Corporate disputes and their resolution. Corporate relations

Man is a social being. That is why he joins all kinds of organizations or cooperatives. That's why there are firms, corporations, large and small groups. But no matter how man is a highly developed being, he can not avoid conflict situations. Disputes are different - some can peacefully settle among themselves, and in others the economic court is involved. Such disputes are called corporate, 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 relationships that arise within a company, firm 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 of a property nature.
• Personal relationships that are non-property.
• Those that do not carry either personal or property character.
• Organizational relations.
• Independent legal relations.
• Bearers of property and non-property nature.

In the process of interaction, participants in corporate relations can enter into discussions - corporate disputes.

Participants in the discussion

Corporate disputes are conflict situations that can be of a different nature. They differ from conventional quarrels by the availability of legally certified documents. Frequently, participants in corporate disputes are the legal entity, private entrepreneurs, commercial and non-profit organizations. As the legal practice shows, shareholders and business partners take an active part in corporate disputes. However, recently there has been a tendency, when the participants of disputes are the business organization and the public.

What is a dispute about?

A prerequisite for the emergence of controversial situations may be various misunderstandings. Some of them can be easily solved on the spot, but for the solution of others, notaries are often involved, or everything is settled in court. Most often in the court cases on corporate disputes have the following content:

• Adoption of an unlawful decision at a general meeting.
• Refusal to pay your share of the share (violation or delay).
• Conclusion of transactions that do not comply with the adopted legislation.
• Signing of transactions that have personal benefits to participants and damage to the public.
• An unnecessary decrease in the previously agreed share.
• Exclusion from the organization for no apparent reason.
• Requirement from the participant in the organization of performance of 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.
• Sale of its share of business that was not previously stipulated, or selling its share at a discounted price.
• Uncoordinated attraction of new participants to the firm.

Disputes related to corporate relations are considered one of the most difficult in legal practice. This can easily be explained by a 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 can be delayed.

How are corporate disputes dealt?

In fact, the state does not have a separate place in the jurisdiction for corporate conflicts. Therefore, all quarrels that arise in the corporation, are considered in the light of the Civil Code. To date, 74% of conflicts are resolved through the economic court. The rest are trying to resolve disputes by attracting private lawyers who help formalize the process of agreement.

When a dispute arises due to the fact that one party has violated its legal and legal obligations, then the corporate conflict is the subject of consideration of the arbitration court. Litigation can be considered at several levels simultaneously. Since such conflicts affect many outsiders, the court must take decisions promptly and fairly.

The procedure for resolving corporate disputes

Every self-respecting corporation must have an organ that is created specifically to resolve corporate conflicts. This body can independently regulate such situations by signing an agreement on the settlement of the conflict. His influence extends to conflicts that arise within one firm. If a corporate dispute arises between companies or the company and the public, then the settlement of the situation occurs in a judicial procedure.

Before the beginning of the conflict settlement, special bodies should objectively assess the whole situation in order to choose the necessary methods of protection. In this process, the parties to the dispute and those whom he may somehow affect, do not intervene.

Disputes can be resolved by signing joint stock and other contracts. Representatives of firms can do this in the presence of a highly qualified lawyer. However, there are cases when the parties can not agree, then the consideration of corporate disputes takes place in court. Sometimes a third person can be involved in resolving the conflict , which will more objectively assess the situation. This practice has long been common in the West.

The practice of conflict resolution

Corporate disputes are under the jurisdiction of the arbitral tribunal. The court examines all existing types of corporate disputes that may arise in the course of the existence of the corporation. The case is examined according to the general rules of the proceedings.

The party that considers itself right, submits a statement of claim. The court considers the claim, notifies all participants in the dispute about accepting the application. The parties provide documentation relevant to the case, and decide in court whether they are right.

Arbitral corporate 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 caused.

The plaintiff can not withdraw the statement of claim, all decisions are made according to the current legislation. The court has every right, when considering corporate disputes, to apply interim measures, which include:

• Arrest of shares and shares.
• Prohibition of any transactions before the end of the trial.
• Prohibition of all transactions and manipulations that relate to the subject matter of the dispute.

Legal relations in the corporation

Corporate legal relations are regulated by law. The laws that establish the framework of corporate behavior are understandable and simple. But at the same time, when disputes arise, it is difficult to solve them with a usual handshake. The signing of new treaties, the creation of peace agreements - all this should be settled in a short time. Corporate disputes are not differences between two individuals, and the conflict, which is like a funnel, drags out all those who in one way or another have a relationship to the conflicting person or corporation.