Man is a social being. That is why he enters into all kinds of organizations or cooperatives. That is why there are firms, corporations, large and small groups. But no matter how a person is a highly developed being, he cannot avoid conflict situations. Disputes are different - some can be settled peacefully among themselves, while in others an economic court is involved. Such disputes are called corporate disputes, and all subjects of corporate relations become their participants.
About Corporate Relations
Corporate disputes arise in the process of developing corporate relations. Let's talk about the latter. Corporate relations are relations that arise within a company, company or organization and are associated with participation in corporate interactions or management. In fact, they are civil law. Corporate relations are divided into several types:
- Those that are property in nature.
- Personal relationships that are non-property.
- Those that are neither personal nor property in nature.
- Organizational relationships.
- Independent legal relations.
- Bearing property and non-property character.
In the process of interaction, participants in corporate relations can enter into discussions - corporate disputes.
Panellists
Corporate disputes are conflict situations that can be of a different nature. They differ from ordinary quarrels in the presence of legally certified documents. Often parties to corporate disputes are legal entities, private entrepreneurs, commercial and non-profit organizations. As legal practice shows, shareholders and business partners are actively involved in corporate disputes. Recently, however, a trend has emerged when the entrepreneurial organization and the public are parties to disputes.
What is the argument about?
The prerequisite for the emergence of controversial situations may be various misunderstandings. Some of them can be easily resolved on the spot, but notaries are often involved to solve others, or everything is settled in court. Most often in court, cases of corporate disputes have the following content:
- Making an illegal decision at a general meeting.
- Refusal to pay part of the share (violation or delay).
- Conclusion of transactions that do not meet the adopted legislation.
- The signing of transactions that bring personal benefit to participants and damage to the public.
- Baseless decrease in previously agreed share.
- Exclusion from the organization for no apparent reason.
- A requirement from a participant in an organization to perform duties that are not assigned to him by the terms of the contract
- Withdrawal of funds by a manager who causes damage to the organization.
- Controversial situations that arise between participants and management.
- Selling your share of a business that was not previously agreed, or selling your share at a lower price.
- Inconsistent attraction of new members to the company.
Disputes related to corporate legal relations are considered one of the most difficult in legal practice. This is easily explained by the variety of controversial situations that may arise in corporate relationships. Moreover, the legislation in charge of corporate disputes is subject to frequent changes, so the dispute resolution procedure may be delayed.
How are corporate disputes considered?
In fact, in the state there is no separate space in the jurisdiction for corporate conflicts. Therefore, all quarrels that arise in the corporation are considered in the light of the Civil Code. Today, 74% of conflicts are resolved through the economic court. The rest are trying to resolve disputes through the involvement of private lawyers who help shape the agreement process.
When a dispute arises because one party violated its legal and legal obligations, then a corporate conflict is the subject of arbitration. Litigation can be considered at several levels simultaneously. Since conflicts of this kind affect many outsiders, the court must make decisions quickly and fairly.
Corporate Dispute Resolution Procedure
Every self-respecting corporation should have a body that is created specifically to resolve corporate conflicts. This body can independently regulate such situations by signing a conflict settlement agreement. Its influence extends to conflicts that arise within one firm. If a corporate dispute arises between companies or a company and the public, the situation is resolved in court.
Before starting the settlement of the conflict, special bodies should objectively evaluate the whole situation in order to choose the necessary protection methods. The participants in the dispute and those whom it may in some way affect, do not intervene.
Disputes may be resolved by signing shareholder and other agreements. Representatives of firms can do this in the presence of a highly qualified lawyer. However, there are times when the parties cannot agree, then the consideration of corporate disputes takes place in court. Sometimes a third party can be involved in resolving the conflict , who will more objectively assess the situation. A similar practice has long been common in the West.
Conflict Resolution Practice
Corporate disputes are under the jurisdiction of the arbitral tribunal. The court considers all existing types of corporate disputes that may arise in the course of the existence of the corporation. The consideration of the case takes place in accordance with the general rules of action.
A party that considers itself right shall file a claim. The court considers the claim, notifies all parties to the dispute about the acceptance of the application. The parties provide documentation that is relevant to the case and decide in court who is right.
Corporate arbitration disputes can be resolved peacefully if the plaintiff accepts the defendant’s proposal, which would be an equivalent substitute for his request or cover the damage.
The plaintiff cannot take the statement of claim; all decisions are made in accordance with applicable law. The court has every right, when corporate disputes are being considered, to apply interim measures, which include:
- Arrest of shares and shares.
- A ban on any transaction before the end of the trial.
- A ban on all transactions and manipulations that relate to the subject of the dispute.
Corporate Relationships
Corporate relations are regulated by law. The laws that set the framework for corporate behavior are clear and simple. But at the same time, when disputes arise, it is difficult to solve them with an ordinary handshake. The signing of new treaties, the creation of peace agreements - all this must be resolved in a short period of time. Corporate disputes are not the disagreements of two separate people, but a conflict that, like a funnel, draws in all those who in one way or another are related to the conflicting person or corporation.