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.
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