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The International Bar Association's Council has passed a resolution on multidisciplinary practices (MDPs), its first acknowledgment that the joining of legal and accountancy practices is inevitable. The resolution calls on national regulators, including authorities which promote trade in services, to establish rules on MDPs to protect both practitioners and clients. Such rules should include measures to protect lawyers' independence and to prevent MDPs from representing conflicting interests. Client privilege and confidentiality should also be safeguarded.

Emile du Toit, general manager legal services at Absa, talks to Samantha Swiss about developing a group team after a merger

President Jiang Zemin's recent call for restraint of the People's Liberation Army's widespread business activities is only part of a greater campaign to separate government and business in China. In the areas of tax and finance, two events highlight this tendency:

Additional First Provision of Law 28 of July 13 1998 on Installment Sales, in force as from September 13, has solved some of the traditional legal issues concerning financial leasing transactions. The law's main features are as follows.

Since mid-1997, Hungarian legislation has imposed taxes on money transfers in cash so that cash payments made by companies over a certain sum (about Ft1.2 million (US$5.454 million)) entail various tax disadvantages. In an attempt to curtail cash payments, Hungary intended, on the one hand, to encourage non-cash money transfers common throughout Europe and, on the other hand, to gain greater control over the so-called black market.

In an attempt to attract more investors to join the Cyprus Stock Exchange (CSE), the income tax law has been amended to offer substantial tax incentives. The incentives aim to attract both offshore and local organizations to invest in the CSE as well as private companies.

The US is a party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. The New York Convention is incorporated into federal law by Federal Arbitration Act which governs the enforcement of arbitration agreements and arbitral awards. A principal advantage of the New York Convention is that a US party, in whose favour an international arbitration award has been rendered, may use the Convention to enforce the award in another country that has ratified the Convention. But may a foreign party use the Convention to enforce an award arising out of an arbitration proceeding in the US?

The Czech subsidiary of Slovak electrical company Slovenske elektrarne has issued Kr3 billion bonds (US$97.6 million). This is the first ever bond issue by a foreign issuer to be fully documented in and solely designed for the Czech Republic. The lead underwriter in the deal was ING Barings Capital Markets advised by US firm White & Case, Prague. Lead partner Ivan Cestr (primary issues/securities) was assisted by associates Kvetoslav Krejci and Josef Otcenasek.

Opportunities exist within the Arabian Gulf states for equity investment in large projects. But the creation of bankable project structures requires effective security over project assets. By Martin Amison of Trowers & Hamlins, London

UK firms Herbert Smith and Freshfields have been hired to represent electric companies in a recent £2.7 billion ($4.38 billion) merger. Scottish Hydro-Electric, and Southern Electric announced their merger on Tuesday, September 1. The companies are the only two privatized regional electricity suppliers not to have been involved in a takeover or merger. Scottish Hydro-Electric, which operates chiefly as a generator, has the controlling stake, in line with its larger market capitalization. The merged groupwill be called Scottish and Southern Energy and will be based in Scotland.