Legal Issues Concerning the Role of Arbitration in Resolving Corporate Governance Dispute in Nigeria

Abstract

This study conceptualized dispute as an integral part of man’s existence and a common occurrence in all human interactions; social, political, industrial, international, national, corporate, commercial, etc. In a corporate organization, disputes may result owing to strained relationships between the various stakeholders who are involved in the determination of the direction, and performance of the company. However, what is important is that the parties should be able to find a common ground and resolve such disputes amicably hence the need for an informal, quicker, less expensive, effective, and confidential mechanism as opposed to the formal, strict judicially entrenched way of resolving disputes. Based on this background, the focus of this research is the examination of arbitration as a necessary and successful tool in the resolution of corporate governance disputes and, consequently, helping to preserve the privacy of the parties in the dispute and the company, contributing to the improvement of corporate governance practices through the strengthening of investors' confidence, increasing shareholder value, enhancing the access to financing, promoting business continuity, and reducing the overall costs arising from corporate governance disputes. Concerning this, the study adopts a doctrinal method of study, the primary and secondary sources of the material relied on were analysed through a descriptive and analytical method. The study therefore observes that despite the numerous advantages and successes recorded in the use of arbitration to achieve an amicable resolution of corporate governance disputes, it is still faced with some limitations. The study therefore in its conclusion, recommended various strategies that can be employed to enhance the use of arbitration in resolving corporate governance disputes.

Keywords: Arbitration, Dispute, Corporate Governance, Nigeria