, no law enacted by the legislature of the HKSAR may contravene the Basic Law.

The most prominent feature of the Basic Law is the underlying principle of "one country, two systems" whereby the socialist system and policies shall not be practised in the HKSAR, and the previous capitalist system and way of life is to remain unchanged for 50 years.

Under the Basic Law, all the laws previously in force in Hong Kong (that is, the common law, rules of equity, ordinances, subordinate legislation and customary law) shall be maintained, except for any that contravene the Basic Law and subject to any amendment by the HKSAR legislature. National laws of the People's Republic of China shall not be applied in the HKSAR except for a number of such laws relating to defence and foreign affairs which are listed in Annex III to the Basic Law.

Relationship between the Central Authorities and the HKSAR
The National People's Congress through the Basic Law authorises the HKSAR to exercise a high degree of autonomy directly under the Central People's Government. The HKSAR enjoys executive, legislative and independent judicial power, including that of final adjudication, in accordance with provisions of the Basic Law. Although foreign affairs relating to the HKSAR are the responsibility of the Central People's Government, the HKSAR is authorised to conduct relevant external affairs on its own in accordance with the Basic Law. The Central People's Government is also responsible for the defence of the HKSAR, but the responsibility of maintaining public order in the HKSAR is a matter for its government.

Fundamental rights protected by the Basic Law
The Basic Law details the fundamental rights, freedoms and duties of the residents of the HKSAR. These rights include the right to equality before the law; freedom of speech, of the press and of publication; freedom of association, of assembly, of procession and of demonstration; and the right and freedom to form and join trade unions, and to strike; freedom of movement; freedom of conscience; and freedom of religious belief. The Basic Law also guarantees that the provisions of the International Covenant on Civil and Political Rights; of the International Covenant on Economic, Social and Cultural Rights; and of the International Labour Conventions as applied to Hong Kong will remain in force.

The political structure of the HKSAR
The Chief Executive is the head of the HKSAR and is accountable to the Central People's Government and the HKSAR. He is assisted in policy making by Executive Council of the HKSAR. The Chief Executive presides over the Executive Council and appoints its members.

The main powers and functions of the Government of the HKSAR (which is headed by the Chief Executive) include the formulation and implementation of policies, the conduct of administrative affairs and the drawing up and introduction of budgets and legislation.

The HKSAR's legislature is the Legislative Council, and the Basic Law prescribes the specific method for forming the Legislative Council and its procedures for voting on bills and motions. Under the Basic Law, the Legislative Council's functions include the making of laws, approving budgets and public expenditure and monitoring the work of the government in general.

Common law and the rules of equity are to be found primarily in the judgments of the superior courts in Hong Kong and other common law jurisdictions. In historical terms, reports of judgments handed down by judges have, since at least the 15th century, established in detail the legal principles regulating the relationship between state and citizen, and between citizen and citizen. There are now some hundreds of thousands of reported cases in common law jurisdictions which comprise the common law. The rights relating to freedom of speech, freedom of assembly, and freedom from arbitrary arrest or imprisonment have been spelt out in cases which were decided more than three centuries ago. As we have seen, these have now been underpinned by provisions in the Basic Law.

The common law's most distinguishing hallmark is reliance on a system of case precedent, not restricted to judicial decisions generated within any single jurisdiction, but case law from all jurisdictions throughout the common law world. Article 84 of the Basic Law provides that the courts of the HKSAR may refer to the precedents of other common law jurisdictions. In addition, the Court of Final Appeal and the Judiciary of the HKSAR is given power to invite judges from other common law jurisdictions to participate in the judicial processes.

The vast majority of statute law in force in Hong Kong is made locally and contained in the Laws of Hong Kong. A great deal of legislation is made under delegated powers. This is called subsidiary legislation. For example, an ordinance may delegate to the Chief Executive in Council (the Chief Executive with the advice of the Executive Council) the power to make regulations to deal with the details of the implementation of a legislative scheme.

Some aspects of Chinese customary law apply in Hong Kong. For example, under section 13 of the New Territories Ordinance (Cap 97) the courts may recognise and enforce Chinese customs or customary rights in relation to land in the New Territories; and Chinese law and custom is recognised in the Legitimacy Ordinance (Cap 184).

Over 200 international treaties and agreements have been applied to Hong Kong. A treaty does not constitute part of Hong Kong's domestic law until given effect by legislation. Nonetheless, it may affect the development of the common law. It may, for example, be resorted to by a court as an aid to interpretation. The rapidly developing rules of customary international law can also become absorbed into the common law.

The Secretary for Justice has overall responsibility for the conduct of prosecutions in Hong Kong. It is for the Secretary and those who prosecute on the Secretary's behalf to decide whether or not a prosecution should be instituted in any particular case or class of cases.

In prosecutions for serious or complicated offences, or those which give rise to difficult points of law, police officers and other law enforcement agents will seek the advice of the Secretary for Justice or of counsel in the Prosecutions Division of the Department of Justice. In determining whether or not to prosecute, the Secretary for Justice considers two issues: first, is the evidence sufficient to justify the institution of proceedings? Second, if it is, does the public interest require a prosecution to take place? In making that decision the Secretary for Justice is not subject to any instructions or directions from the executive.

In practice, many prosecutions at the summary level involve simple cases which are processed by the Police or other investigative bodies and do not require the specific involvement of the Secretary for Justice. At the same time, all such cases are scrutinised at the Magistrates' Courts by Senior Court Prosecutors acting on behalf of the Secretary.

The most serious criminal offences, such as murder, manslaughter, rape, armed robbery and certain drug offences, are tried by a judge of the Court of First Instance, sitting with a jury of seven people or, where a judge so orders, nine. It is the jury which decides whether the accused is guilty or not guilty. A judge will urge a jury to strive for unanimity in reaching their verdict, but a jury may return a majority verdict of five to two or seven to two.

The purpose of a death inquest is to establish the identity of a deceased person and the cause of and circumstances connected with the death. In certain defined cases, an inquest must be held with a jury. In these cases, and in any other case in which the Coroner decides to hold an inquest with a jury, a jury of five is appointed.

The Basic Law expressly provides that the principle of trial by jury is maintained.

A number of principles of defence, which are in accordance with Article 14 of the International Covenant on Civil and Political Rights (which has been applied to Hong Kong by the Hong Kong Bill of Rights Ordinance (Cap 383)), have been incorporated in the Criminal Procedure Ordinance (Cap 221), Legal Aid in Criminal Cases Rules (Cap 221D), or absorbed into the common law. The Basic Law guarantees the preservation of these rights, which are:

•  equality before the courts;
•  the right to a fair and public trial by a competent, independent and impartial tribunal established by law;
•  the right to trial by jury in the most serious cases;
•  the presumption of innocence;
•  the burden of proof lies on the prosecution;
•  the standard of proof is one of beyond reasonable doubt;
•  the right to prompt and detailed information as to the nature and cause of the charge;
•  adequate time for preparation of the defence case;
•  the right to legal representation;
•  the right to be tried without undue delay;
•  the right to legal assistance;
•  the right to be tried in one's presence;
•  the right to call witnesses and secure their presence in court;
•  the right to cross-examine prosecution witnesses;
•  the right to have the free service of an interpreter;
•  the right to remain silent in court;
•  the right to appeal against conviction and/or sentence;
•  the right not to be tried or punished for an offence for which one has previously been convicted or acquitted; and
•  the right to bail pending trial or appeal (subject, however, to the gravity of the offence charged and all the surrounding
   circumstances).

The principal legislation for companies winding-up is contained in the Companies Ordinance and Companies (Winding-up) Rules (Chapter 32).

The main objectives of the companies winding-up are:
(a) to ensure that all the company's affairs have been dealt with properly;
(b) to have the company dissolved.

