Friday, August 1, 2014

The Next Big Thing? Mandatory Arbitration in Corporate Bylaws

The 1907 ΑΦΑ Constitution and Bylaws
While the masses complain about mandatory arbitration, Attorney Claudia Allen examines the legal and policy issues raised by arbitration bylaws, whether adopting such bylaws would be attractive to public companies, likely reaction from stockholders and opportunities for private ordering.

Since arbitration is a creature of contract, this article argues that there are opportunities for corporations to craft bylaws that take into account company-specific issues, while responding to many likely criticisms. However, the inherent bias of some stockholders and corporations against arbitration is likely to make experimentation in this area slow and difficult.

For more information - Bylaws Mandating Arbitration of Stockholder Disputes? by Claudia H Allen

The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigation matters, including the defense of enforcement actions and representation of investors, financial professionals and investment firms, nationwide. For more information call 212-509-6544 or send an email.
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