The work from home dilemma – get creative

If 2020 was about surviving coronavirus and lockdown, 2021 is most certainly about rebuilding and making up for lost time. With the Covid-19 vaccine rollout progressing well, and pubs and shops reopening ahead of a supposed return to normality by late June, going back to the office is becoming a reality.

As The Legal 500 UK editor Georgina Stanley points out in ‘Living at work’, the past year has seen the stigma that working from home is less productive than long office hours eradicated, but we have also lost the benefits of spontaneous social interaction with clients and colleagues and the ease of separation between work and home life. As for the younger generation of lawyers, they are suffering from a lack of face time with clients and partners, losing out on crucial training and development. Continue reading “The work from home dilemma – get creative”

The Client Profile: Lindsay Beardsell, Tate & Lyle

Lindsay Beardsell is never one to rest on her laurels. She trained and qualified at Freshfields Bruckhaus Deringer but, as is the case for so many established general counsel (GCs), private practice failed to satisfy the need to be closer to a business.

She recalls: ‘My parents had their own businesses and that always interested me – the cut and thrust. I wanted to be close to the commercial aspects of the business. So I left Freshfields two years post-qualification, which was a bit of a shock to people, and went to British Gas for my first in-house role.’ Continue reading “The Client Profile: Lindsay Beardsell, Tate & Lyle”

Global London: Non-US firms in London – On standby

The issue on every European partner’s lips in our Global London report in 2016 was the outcome and fallout of the UK’s Brexit referendum on 23 June that year. Even then, just a few months before the vote, there was a palpable hope that Britain would not do the unthinkable. Those hopes were soon dashed. With the transition period ending on 31 December 2020, the UK has officially left the EU. What does this mean for the London strategies of European firms that have maintained small but effective London offices? Is it time to pack their bags?

Despite the uncertainties non-US firms based in the City have faced in the past five years, there is notable confidence over the importance of the location and the sustainability of a London practice beyond 2021. Continue reading “Global London: Non-US firms in London – On standby”

Sponsored briefing: Running a people business

You have been chair of Paul Hastings’ City office since October 2018. What have been your personal highlights of how the firm has developed in London?

Arun Birla (AB): I’ve enjoyed seeing our practices grow, and not just from a client or revenue perspective, but also in other aspects that are particularly important to me – diversity and inclusion, wellness, and on the social mobility front. We’ve built on all those elements – clients, revenues and integrating new partners, alongside what some people might call the softer things, but I don’t like that term. Continue reading “Sponsored briefing: Running a people business”

Life During Law: David Patient

My father was a consultant obstetrician, his brother was an accountant, but I was rubbish at science and didn’t like maths. I was pushed down this corridor – ‘why don’t you do law?’ I knew absolutely nothing about it and no-one in our family had been a lawyer.

Some of my best friends still are people I met at university. A lot of them have gone off to do other things but one of them who has remained a close friend from the very first evening we met is a senior corporate partner at Allen & Overy, Richard Hough. Really lovely guy. Continue reading “Life During Law: David Patient”

Global London: Flying hiatus

While no two years are ever quite the same in the world of Legal Business’ Global London report, the story can usually be summed up as one of bifurcation. It tells of the dynamic high-flyers and those foreign firms whose London practices have yet to take off the ground.

For years there has also been a relative predictability in the worry lists of City leaders of non-UK law firms – concerns around London’s place on the world financial stage post-Brexit, an overdue downturn and the perennial challenge of keeping a grip on market share in an ever-more competitive arena. Continue reading “Global London: Flying hiatus”

Sponsored briefing: Piloting maritime law in Egypt

Hisham Eldib and Nada Eldib of Eldib Advocates on how the firm’s core values and network of offices align with Africa’s ever-growing infrastructure

We would like to take this opportunity to express our firm’s keenness in co-operating with Legal Business magazine and being recognised among other esteemed law firms as well as the maritime and transport society in Africa. Eldib Advocates was established in 1875; we are a full-service law firm operating across Egypt and regionally with four offices nationally, in Alexandria, Cairo, Port Said and Suez, and three regional desks, covering Libya, Sudan and Saudi Arabia. Being a player in the legal field for over 145 years, our experience spans beyond local market industries to those of international markets, rendering legal services to a wide range of national and multinational corporations; in addition, to having an established network of affiliates across Africa, the Middle East and further worldwide. Our mission is to deliver innovative business solutions and result-oriented counsel to our clients existing at all stages. We always aim to effectively articulate our clients’ options and the risks involved in any venture and hope to guide them to making the most appropriate decisions to secure themselves and their businesses. Continue reading “Sponsored briefing: Piloting maritime law in Egypt”