Modes of winding-up include:
(a) voluntary winding-up which consists of:
　　(i) members' (shareholders') voluntary winding-up; and
　　(ii) creditors' voluntary winding-up;
(b) compulsory winding-up by the High Court of the Hong Kong Special Administrative Region (“the court”).

After the commencement of winding-up:
(a) any disposition of the property of the company, including any transfer of shares or alteration in the status of the
      shareholders of the company, unless the court orders otherwise, is void; and
(b) the company or any creditor or shareholder may apply to the court to stay or restrain any pending action or
      proceeding against the company.

After the provisional liquidator is appointed or the winding-up order is made against the company:
(a) no action or proceeding shall be continued or commenced against the company except with the approval of the
      court;
(b) the Official Receiver will become the provisional liquidator of the company unless a provisional liquidator has
      already been appointed prior to the making of the winding-up order;
(c) if the property of the company is not likely to exceed in value $200,000, the Official Receiver, when acting as
      provisional liquidator, may appoint another person as provisional liquidator in his place; and
(d) the provisional liquidator will take over control of the company including its assets and accounting records and
      investigate the company's affairs.

On the appointment of a provisional liquidator or the making of the winding-up order, the powers of the directors of the company will cease. The directors must then:
(a) deliver to the provisional liquidator or liquidator the company's assets, books and records and seal;
(b) attend the office of the provisional liquidator or liquidator for interview to provide information of the company's
      assets and dealings;
(c) submit a sworn statement of affairs of the company (similar to a balance sheet) within 28 days after the
      appointment of a provisional liquidator or the making of the winding-up order;
(d) attend meetings of creditors and contributories when notified by the provisional liquidators or liquidators;
(e) continue to co-operate with the provisional liquidator or liquidator until the liquidation is concluded; and
(f) notify the provisional liquidator or liquidator of any change in address.

Directors who fail to perform their duties such as failure to keep and preserve books and records of the company, failure to prepare and submit the statement of affairs, etc. may be prosecuted and disqualified from acting as directors for a certain period of time.

The Official Receiver may make application to the court for a disqualification order against any director of a wound up company if the director's conduct makes him unfit to be concerned in the management of a company.

The court may make a disqualification order forbidding a person to act as a director of any company for a period up to 15 years.

The Bankruptcy Ordinance provides the legal framework to enable:
(a) A creditor to file a bankruptcy petition with the Court against an individual, a firm or a partner of a firm who owes
      him/her money; and
(b) A debtor who is unable to repay his/her debts to file a bankruptcy petition against himself/herself with the Court.

The main objectives of the bankruptcy legislation are:
(a) To collect and realise all the bankrupt's assets and distribute them amongst his/her creditors; and
(b) To investigate the causes of insolvency and to punish the bankrupt if any breach of the bankruptcy provisions is
      involved.

Once a bankruptcy petition is filed or the Court makes a bankruptcy order, no proceedings can be taken against or continued with against the debtor/bankrupt or the debtor's/bankrupt's assets without the leave of the Court.

The Official Receiver becomes the provisional trustee upon the making of the Bankruptcy Order. In case of a debtor’s petition, the Official Receiver may appoint any qualified person as provisional trustee if the assets of the bankrupt are unlikely to exceed $200,000.

The Provisional Trustee/Trustee will take control of the assets of the bankrupt, including the accounting books and records in the case of a trading bankrupt. When the assets are vested in the trustee, the trustee has the power to continue to administer the assets even after the bankrupt's discharge from bankruptcy. As regards the premises wherein the bankrupt normally resides which forms part of his/her assets, depending on the circumstances, the bankrupt may be allowed to continue living therein for a certain period of time to enable him/her to make other housing arrangements and to discuss with the Trustee how the bankrupt’s interest may be realised.

A bankrupt may not be able to practise in certain professions for example, as a lawyer, an estate agent, an insurance agent, a securities dealer or act as a director of a limited company. A bankrupt working in the banking sector is required, under the Banking Ordinance, to inform his/her employer of his/her bankruptcy.

