The Principles Of Resolving Internal Disputes in Vietnam
Nowadays, when investors jointly agree to contribute capital to run businesses, only few investors pay attention to relevant corporation regulations such as corporation foundation documents, documents of purchase and transfer of capital contribution, share, etc. As a consequence, when a conflict occurs, the investor does not keep initially good relationship anymore, they become confrontation together that cause adverse impact on the corporation. Therefore, the understanding of the principles of resolving internal disputes always has an important role in resolving the company’s internal disputes.
From our experience of resolving internal disputes, the principles of resolving internal disputes which are deeply understood including the following principles:
- The principles of resolving internal disputes based on in good faith
The principles of resolving internal disputes are in good faith and serve the company’s benefit. The principles of resolving internal disputes in good faith will drop off risk that parties in disputes will weaken the company itself, cause themselves damage of business, prestige and customer relation.
- The principles of resolving internal disputes toward conciliation
The principles of resolving internal disputes toward conciliation encourage the parties to mediate themselves or via mediator. The investor should only seek assistance from the jurisdictional authorities when the conciliation is not fruitful.
- The principles of resolving internal disputes without administrative authority
The principles of resolving internal disputes give parties a look at administrative procedures. Parties shouldn’t require the administrative authorities of State to resolve internal disputes because these usually take into account disputes from view of administration, therefore, they cannot resolve disputes between parties, eventually, they can lead a variety of disputes.
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- The principles of resolving internal disputes by commercial arbitrator
When disputes arise, the principles of resolving internal disputes need to be known that resolving disputes by commercial arbitrator in order to settle quickly, keep the company’s activities stable. However, the principles of resolving internal disputes still encourage the way in the court if parties do not get an arbitration agreement.
- The principles of resolving internal disputes quickly and promptly, ensuring minimized disruption in production and business processes
The principles of resolving internal disputes aim at limiting the impact of disputes on the operations, existence and sustainable development of the company. It is necessary to ensure that measures to resolve internal disputes are implemented quickly, promptly, completely and effectively to protect the parties’ legal rights and interests.
In practice, resolving internal disputes poses many difficulties. Indeed, beyond the principles of resolving internal disputes mentioned above, the parties must also pay attention to their reputation and image in the marketplace, as well as their business secrets.
If you have difficulties related to the principles of resolving internal disputes, please contact us: Phuoc & Partners is a professional consulting firm established in Vietnam and currently has nearly 100 members working in three offices in Ho Chi Minh City, Hanoi and Danang. Phuoc & Partners is also rated as one of the leading consulting firms specializing in business law in Vietnam that has leading practice areas in the legal market such as Labour and Employment, Taxation, Merger and acquisition, Litigation. We are confident in providing customers with optimal and effective civil litigation service.