Sponsored briefing: Challenges facing the cement industry in Egypt

The cement industry is one of the oldest industries in Egypt, with more than a century of experience, and a total of 18 plants throughout the country. For decades, the cement industry was one of the most profitable business in Egypt, with EBITDA margin above 30%. Following the Arab Spring in early 2011, the cement industry is facing two main challenges, the increase of the production cost and capacity as outlined below.

1. Increase of the Production Cost

a) Egypt’s cement producers used to run their plants on gas as a main source of energy. However, after the Egyptian revolution in 2011, the gas price went significantly high from US$2 per mBtu to US$6 per mBtu, which consequently entailed the increase of the production cost.

As an alternative, the biggest cement companies started to invest in coal and petroleum coal as a source of energy, in order to reduce the production cost. The immediate impact was the heavy investment in coal mill, regardless of the environmental impact.

The coal is mostly imported, with difficulties related to the instability of the international market price, and the freight that can be delayed, as we recently witnessed the Suez Canal blockage crisis. In addition, in late 2016, the Central Bank of Egypt decided to fully float the Egyptian Pound and the latter lost half of its value.

b) In 2014, Law No. 198 of 2014 on the Mining Wealth was issued, as amended (the Mining Law), and has drastically increased the value of the minerals and raw materials, which are essential to the cement industry. The increase reached more than 500 times the prices previously paid by the producers.

The legislator, in application of the principle of non-retroactivity of the law, explicitly stipulated that all existing contracts concluded under previous laws shall remain in force under the provisions of such laws till the expiration of the relevant licence, when the provisions of the Mining Law will prevail. The first paragraph of Article 3 of the Articles of Issuance of the Mining Law states that:

‘The quarries licences that were issued prior to the effective date of the New Mining Law as well as the terms thereof shall remain and continue to be valid and in force. However, upon renewing the said licences; the provisions stated in the New Mining Law, regarding the annual rent, royalties and research and exploitation licence fees, shall be applied.’

Furthermore, the Egyptian State Council’s General Assembly of Advising and Legislating Sections issued an advisory opinion, confirming that the increase in the value of the annual rent and royalty, introduced by the Mining Law, shall not apply on ongoing contracts, unless the parties agreed otherwise or upon renewal of the duration of the contracts.

As a consequence, the cement companies having ongoing valid contracts started to negotiate the raw materials’ cost with the competent authorities, namely the governorates, in order to reach a reasonable price for all parties involved. Unfortunately, most of said companies failed to reach an agreement thereon and some were forced to escalate the issue before the Investment Dispute Resolution Committee at the General Authority for Investment and Free Zones (GAFI).

In addition, Law No. 193 of 2020 has transferred the management and exploitation of the quarries to the Egyptian Company for Mining Management and Exploitation of Quarries and Saline, an Armed Forces related company.

2. Increase of the Production Capacity

In 2014, a new player joined the industry. The Egyptian government started to invest in cement plants, in order to supply the needs of the government for national projects and infrastructures and decrease the cement price.

Today, the state-owned cement companies represent around 25% of the Egyptian production capacity.

These new state-owned cement companies contributed to an over-capacity of the Egyptian cement market and therefore heavily impacted the cement price, which has dropped since then.

Unfortunately, the increase of the production cost of the cement, as explained above, had an impact on the competitiveness of Egypt in the industry and export of cement to nearby countries, essentially because the production cost in other countries is lower, as is the case in Turkey, playing today one of the leaders of the cement market in the region.

Therefore, the option of exporting the over-capacity abroad is not even considered by the Egyptian producers.

Following several meetings between the Minister of Industry and Trade and the Cement Association, the Egyptian government considers the possibility of decreasing the gas price and also decreasing the market production capacity to reach 65% of the current capacity, pro rata to each producer’s share in the market, and increasing the cement price.

