Alternative Approaches To Shareholder Disputes

These cases are usually brought to court. However, because of the long and more expensive road to resolving shareholder disputes, they force most individuals to settle their cases out of court and commit to alternative dispute resolution. If you are looking for alternative dispute resolution services visit

The two most common alternative approaches are:

Arbitration – In binding arbitration, the parties agree to appoint an independent third party to resolve the dispute. As a rule, former judges or experienced lawyers with experience in resolving shareholder disputes are selected as arbitrators. 

Usually, not all parties have the right to appeal the arbitrator's decision. The effect can be seen as if it has been resolved in a judicial dispute. Therefore, you must stick to the decision to avoid further legal obstacles.

Mediation – This process refers to discussing the agreement before a former judge or qualified mediator. At this meeting, all parties discuss controversial issues until they reach some form of agreement that ends their case. 

This type of alternative dispute resolution is very similar to arbitration. The main difference, however, is that in mediation, the participants decide. The mediator only serves as a guide or advisor in the process. Once an agreement is reached, the parties must sign a contract containing the attached questions.

On the other hand, due to several laws that need to be addressed before starting such a procedure, it is very necessary to hire a lawyer for shareholder disputes. 

This serves to better understand the process and its consequences. A competent legal aid advisor will certainly enable all parties to reach a mutually beneficial and fair agreement.