Arbitration, Mediation & Conciliation Division

Empowering Parties to Reach Mutually Acceptable Outcomes Beyond the Courtroom


Arbitration is a form of alternative dispute resolution (ADR) in which parties involved in a conflict agree to submit their dispute to an impartial third party, called an arbitrator, who acts as a private judge. The arbitrator listens to both sides, considers evidence and arguments, and renders a binding decision called an arbitration award.

In the boardroom, arbitration plays a crucial role in resolving conflicts and disputes among board members or between the board and management.

Here's how arbitration benefits the boardroom:

(1) Confidentiality:

Arbitration provides a confidential forum for resolving disputes. This ensures that sensitive boardroom matters, including internal disagreements or conflicts of interest, can be addressed without public scrutiny, preserving the organisation's reputation.

(2) Expertise and Neutrality:

Arbitrators are typically experts in corporate governance and dispute resolution. Their knowledge and experience enable them to understand the unique dynamics and complexities of boardroom conflicts. They offer impartial guidance and make informed decisions based on the facts and applicable laws.

(3) Efficiency:

Arbitration is often more efficient than traditional litigation. It allows boards to resolve disputes in a timely manner, minimizing disruption and allowing the board to focus on critical business matters. The arbitration process can be streamlined and customised to meet the specific needs of the board and the parties involved.

(4) Preserving Relationships:

Boardroom conflicts have the potential to strain relationships and hinder effective decision-making. Arbitration provides a structured process that encourages open dialogue, respectful communication, and collaborative problem-solving. It aims to preserve relationships within the board and promote a harmonious working environment.

(5) Enforceability:

Arbitration awards are generally binding and enforceable. This means that the decisions reached through arbitration have legal weight, providing a clear resolution to disputes. It ensures that the board's decisions and actions are upheld and complied with by all parties involved.

By utilizing arbitration in the boardroom, organisations can effectively address conflicts, maintain boardroom harmony, and ensure that important governance matters are resolved in a fair and efficient manner. It allows boards to navigate disputes while preserving the integrity and effectiveness of their decision-making processes.