Geschillenregeling

Dispute Resolution

A provision in contracts or articles of association that sets out the procedure for resolving disputes between the parties, such as shareholders in a company.

The dispute resolution provision is a contractual or statutory clause that establishes mechanisms for resolving conflicts between the parties concerned, typically through exit or expulsion rights enabling the compulsory transfer of shares.

This arrangement is relevant in that it prevents the escalation of disputes and safeguards the continuity of the business, while affording the parties a clear and predictable means of exit without immediate recourse to the courts.

In practice, such provisions are commonly included in shareholders’ agreements or the articles of association of a private limited company (BV) and may invoke the statutory framework of the Dutch Civil Code, under which the Enterprise Chamber may be called upon to determine the value of the shares.

“The shareholders have included a dispute resolution provision in the articles of association to enable a compulsory transfer of shares in the event of serious disagreement.”

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Geschillenregeling - Betekenis | Arslan & Arslan Advocaten