Business Management and Articles of Incorporation: the "Economic Arbitration" Clauses Can Be an Effective Exit Strategy from Management Deadlocks in Close Companies?
Article from: TDM 2 (2017), in Non-Legal Adjudicators in National and International Disputes
The 2003 Italian Company Law reform permitted companies governed by Italian Laws to include management deadlock clauses in their articles of incorporation/bylaws. Such clauses provide the appointment of an "expert" empowered to decide on the management of the business. Thanks to these clauses, the so-called "economic" arbitration clauses (EACs), an external expert - even non-legal - can be instructed to decide how to best conduct the business in place of the company directors if the latter fail to reach agreement on some specific board resolutions. This essay will focus on the ...