Multiparty arbitration in intra-corporate disputes

Document Type : Scientific research

Authors

• Mohammad Rostami ¹
• Bahram Taghipour ²

¹ PHD. student

² Yousef Abad, Seyed Jamaluddin Asadabadi St., corner of Fathi Shaghaghi St., Art Tower, No. 22, third floor, Unit 10

https://doi.org/10.22067/economlaw.2022.74696.1136

Abstract

In the current era, the emergence of various types of Corporation and the expansion of their activities, has underlied the way for new legal issues regarding these individuals. One of these issues is the use of arbitration in intra-corporate disputes. Although arbitration in intra-corporate disputes is accepted in the legal system of most countries and is used in practice by many corporations, in some cases, this issue is associated with many complications due to the multiplicity of elements or around the differences. One of the things that complicates the arbitration of internal disputes is when the arbitration is multiparty. For this reason, the present article examines multiparty arbitration in intra-corporate disputes. In this regard, after explaining the challenges in multiparty arbitration, the conditions for merging existing disputes have been examined. The findings of this study, based on a comparative study, indicate that in most legal systems, not only the use of general arbitration rules due to the specific characteristics of corporations, does not solve the existing challenges, but also there are not comprehensive laws and sufficient jurisprudence regarding these disputes.

Keywords

• Merger of arbitrators
• Shareholders
• Appointment of arbitrators
• Intervention
• Due process of law

References

•  

   

  REFERENCES

  • Abedi Firoozjaei, Ebrahim. (2019). A speech on the philosophy of corporate law; Commercial Company, Creature of Spontaneous Order or Artificial Order?, Quarterly Journal of Private Law Studies, Volume 49, Number 1. (In Persian)
  • Amir Moezi, Ahmad. (2009). International Arbitration in Commercial claims, Tehran, Dadgostar Publishing, Second Edition. (In Persian)
  • Born, Gary. (2016), International arbitration: law and practice. Wolters Kluwer.
  • Christian, Borris. (2012) Arbitrability of corporate law disputes in Germany”, German Arbitration Institute (DIS).
  • Cremades, Bernardo M., and Ignacio Madalena. (2008). Parallel proceedings in international arbitration." Arbitration International 24.4.
  • Giovanni M. Ughi. (1980). The Use of Arbitration Clauses in Governing Instruments of Corporate Entities as a Means of Settling Disputes among Shareholders or among Companies and their Shareholders. 8 Int'l Bus. Law.
  • Holtzman, Robert A(2008). "The Role of Arbitrator Ethics." DePaul Business and Commercial Law Journal, 7(3).
  • ICC Commission on International Arbitration.(1995). ‘Final Report on Multi-party Arbitrations’, in 6 ICC International Court Arbitration Bulletin, no. 1.
  • Joneidi, Laia(2009). Execution of Foreign Commercial Arbitration verdicts, Tehran, Shahr-e Danesh, First Edition. (In Persian)
  • Kashani, Javad and Sheykhiani, Mehdi.(2011). ICC Arbitration Rules on Multiple Parties, and Multiple Contracts, Bi-Quarterly Journal of Legal Research, No. 19. (In Persian)
  • Khedri, Saleh. (2014). Procedural principle in International Commercial Arbitration, Quarterly Journal of Private Law Studies, Volume 44, Number 4. (In Persian)
  • Khedri, Saleh. (2015). Fair Trial in International Commercial Arbitration, Comparative Law Studies, Volume 6, Number 2. (In Persian)
  • Khodabakhshi, Abdullah. (2014). Arbitration Law and related disputes in judicial procedure, Tehran, Anteshar Co., Third Edition. (In Persian)
  • Khodkar, Reza and Rahmati, Parviz. (2021). Majority Rule in Joint Stock Companies; Principles and Territory, Tehran, Anteshar Co., First Edition. (In Persian)
  • Kondev, Dimitar. (2017). Multi-party and Multi-contract Arbitration in the Construction Industry. John Wiley & Sons.
  • Lee, Joseph. (2017). "Intra-corporate dispute arbitration and minority shareholder protection: a corporate governance perspective." Arbitration: The International Journal of Arbitration, Mediation and Dispute Management 83.1.
  • Mafi, Homayoun and Tari, Hossein. (2015). Validity of Res Judicata of Arbitration Awards in the Iranian and American Law, Comparative Law Research, Volume 19, Number 4. (In Persian)
  • Nana Adjoa Hackman.(2009). the Problem of Arbitration & Multi-Party / Multi-Contract Disputes: Is Court-Ordered Consolidation an Adequate Response? University of Dundee.
  • Olivier, Caprasse. (2006). ‘The Setting up of the Arbitral Tribunal in Multi-Party Arbitration’, in International Business Law Journal, no. 2.
  • Oluomi Yazdi, Hamidreza and Derakhshannia, Hamid.(2018) Court intervention in appointing an arbitrator; Legal Pathology, Judicial Procedure and Model Presentation, Quarterly Journal of Private Law Research, Year 6, Issue 22. (In Persian)
  • Peter, Kraft. (2010) “German Federal Court of Justice refines the criteria for the admissibility of arbitration clauses: Bundesgerichtshof (II ZR 255/08) Case Comment” 13, 1 International Arbitration Law review.
  • Raeschke-Kessler, Hilmar (2012) "The Arbitrability of Intra-corporate Disputes in a German GmbH–A Comment on OLG Frankfurt am Main, 2010." Essays in Honour of Hans Van Houtte/ed. by P. Wautelet, T. Kruger & G. Coppens. Oxford, Hart Publishing.
  • Redfern, Alan, and Martin Hunter. (2015). Law and practice of international commercial arbitration. Sweet & Maxwell. Sixth Edition.
  • Taghipour, Bahram and Abedi, Hossein.(2019). The approach of the Iranian legal system to the key features of the corporate governance system, Quarterly Journal of Private Law Studies, Volume 49, Number 3. (In Persian)
  • Taghipour, Bahram. (2013). Confidentiality of Arbitration, Private Law Quarterly, Year 10, No. 2, (In Persian)
  • Tahmasebi, Ali.(2015). Reflections on disputes Derived from the Perspective of Judicial Law, Bi-Quarterly Journal of Civil Law Knowledge, Fourth Year, No. 2. (In Persian)
  • Thomas, Lennarz.(2010). “Germany: GmbH shareholder disputes now arbitrable Case comment” 76, 2 Arbitration.
  • Uyar, Aysel Cetinkaya. (2017). "Arbitration of Intra-Corporate Disputes in Turkish Law." Peter Lang Publishing.
  • Wendy Kennett. (2013). “Arbitration of intra-corporate disputes” International Journal of Law and Management, vol 55, issue5.
  • Yingvoragan, Pakorn. (2019). The Use of Arbitration in Corporate Disputes: International