However, to date, the Egyptian government did not issue any decree to resolve the said challenges and the cement producers are frustrated for the lack of any concrete decision therefrom. Many are considering decreasing their investment in Egypt and others are considering filing a case before the International Centre for Settlement of Investment Disputes (ICSID) against the Egyptian government.

For more information, please contact:

Frederic Soliman
Managing partner
Soliman, Hashish & Partners

E: [email protected]
T: +2 0122 0800 290

www.shandpartners.com

Global London: Turbulence expected

Overview: Flying hiatus

Covid-19 has intensified the divide between the Global London firms that have really taken off and those that remain grounded

Focus: Cooley

Focus: Simpson Thacher & Bartlett

Main table

Non-US firms in London: On standby

Five years ago, partners at European firms’ London offices voiced their fears over the possibility of the UK leaving the EU. What happens now this is reality?

The Last Word: Law in a time of Covid

To mark the launch of our 2021 Global London report, we asked senior figures at leading US firms for their thoughts

Sponsored briefing: Paul Hastings – Running a people business

London chair Arun Birla discusses maintaining the personal touch in a time of Zoom fatigue

Revolving doors: Gibson Dunn recruits Hong Kong regulatory team as CC expands funds practice

Hong Kong illustration

Gibson Dunn has significantly strengthened its Hong Kong bench after hiring a four-lawyer regulatory team from Herbert Smith Freehills.

Arriving with three associates, partner William Hallatt brings a broad Asia Pacific practice focused on contentious and advisory regulatory advice for major global financial institutions. Gibson Dunn chair and managing partner Ken Doran described Hallatt as ‘a terrific addition to the firm.’ He added: ‘He has built a leading cross-Asia practice as a trusted advisor on financial services regulatory issues, and his deep experience, strong relationships and market knowledge will integrate seamlessly with our leading global regulatory enforcement platform.’ Continue reading “Revolving doors: Gibson Dunn recruits Hong Kong regulatory team as CC expands funds practice”

Sponsored briefing: Surprise decision ban as a novelty in Turkish labour law

Yavuz & Uyanik & Akalin’s Murat Uyanik on the importance of the rule of law and the right to legal certainty in Turkish law

Labour Law in Turkey is one of the areas of law in which the most lawsuits are filed and with the highest number of file transfers to the Supreme Court, until the recent launch of the Appeal Courts. This matter is confirmed with the data published by the Ministry of Justice at the end of 2019. According to the relative data, 1,513,943 labour cases were filed between the years 2012 and 2019. According to the aforementioned data, the number of ongoing cases at the end of the year 2019 is 543,692. Upon the multiplying increase in the number of labour cases each year and the Supreme Court’s failure to bear the litigation burden, it has also been observed that the number of chambers coping with labour law disputes has increased to three in the last decade. Continue reading “Sponsored briefing: Surprise decision ban as a novelty in Turkish labour law”

Sponsored briefing: Product Safety And Technical Regulations Law Numbered 7223 and the compensation liability of the manufacturer

As part of the European Union harmonisation process, the Turkish parliament has adopted the Product Safety and Technical Regulations Law (the PSTRL). The PSTRL, published on 12 March 2020, has entered into force one year after its publication just recently, on 12 March 2021. Just before the PSTRL entered into force, the General Product Safety Regulation was also published. The provisions regarding PSTRL are prepared considering the European Union Product Liability Directive dated 1985. By the promulgation of PSTRL, which has been expected for a long time and is an important part of the EU harmonisation process, the product liability has been regulated as a whole through a general act of parliament. The doctrine, which was in the expectation of a law that complies with EU regulations, has long advocated the need of regulating the manufacturer’s absolute responsibility not only to the consumers but also to all third parties.

PSTRL’s main purpose is to regulate in detail the requirements in relation to the safety of all kinds of products, and in case of contradiction with such requirements to ensure that the responsible party, such as the manufacturer or importer, provides appropriate compensation for the damages caused by the non-conforming product to the customer’s health or property.

The products that are exported or aimed to be exported to the EU member states are deemed presented to the market within the scope of this law. On the other hand, the products that are exported and planned to be exported to countries other than those within the EU are excluded from scope of PSTRL. Nevertheless, these products must also be safe, not subject to adulteration, and the marking, labelling and certification of the product must be done in a manner that will not mislead the buyer.

The responsible persons from product liability are defined in PSTRL as the manufacturer or importer of the product.

