Companies tapping arbitration in settling intra-corporate disputes should include an arbitration agreement in their articles of incorporation or bylaws, according to the Securities and Exchange Commission (SEC)..
“Such agreements must contain the number of arbitrators; the designated independent third party who shall appoint the arbitrator/s; procedure for the appointment of the arbitrator/s; and the period within which the arbitrator/s should be appointed by the designated independent third party,” the SEC said, following the release of the draft rules that will cover how companies can tap arbitration to settle company’s internal disputes.
“With an arbitration agreement in place, disputes between the corporation, its stockholders or members that arise from the implementation of the articles of incorporation, bylaws, or from intra-corporate relations, shall be referred to arbitration,” it said.
“The seat of arbitration is presumed to be the Philippines, unless otherwise stated,” the SEC added.
The draft rules aim to operationalize Section 181 of the Revised Corporation Code of the Philippines (RA11232), which allows corporations to refer intra-corporate disputes to arbitration.
