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Articles  ·  Blog

The Pivotal Role of Alternative Dispute Resolution Mechanisms in Corporate Disputes

By FSAdmin 

The dynamic world of business is a complex web of relationships, transactions and potential conflicts. In other words, disputes are an inevitable reality in the modern-day business landscape. These conflicts may arise between different stakeholders within an organisation or between a company and external parties. These disputes can be complex and involve various legal and commercial issues arising from breach of contract, violation of shareholders agreements, deadlocks in decision-making, intellectual property conflicts, fraud, misrepresentation, corporate governance issues, and employment related conflicts such as wrongful termination, unpaid benefits, etc.

Traditionally, litigation has been the go-to method for resolving corporate disputes. However, due to its inherent drawbacks such as protracted timelines, exorbitant costs, and adversarial nature which often leave businesses worse off than before, businesses are increasingly turning to Alternative Dispute Resolution (ADR) mechanisms. ADR has become an essential component of modern corporate dispute resolution, offering businesses the opportunity to resolve conflicts more efficiently, cost-effectively, and amicably. This article explores the crucial role of ADR in navigating the complexities of corporate disputes by examining its core principles, advantages, and recommendations for its broader adoption.

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