Mediation of corporate disputes

In a world where conflicts are an integral part of our lives, there is a need for methods of solving them, which would be not only effective but also less expensive in terms of time, money, and emotional costs.

Mediation is a process that meets all of these criteria, offering an alternative way to resolve differences between parties without going to court.

What is mediation? It is a form of alternative dispute resolution in which a neutral third party — a mediator — helps the conflicting parties find a mutually acceptable solution.

An important feature of mediation is that the parties themselves develop and make a decision that is in their best interests, rather than being imposed by a judge or a third party.

We offer the service “Mediation in the field of corporate management”

Who is it suitable for?

• Internal disagreements in the Council

Disagreements within the Council are commonplace, especially when its members are independent, gifted, experienced, and open to discussion.

Such interaction promotes positive development, as decisions are made on the basis of careful discussion and analysis of available information.

Topics for discussion may include strategic plans, corporate oversight, avoiding conflicts of interest, and setting executive compensation.

A board without debate or different points of view can become inactive and ineffective, which, as the example of the WorldCom bankruptcy in the US shows, leads to undesirable consequences for the company.

According to a Delaware Court decision in 1985, a Board that does not focus on analyzing important issues before making decisions does not perform its duties properly.

Conflicts in the field of corporate governance can be a source of misunderstandings and contradictions, covering the interactions between independent directors and the chief executive officer, the differences between control and management, the need for information, and finding a balance between the short-term and long-term interests of the company.

• Disputes in corporate governance

Conflicts in corporate governance often involve interactions between shareholders, board members, and senior management.

When it comes to company employees (other than senior management), such disputes are considered labor disputes, although they can also affect management. Conflicts with external parties are usually treated as commercial disputes.

Disputes may include conflicts of interest, elections to the Board, the amount of compensation, termination of Board members or management, stock valuation, terms of mergers and acquisitions, among others.

• Disputes related to the distribution of profits

If you are going to start a business with a partner and cannot agree on the management of the company, the distribution of profits and the division of rights and responsibilities within the firm, this can lead to conflicts.

Interesting fact:

From 2001 to 2006, 20% of disputes settled by the International Chamber of Commerce were related to corporate governance.

This included share valuation, shareholder disputes, board remuneration, bankruptcy, shareholder participation, and takeover matters.

Advantages of mediation:

• Privacy: The mediation process is completely confidential. This means that anything you discuss during our session cannot be used against the parties in court or anywhere else.
• Control: The parties have more control over the outcome of mediation than in litigation, where the decision is made solely by the court.
• Flexibility: Mediation allows for creative and flexible solutions that can meet the needs of both parties.
• Reducing tension: The process helps to improve communication between the parties, which can reduce the level of conflict and contribute to the restoration of relations.
• Saving time and money: Mediation usually takes less time and costs less than litigation.

The lawyers of the company “Prikhodko and Partners” will provide you with information about how mediation works, what steps must be taken to start it, as well as a list of qualified mediators who can help you resolve the conflict.

We offer professional mediation services for various types of disputes, including commercial disputes, family business disputes, and employment disputes.

Whether your conflict involves family-corporate relationships, business partnerships, property disputes, or other legal matters, mediation can offer a path to peace and understanding without the need for a long and tedious court process.

Contact us today to learn more about how mediation can be your conflict resolution solution. Our team of experienced mediators is ready to help you find a peaceful solution that will take into account the interests of all parties.

We believe that every conflict can be resolved and every problem has a solution. Mediation is your first step towards restoring harmony and achieving mutual understanding.