Obviously, not only consumers can be harmed by a product, but non-consumers also need protection as well. Despite this obvious need of a general rule, there is no regulation in law on the Protection of the Consumer and also in the Turkish Code of Obligations regarding the product liability. In fact, PSTRL was adopted as a response to the urgent need of a special regulation of the product liability, and the gap related to this matter under Turkish law. Thus, the standard of the EU that the responsibility of the manufacturer is not only towards the consumers, but against all third parties, has been introduced in Turkey as well.

PSTRL uses the concept of inappropriate product instead of failure or defective product as a condition of the product liability to be triggered. In accordance with the PSTRL, no limitation has been made in the responsibility of the manufacturer, in terms of both personal and property damage, or pecuniary and non-pecuniary damage.

It was designated in article 21 of the PSTRL how the liability of the manufacturer or importer will be extinguished as well. Since the product is considered safe as a presumption pursuant to PSTRL article 5, the manufacturer or importer can avoid responsibility by proving the product’s compliance with the technical requirements regarding human health and safety. So the manufacturer or importer companies should prepare their set of arguments towards potential claims, that has to be based on the ‘compliance with technical requirements’.

In addition to the above, there are other remarkable novelties in PSTRL that especially aim to ensure the safety of consumers including in e-commerce. Pursuant to article 17 of PSTRL, access to the web pages that sell or advertise inappropriate products will be denied. Furthermore, in order to maintain transparent background for the consumers, the names of all of the persons in the supply chain will be recorded. This traceability will also provide an opportunity to prevent informal economy. Once a product is detected to be inappropriate, these products will be recalled from the market and this will provide the safety of the consumers.

The spectrum of the PSTRL is so broad that, the companies that are no party to any contract with the damaged person, such as car manufacturers, durable goods manufacturers, spare parts manufacturers, etc. would be legally responsible without question. In some cases insurance companies may request their recourse claims that have resulted from adulterated goods, from manufacturers or importers. Therefore global manufacturing companies and their importer affiliates may face direct claims from Turkey within the scope of the PSTRL. We hope that with PSTRL, the safe economic conditions for both national and foreign investors globally will be established and not only consumers, but also everyone who suffer from the hazardous effects of inappropriate products will be protected.

For more information, please contact:

Mehmet Selim Yavuz

Yavuz & Uyanik & Akalin
Etiler Mahallesi Tepecik Yolu No:82 Dalmaz Konut Apt. K:3 D:5 34337 Etiler, Beşiktaş

T: +90 212 351 30 50
E: [email protected]

www.yualaw.com

Sponsored briefing: Is Turkey’s first regulation on crypto-assets just a beginning?

Although it remains unclear whether cryptocurrencies will replace traditional money in the near future or ever, they have become a global phenomenon lately. Likewise, the economic turbulence in Turkey has led to a surge in swapping the local currency for cryptocurrencies despite their price volatility. According to a recent survey, Turkey has the fourth-highest rate of cryptocurrency use out of 74 countries1.

Background of Recent Developments

With the growing popularity of the crypto market in Turkey, the government’s concerns about using cryptocurrencies for illegitimate activities such as money laundering, terrorist financing, and tax evasion have gradually increased. As a response to all these matters, the signals of the legislative framework for the crypto-assets have been given under Turkey’s 11th Development Plan2. Turkey’s economic roadmap also unveils that the Central Bank of the Republic of Turkey shall foster the financial, technologic, and legal infrastructure of digital money by the end of this year3. Continue reading “Sponsored briefing: Is Turkey’s first regulation on crypto-assets just a beginning?”

Sponsored briefing: Recent arbitration developments in Turkey

Turkey has been experiencing an upward trend in both international and domestic arbitration especially in the last decade as the practitioners have become more experienced, scholars have been more active in addressing controversial issues and most importantly the case law was significantly developed in the arbitration-related matters.

Pro-arbitration stance of Turkish courts

Barring a few controversial decisions, it would be fair to say that in recent years, the arbitration-related matters dealt by the Turkish courts have become much more sophisticated and the courts have solidified their stance regarding the essential matters of arbitration by rendering arbitration-friendly decisions. There have been several decisions where the courts have applied the principles of separability and prohibition of révision au fond more strictly and without hesitation. Continue reading “Sponsored briefing: Recent arbitration developments in Turkey”