Dispute Resolution, Litigation, Arbitration

Arbitration of Intra-Corporate Disputes in the Philippines

In SEC Memorandum Circular No. 8, series of 2022 issued on 19 September 2202, the Securities and Exchange Commission (SEC) provided for the guidelines allowing Philippine corporations to resolve intra-corporate disputes promptly through arbitration.

The guidelines state that where there is an arbitration clause in a corporation’s Articles of Incorporation, By-Laws or in a separate agreement, disputes between the corporation, its stockholders or members shall be referred to arbitration conducted by a designated independent party. This arbitration agreement is binding on the corporation, its members, officers and members.

The SEC warns, however, that arbitration agreements that do not comply with such requirements shall be unenforceable.

With these guidelines, there is now a simpler, speedier, more peaceful, and less expensive option than court litigation in resolving intra-corporate disputes.

Click here to read the full text of SEC Memorandum Circular No. 8, Series of 2022.

Disclaimer: The information in this website is provided for general informational purposes only. No information contained in this post should be construed as legal advice from Platon Martinez or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances.