#06 June 2013

In focus – Alternative Dispute Settlement

Public demand for effective dispute settlement is great as never before. In an increasingly globalized world, national jurisdictions are starting to compete to be credible dispute resolution platforms. To a certain extent, this trend could be considered as a sort of “test for legal maturity”…

Expert Opinion

Alternative Dispute Resolution in International Commercial Law

Dr. Mostafa Noshadha

Today, one of the most important aspects in international commercial agreements is how to resolve dispute with regard to understanding the interoperation or acting agreement provision. Commercial disputes influence speed, privacy, information, investment and financial security. When creating such regulations and agreements, we must consider the effects of such regulations on the flow of business. To select the most effective method, we should be aware of: commercial dispute resolution mechanism, Advantages and disadvantages of an agreement according to circumstances and the subject...

In Re

Arbitration-Related Matters in Ukrainian National Courts: Current Practice & Trends

Pavlo I. Byelousov, Myroslava Y. Savchuk

Arbitration is perceived to be the fast and efficient method of disputes resolution. Since it is based on the consent of parties, this method also gives more autonomy and flexibility to the parties during the course of proceedings. Due to its advantages, arbitration has gained wide acceptance as the preferred method of dispute resolution, especially in international transactions where none of the parties wants to be subject to the other party’s national court system…

Perpetual Development of Permanent Justice: the New 2012 Arbitration Rules for the Permanent Court of International Arbitration

Iryna S. Glushchenko

The Permanent Court of International Arbitration (hereinafter — the PCA) is an international organization established following the first Hague Peace Conference and pursuant to the 1899 Hague Convention for the Pacific Settlement of International Disputes. The aim of the PCA was formulated as “facilitating an immediate recourse to arbitration for international differences”. Now administering an extensive number of commercial, investment, environmental and human rights disputes the PCA seems to fulfill its own goal of serving as a juncture between public and private international law…

How Much does Arbitration Cost?

Yaroslav A. Petrov, Oksana V. Varakina

It is an accepted fact that international arbitration costs are much higher than litigation costs, notwithstanding that international arbitration is much more suitable for resolution of disputes arising from international transactions. To avoid unreasonable expenses in the course of arbitration the parties should assess and consider potential costs of arbitration at the contract’s negotiation stage. For example, sometimes in sale contracts, where the price of the goods does not exceed USD 30,000-40,000, parties include arbitration clauses with a reference to the Rules of a rather expensive arbitration institute. In such case, there is a risk that costs of a potential arbitration will exceed the value of the contract itself. Consequently, it is advisable for low price contracts to choose an arbitration institution with moderate arbitration costs…

Arbitration Funding Triangle: When Your Claim Needs Finance

Ganna A. Fokina, Dmytro V. Galagan

Every company would be unhappy if the counterparty breached a contract or the host government expropriated an investment. However, not every company can afford the rising costs of international arbitration. This article offers guidance on what third party funding is, when to consider this type of financing, and some tips to take into account while choosing the finance provider and securing the funding…

Cover Story

Create the Right Moments

Mykhailo Spasov

Even in uncertain economic times the establishment of ambitious businesses is that challenge which often predicts more opportunities than at the stage of confidence and growth. The legal market is obviously no exception. Vox Legum is a young dynamic independent Ukrainian law firm, which focuses its practice on provision of quality solutions regarding banking law, bankruptcy, corporate law, pharmaceutical law, real estate and taxation issues, as well as on dispute resolution…

Hot Issue

Energy and Natural Resources — a Juicy Sector for Arbitration and ADR

Oleksandr A. Gudko

The past few years have seen a significant growth in international disputes that arise in the energy and natural resources sector. Companies engaged in power generation, mining and oil and gas businesses come across a diverse range of disputes — from a dispute over a delay in delivery by a local contractor to a multi-million dollar dispute under a production sharing contract involving a state…


Mediation as an Alternative Way of Settling Corporate Governance Disputes

Tatiana I. Zamorska, Artem V. Frolov

A number of large-scale corporate scandals that occurred during the last decade (Enron and Parmalat collapses at the beginning of the XXI century followed by default of Lehman Brothers just a couple of years later) have substantially swayed the level of trust in companies and corporations on the part of investors and once again highlighted the importance of having a strong and effective corporate governance system within a company. Any effective system of corporate governance shall, in its turn, provide for an effective mechanism to resolve existing and potential conflicts within the company…


St. Petersburg — the Legal Capital of Russia

The III St. Petersburg International Legal Forum, which was held in the Northern capital of Russia on 15-18 May, became the most anticipated professional fora of the year.

The number of delegates exceeded 2500, covering 52 countries, while the official delegations were led by top officials. The program was quite diverse and consisted of 56 sessions, covering general business law, especially designed professional discussions on high-profile practices, as well as socially important topics…


Sets and Goals

Corporate law queries used to be bread and butter for law counsels in Ukraine. In addition, this practice area is quite a favorable field for innovations designed by lawyers to meet the needs of clients.

No wonder, that the current discussion panel examines corporate developments and demands.

Oksana Kneychuk

Avoidance of an excessive tax burden has historically been one of the most important goals set by Ukrainian businesses in the course of corporate restructuring. Our recent experience shows that in many cases asset protection is becoming a decisive criterion. As a result, while choosing a reliable foreign jurisdiction Ukrainian clients evaluate many factors other than financial criteria. In some cases a choice is made in favor of a reputable holding jurisdiction (e.g. Luxembourg, Hong Kong) having no double tax avoidance treaty with Ukraine…

Yaroslav Romanchuk

Business is the property of principals, while the right to run a property is delegated to management. The subject of corporate management is control of execution of corporate activity. A breach of the system of cooperation between owners, shareholders and management of a company as well as other interested persons is the most widespread problem that later forces the owner to turn to external legal counsel…

Igor Reutov

The remedies available for minority shareholders in Ukraine are limited to a certain extent. Unfortunately, Ukrainian legislation does not provide regulation for derivative claims or special protection against unfair prejudice, which are at disposal of the minority in other jurisdictions. Nonetheless, the On Joint Stock Companies Act of Ukraine (the Act) offers some definite mechanisms aimed at protecting the interests of the minority…

Alexander Tretiakov

The procedures of establishing a foreign company’s representative office and subsidiary company differ greatly in Ukraine.

The subsidiary company is established according to the general provisions of any company founding and after several reforms in this field the procedure is relatively simple and transparent. The registration procedures (including the registration in the tax office) usually takes up to two weeks, but this term may be shortened further in case the founders have prepared all the necessary documents in advance…

Roman Drozhanskyi

Current Ukrainian legislation does not stipulate a separate company form called “joint venture”, so this is rather an economic concept, meaning a company which has a foreign share in its capital. Therefore, there are no specific legal provisions benefiting or limiting the rights of such companies…

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