A comparative study of accepting a legal entity as an arbitrator

Document Type : Academicm and Research

Authors

1 Full professor, Department of Law, University of Tehran (Pardis Farabi), Tehran, Iran.

2 Phd Student in Private Law,University of Tehran (Pardis Farabi), Tehran, Iran.

3 Assistant professor, Department of Law, University of Tehran (Pardis Farabi), Tehran, Iran.

Abstract

Arbitration is always done in two conventional ways, case and organizational, by natural persons, but recently the issue of legal person arbitration has been raised. Meaning a legal person acts as an arbitrator, not supervising or administering, but the arbitration award is issued in his name. Legal person, as an arbitrator does not have same and specific position in legal systems. In this article, we intend to provide a clear picture of the position of a legal entity and limitations in playing the role of an arbitrator through comparative analysis. This research is of theoretical type and the data collection is library and has been done by referring to enacted law, international documents, books and articles. The findings show that there is difference of opinion between legal systems regarding acceptance of legal entity arbitration. Some countries explicitly consider arbitration exclusive to a natural person. The UNCITRAL model law, the New York Convention, and some countries have created the possibility of accepting legal entity arbitration with an open approach. The research results show if the applicable law does not limit arbitration of a legal entity, the legal entity can perform its duties as an arbitrator and if the applicable law does not accept the arbitration of a legal entity, it may be faced with the legal sanctions such as annulment of the award or the impossibility of its execution.

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References

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Comparative Studies on Islamic and Western Law
Volume 11, Issue 4 - Serial Number 42
December 2024
Pages 113-132

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