kaal:claim:617681-042

Unless the Member State of incorporation specifically provides in its corporate statute that arbitration is permissible when allowed in the charter or a shareholders agreement, investors run the risk that courts refuse to enforce the arbitration provision.

Source quote, verbatim

specifically provide in its corporate statute that arbitration is permissible if allowed in either the corporate charter or (for a closely held corporation) in a shareholders' agreement. Otherwise, investors run the risk that courts refuse to enforce the arbitration provision.

From

Christian Kirchner, Richard W. Painter, Wulf A. Kaal, Regulatory Competition in EU Corporate Law after Inspire Art Unbundling Delaware's Product for Euro (2004), E.III.3 The Legal Standing of Arbitration in Europe, p. 50
https://ssrn.com/abstract=617681 · source PDF

Cite as

Christian Kirchner, Richard W. Painter, Wulf A. Kaal, Regulatory Competition in EU Corporate Law after Inspire Art Unbundling Delaware's Product for Euro (2004). SSRN: https://ssrn.com/abstract=617681

Holds when

closely held corporations may rely on a shareholders agreement instead of the charter

Classification

conditionsupport: arguedfailure: unenforceable-charter-arbitration-clausefamily: enforcement-gaplaw-and-legal-systemsgovernance-design

Verify

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