The issue of whether Chinese companies’ in-house counsel can adequately, or legally, represent them has been under the spotlight following a recent case in the US.
A lack of appropriate qualifications for in-house counsel in China is a problem that may worsen as more domestic companies venture overseas, Xu Guojian, the vice president of the China Society of Private International Law, told China Business Law Journal.
A recent report in The Wall Street Journal outlined a case in the US which followed similar ones where judges have ruled that overseas companies were not protected from disclosure because their corporate counsel do not have the necessary qualifications to practise law.
The case involved a Bank of China internal investigation overseen by the bank’s China-based in-house counsel and chief compliance officer. The Wall Street Journal reported that federal judge Shira Scheindlin ordered the bank to produce communications regarding the investigation, following her earlier ruling that attorney-client privilege was inapplicable as the bank employees were not qualified lawyers.
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