Hong Kong—security for costs—the arbitral tribunal
Produced in partnership with Peter Chow & Felicia Cheng of Squire Patton Boggs (Hong Kong)
Hong Kong—security for costs—the arbitral tribunal

The following Arbitration guidance note Produced in partnership with Peter Chow & Felicia Cheng of Squire Patton Boggs (Hong Kong) provides comprehensive and up to date legal information covering:

  • Hong Kong—security for costs—the arbitral tribunal
  • Powers conferred by Arbitration Ordinance, Chapter 609
  • Limitations
  • Institutional arbitration
  • Ad hoc arbitration
  • Orders against both parties
  • Amount of security for costs

Whether a tribunal can order a claimant to provide security for the costs of an arbitration will depend on the powers conferred on the tribunal. Such powers may be provided for by the Hong Kong Arbitration Ordinance, Chapter 609 (AO) and/or institutional arbitration rules or ad hoc arbitration rules. Note:

  1. institutional rules generally give the tribunal the discretion to grant an order for interim relief

  2. in ad hoc arbitrations, where the parties make their own arrangement without reference to an institution for that institution's rules or supervision, the parties can agree on specific rules, the most popular being the UNCITRAL Arbitration Rules (UNCITRAL Rules)

Powers conferred by Arbitration Ordinance, Chapter 609

Pursuant to AO, s 56(1)(a), a tribunal can order a claimant to provide security for costs and must, when making such an order, specify the time within which security is to be provided. Such time may be extended. If security is not provided within the time ordered or extended, the tribunal may dismiss or stay the claim (AO, s 56(3) and (4)). If the tribunal orders a stay (as opposed to dismissal) as the sanction for failure to provide security by the time specified, this means the claim can be revived by the provision of security at a later date. By requiring the tribunal to provide for a time