Arbitrability Of Corporate Disputes Research Articles

Arbitrability of Corporate Disputes: Development Tendencies

Arbitrability of Corporate Disputes: Development Tendencies

The Arbitrability of Corporate Disputes After Fulham Football Club V. Richards: A Decade On

In Fulham Football Club (1987) Ltd v. Richards and The Football Association Premier League Ltd, the Court of Appeal of England and Wales settled a controversial matter, finding that unfair prejudice petitions under section 994 of the English Arbitration Act 1996 could be referred to arbitration. At the time the judgment was handed down, it was met with some scepticism with commentators arguing that it would lead to inconsistency and confusion in the arbitrability of disputes and the remedies that can be awarded in arbitration. In the years that followed, the Court of Appeal’s judgment has been relied on in the development of the arbitrability of corporate disputes in England and Wales and several other common law jurisdictions. On the occasion of the ten-year anniversary of the Fulham decision, this article explores whether the confusion and inconsistency that commentators predicted have, in fact, materialized. Arbitrability, Arbitration Act 1996, Corporate disputes, Fulham Football Club v. Richards, Remedies, Section 994, Unfair prejudice

Arbitrability of Corporate Disputes: Analysis of Some Issues Arising as a Result of the Reform of the Arbitration Legislation

Arbitrability of Corporate Disputes: Analysis of Some Issues Arising as a Result of the Reform of the Arbitration Legislation

Arbitrability of Corporate Disputes: National Realities and Foreign Experience

The tendency to promote alternative ways of resolving disputes and their effectiveness leads to the expansion of the scope of their application. The relevance of corporate dispute arbitration relates to the rising number of multinational corporations and the general tendencies of globalization and regionalization of the world economy. To identify the main tendencies in the development of national legislation, it is necessary to study the genesis of corporate dispute arbitrability. The purpose of the paper is to determine the scope of corporate disputes that may be submitted to the consideration of international commercial arbitration (arbitrable corporate disputes) under the current legislation of Ukraine (in particular, in light of the reform of procedural legislation in 2016) and the prospects for the dynamics of corporate arbitrability in the future. The tasks of the paper are to analyze the genesis of corporate dispute arbitrability; to analyze the legislation of foreign countries on arbitrability of corporate disputes; analysis of the efficiency of corporate litigation in international commercial arbitration; research into the expediency of expanding the range of arbitrable corporate disputes in the national legislation of Ukraine. There was a negative tendency in the Ukrainian legislation, formed by the current version of the COD of Ukraine, regarding the classification of at least a significant part of corporate disputes in the category of non-arbitrable, which not only does not correspond to the general global tendencies in this area, but also significantly reduces the level of investment attractiveness of Ukraine.

The Russian arbitration reform

Russia adopted new federal laws largely reforming its arbitration industry. This reform is intended to address a number of recurring issues and to modernize the Russian arbitration rules. As one of its main facets, the new Russian arbitration law expressly provides for arbitrability of corporate disputes, subject to a number of caveats and conditions. Moreover, the reform legislation provides for quality controls on arbitration institutions, including mandatory permits and other ongoing requirements. Finally, the new Russian arbitration law also addresses a number of other topics, including changes in arbitration-related litigation as well as a number of procedural changes. The reform is expected to have a significant impact on the Russian arbitration landscape.

Arbitrability of Corporate Disputes in Russia: To Be or Not to Be

This paper discusses the possibility of adjudication by arbitration of corporate disputes, including disputes arising from shareholders' agreements. The article analyzes the relevant Russian legislation and court practice and contrasts it to the approaches of common law jurisdictions to these issues.Currently, the transfer of corporate disputes to arbitration in Russia involves substantial risks for the participants in these disputes. In many cases, the Russian state commercial courts take the position that corporate disputes are not ‘arbitrable’ since the state commercial courts have exclusive jurisdiction over such disputes.In common law jurisdictions, by contrast, corporate disputes (particularly those disputes arising out of shareholders’ agreements) may be referred to arbitration and be adjudicated according to a foreign law as chosen by the parties. Only in a few cases will the jurisdiction of arbitral tribunals be denied and the dispute resolution clauses and the provision of the chosen applicable law be ignored: if such is contrary to public policy or the mandatory rules of corporate law, or if it violates the rights of third parties.

The Nonarbitrability of Corporate Disputes in Russia

In a recent case, Novolipetsk Metallurgical Company v. Maximov Russia's highest commercial court, the Supreme Arbitrazh Court, has ruled that corporate disputes are not arbitrable in Russia. This article examines the Court's decision on the arbitrability of corporate disputes and contrasts it with other decisions in Russia and elsewhere that have broadened the scope of arbitrability. The conclusion is that the Maximov decision by Russia's highest commercial court makes Russia less hospitable to international commercial arbitration and runs counter to other measures being taken in Russia to make it a center for international commercial arbitration.

Objective Arbitrability of Corporate Disputes — the German Perspective

In general all matters of inter-corporate disputes are arbitrable under German law, provided that they are covered by a valid arbitration clause. Such an arbitration clause may be part of the articles of association of the company. There are no limitations as far as GmbHs and partnerships are concerned. However, the articles of association of a stock corporation, quoted on a stock exchange, may not contain an arbitration clause. They state courts have exclusive jurisdiction over disputes concerning the validity or nullity of shareholders' resolutions by such stock corporations. All other corporate disputes within a stock corporation may be covered by an individual arbitration agreement.