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	ADVICE OF THE MINISTRY OF JUSTICE ON CARRYING OUT THE PILOT WORK ON IN-HOUSE LAWYERS

	(promulgated on and come into force as of October 12, 2002)


SUBJECT : IN-HOUSE LAWYER
ISSUING DEPARTMENT : MINISTRY OF JUSTICE OF THE PEOPLE'S REPUBLIC OF CHINA
ISSUE DATE : 10/12/2002
IMPLEMENT DATE : 10/12/2002
LENGTH : 911 words
TEXT :

In order to respond to the severe challenges posed by our country's enterprises and lawyers after the entry into the WTO, improve the international competitiveness of enterprises and lawyers, perfect the enterprise legal system and lawyer system in our country, our Ministry decided to carry out the pilot work on in-house lawyers prior to the end of this year. The following opinions are proposed for the purpose of ensuring the normative and orderly development of experimental work:

I. GUIDING IDEOLOGY

The experimental work on in-house lawyers shall be accommodated to the new situation faced by the enterprises and legal services of our country after the entry into the WTO, with a view to improving the quality of legal staff in enterprises, promoting the process of scientific, standardized, and legalized internal management of enterprises, strengthening the connection between lawyers and enterprises, fully exerting the safeguarding influences of legal services upon the production and operation of enterprises and promoting the perfection of enterprise legal affairs and lawyer system.

II. QUALIFICATIONS FOR HOLDING THE POSTS OF IN-HOUSE LAWYERS AND THEIR MAIN RESPONSIBILITIES

(1) To serve as an in-house lawyer, one shall meet the following requirements:
1. Having the lawyer's qualification of the People's Republic of China or the qualification for legal profession, which is issued by the Ministry of Justice;
2. Fully engaging in legal affairs in an enterprise; and
3. His enterprise consents him to serve as an in-house lawyer.

(2) Main Responsibilities of an In-house Lawyer
1. Providing legal opinions for decisions on the production and operation of enterprise;
2. Participating in the drafting and modification of legal documents of his enterprise, and examining the regulations and rules of enterprise;
3. Examining and managing the contracts of enterprise;
4. Providing suggestions for correcting illegal acts of the enterprise, and carrying out the dissemination and education of legal affairs within the enterprise;
5. Participating in the negotiations of the enterprise, and acting as agent for enterprise in litigation and arbitration activities; or
6. Other legal affairs that shall be undertaken by in-house lawyers.

(3) Rights and Obligations of In-house Lawyers
An in-house lawyer can enjoy the following rights:
1. Having such practicing rights as investigation and taking evidence, and consulting case materials in practicing activities;
2. Joining in the bar association, and enjoying the rights of the members;
3. Taking part in the assessment of professional titles of lawyers; and
4. Able to be transformed into a social lawyer directly. An in-house lawyer who applies for the transformation into an ordinary lawyer, the procedures shall be the same as those of changing and issuing certificates, the years of acting as an in-house lawyer shall be included into the practicing years as a lawyer.

An in-house lawyer shall perform the following obligations:
1. Being subject to the instructions on legal affairs and supervision of its local judicial administrative department;
2. Refraining himself from undertaking paid legal services or holding a concurrent post in any law firm or legal service firm; or
3. Refraining himself from handling litigation and non-litigation cases other than his own company in the name of a lawyer.

III. ADMINISTRATION OF IN-HOUSE LAWYERS

(1) An in-house lawyer shall be an internal person and carry out his businesses under the leading of the enterprise, whose personal connections and wages and benefits shall be subject to the administration of his entity.

(2) The qualification administration and the practicing instructions of in-house lawyers shall be in the charge of the judicial administrative departments.

(3) During the pilot period, the practicing licenses of in-house lawyers shall be uniformly made by the Ministry of Justice and issued by the judicial departments (bureaus) of all provinces, autonomous regions and municipalities directly under the Central Government.

(4) The application for a practicing license of an in-house lawyer shall be filed by a person who is in conformity with the qualifications, and be subject to the examination of the local judicial administrative department upon the approval of his enterprise, and reported to a judicial department (bureau) of all provinces, autonomous regions and municipalities directly under the Central Government for examination and approval by the judicial administrative department that approves it upon the examination. The judicial department (bureau) shall make a decision of approval or disapproval within 15 days.

(5) An in-house lawyer shall take part in the annual check and registration of the lawyer. When handling the annual check and registration, an in-house lawyer shall submit his annual work summation, and his enterprise shall provide the data that can prove his full-time undertaking of the legal affairs, etc..

(6) An in-house lawyer shall join the local bar association, as well as take part in such activities as training and education on practicing disciplines as organized by the bar association.

IV. STRENGTHENING THE LEADERSHIP OVER THE PILOT WORK ON IN-HOUSE LAWYERS

The judicial departments (bureaus) of all provinces, autonomous regions and municipalities directly under the Central Government shall think much of the experimental work on in-house lawyers, and choose those enterprises with comparatively good basis on legal affairs, including private enterprises, as the pilot entities. The pilot work shall be carried out actively, steadily and progressively. It is necessary to strengthen guidance, elaborately organize and seriously sum up experiences. All regions may formulate their specific measures for implementing the pilot work on in-house lawyers according to their local actual situations. The information about the pilot work and the existing problems shall be reported to the Ministry of Justice without delay.