Upon the making of the Bankruptcy Order and throughout the bankruptcy period, a bankrupt must fully co-operate with the Provisional Trustee/Trustee in the investigation of his/her bankruptcy and the realisation of assets. He/She must provide information regarding his/her assets and liabilities, financial dealings and other relevant matters.

The duties of a bankrupt include:
(a) Attending at the Office of the Provisional Trustee as soon as possible upon the making of the Bankruptcy Order and
      other subsequent meetings with the Trustee whenever notified;
(b) Handing over all assets to the Provisional Trustee/Trustee;
(c) Submitting a completed Preliminary Examination Questionnaire and a completed Monthly Income and Expenses
      Assessment Form;
(d) Submitting a Statement of Affairs in the case of creditor's petition;
(e) Submitting accounting books and records in the case of a trading bankrupt;
(f) Stop using credit cards and accounts in banks and other financial institutions immediately. However, a bankrupt
      may, with the permission of the Provisional Trustee/Trustee, open a savings account for the purpose of receiving
      his/her income;
(g) Refraining from obtaining further credit;
(h) Not making payments direct to individual creditors;
(i) Attending all meetings of creditors;
(j) Making contribution towards his/her estate in bankruptcy out of his/her personal income as assessed by the
      Provisional Trustee/Trustee;
(k) Informing the Trustee immediately of any change in name, address and telephone number (also fax number and
      email address, if any) in Hong Kong and elsewhere;
(l) Responding to the Trustee's inquiries within a reasonable period of time;
(m) Returning to Hong Kong if requested by the Trustee to do so; and
(n) Submitting to the Trustee an annual statement of earnings with details of any property acquired.

Note: Pursuant to section 83 of the Bankruptcy Ordinance, if a bankrupt or any of the creditors or any other person is
           aggrieved by any act or decision of the trustee, he may apply to the court, and the court may confirm, reverse or
           modify the act or decision complained of, and make such order in the premises as it thinks just.

For a bankrupt who has not previously been adjudged bankrupt and who has fully complied with the provisions under the Bankruptcy Ordinance, he will be automatically discharged from bankruptcy four years from the date of the Bankruptcy Order provided that there is no objection from the creditors or the Trustee.

The creditors or the Trustee may object to the automatic discharge of the bankrupt on the grounds set out in Section 30A(4) of the Bankruptcy Ordinance which include non-cooperation, unsatisfactory conduct, failure to prepare an annual statement of his earnings and acquisition, etc. The period of extension of bankruptcy will not exceed four years.

Pursuant to section 30A(10)(a) of the Bankruptcy Ordinance, if a bankrupt has left Hong Kong and has not returned on the day of the making of the Bankruptcy Order, the period of bankruptcy will not commence to run until such time as he returns to Hong Kong and notifies the Trustee of his return.

Pursuant to section 30A(10)(b)(ii) of the Bankruptcy Ordinance, after the making of the Bankruptcy Order, if a bankrupt fails to return to Hong Kong on a date or within a period specified by the Trustee, the period of bankruptcy shall not continue to run during the period he is absent from Hong Kong and until he notifies the Trustee of his return.

•  personal data shall be collected for a purpose directly related to a function and activity of the data user; lawful and fair
   collection of adequate data; data subjects shall be informed of the purpose for which the data are collected and to be
   used.

•  all practicable steps shall be taken to ensure the accuracy of personal data; data shall be deleted upon fulfillment of
   the purpose for which the data are used.

•  unless the data subject has given prior consent, personal data shall be used for the purpose for which they were
   originally collected or a directly related purpose.

•  all practicable steps shall be taken to ensure that personal data are protected against unauthorized or accidental
   access, processing or erasure.

•  formulates and provides policies and practices in relation to personal data.

•  individuals have rights of access to and correction of their personal data. Data users should comply with data
   access or data correction request within the time limit, unless reasons for rejection prescribed in the Ordinance are
   applicable.