Corporate Mediation – Disputes between Shareholders, Directors, Managers and Entrepreneurs
Focused Business Mediation and commercial mediation in general are highly suitable to resolving conflicts inside companies.
Commercial mediation is appropriate for resolving disputes between shareholders, disagreements between directors in a company, and in fact to resolving any intra-organisational difficulties between the various organs of a company.
In corporations, there is a disparity between the interests of the various parties. These conflicts of interests, by their nature, could lead to misunderstandings or conflict. Thus, for instance, the divergence between the interests of the controlling shareholders and those of the minority shareholders. The agency problem, which is reflected in the divergence of interests between shareholders and management. Power struggles inside the organisation. All phenomena which are extensively found in both case law and legal literature.
Additionally, given the intensity of relations between the various organs of a company, there is potential for friction amongst the various parties inside the corporation.
However, the parties here have a clear interest in resolving the conflict swiftly, efficiently, and with the least emotional intensity, including by means of business mediation.
For this reason, the principles of Focused Business Mediation, are especially suited to resolving conflicts between shareholders within the confines of commercial mediation.
In addition, the principles of Focused Business Mediation, are highly suited to resolving conflicts between the various organs of a company. Thus, for instance, business mediation in conflicts inside the board of directors and commercial mediation between the board and management.
Focusing on the core of the dispute, striving to resolve the commercial disagreement swiftly and efficiently, understanding the importance of, when necessary, inviting relevant experts to participate in the commercial mediation process, such as an accountant, make Focused Business Mediation especially suited to resolving conflicts by way of commercial mediation inside the corporation.