In a recent article in The Business Times, authors Lee Suet Fern and Sriram Chakravarthi state that it is a recognized fact that there is much diversity across Asian legal systems, and that “to the business community, this diversity represents business risks arising from unfamiliarity with the laws, uncertain legal processes, unknown legal exposure and, most importantly, unpredictable legal outcomes.”
The authors argue for a ground-up approach that builds on region-wide participation, acceptance and implementation.
“It is in this context that Singapore's Chief Justice Sundaresh Menon, in his address at the opening of the Singapore Legal Year 2015, issued a clarion call for meaningful convergence by observing that ‘diversity between legal systems, especially in Asia, can inhibit transnational commerce at a time when the boundaries continue to become increasingly porous in matters of trade and commerce. The legal fraternity must respond to this reality by proffering solutions that reduce avoidable legal diversity.’”
The authors look to ALI as a possible solution. “Yet another solution could be to produce authoritative statements of what the major currents or trends of business law are as they exist in the Asian region. For example, in American jurisprudence, Restatements of the Law serve as model laws that are designed to clarify specific legal issues. Such authoritative statements or descriptions need not necessarily involve the endorsement of governments nor be binding instruments. Their acceptability will largely depend upon their persuasive scholarly authority and market relevance.”
Read the full article online.