Arbitration of Corporate Disputes: Shall We Begin?

Starting from 1 February 2017 the parties to the majority of corporate disputes are allowed to submit their claims to arbitration administered by a permanent arbitration institution.

In other words, legal entities, its corporate members and counterparties can enter into arbitration agreements with respect to all types of arbitrable corporate disputes (ex. disputes related to the annulment of corporate resolutions or those related to the damages inflicted to the legal entity and claimed by its corporate members or those related to the powers and liability of the members of its governing and controlling bodies etc.). In particular, the arbitration agreement can be included into the charter of the legal entity.

Under the new Russian legislation on arbitration in force since 1 September 2016, the majority of corporate disputes can be submitted to arbitration administered by a permanent arbitration institution.

The new Law on Arbitration provides for a specific requirement with respect to particular types of arbitrable corporate disputes: arbitration shall be conducted under the special rules on arbitration of corporate disputes developed and adopted by permanent arbitration institutions.

The Law envisages a transition period: arbitration agreements with respect to these types of corporate disputes concluded before 1 February 2017 are not enforceable.

More information on the arbitration of corporate disputes can be found on Corporate disputes in arbitration as of 1 February 2017. Questions and answers (in Russian).