Page:Arbitration Ordinance (Cap. 609).pdf/70

(c) that subcontract also includes an arbitration agreement (“subcontracting parties’ arbitration agreement”) in any form referred to in section 19,

then all the provisions in Schedule 2 also apply, subject to section 102, to the subcontracting parties’ arbitration agreement.

(2) Unless the subcontracting parties’ arbitration agreement is an arbitration agreement referred to in section 100(a) or (b), subsection (1) does not apply if—

(a) the person to whom the whole or any part of the relevant operation is subcontracted under the subcontract is—

(i) a natural person who is ordinarily resident outside Hong Kong;

(ii) a body corporate—

(A) incorporated under the law of a place outside Hong Kong; or

(B) the central management and control of which is exercised outside Hong Kong; or

(iii) an association—

(A) formed under the law of a place outside Hong Kong; or

(B) the central management and control of which is exercised outside Hong Kong;

(b) the person to whom the whole or any part of the relevant operation is subcontracted under the subcontract has no place of business in Hong Kong; or

(c) a substantial part of the relevant operation which is subcontracted under the subcontract is to be performed outside Hong Kong.

(3) If—

(a) all the provisions in Schedule 2 apply to a subcontracting parties’ arbitration agreement under subsection (1);

(b) the whole or any part of the relevant operation that is subcontracted under the subcontract is further subcontracted to another person under a further construction contract (“further subcontract”); and

(c) that further subcontract also includes an arbitration agreement in any form referred to in section 19,

subsection (1) has effect subject to subsection (2), and all the provisions in Schedule 2 apply, subject to section 102, to the arbitration agreement so included in that further subcontract as if that further subcontract were a subcontract under subsection (1).

(4) In this section—