The Arbitrability of Corporate Disputes in Macau: Searching for Answers Under a New Law

Abstract

Within the Macanese legal community, despite the traditional underdevelopment of alternative dispute resolution mechanisms, there is now increasing interest in commercial arbitration. In this context, and given the economic conditions of Macau, the arbitration of intra-corporate disputes is an area especially apt to be developed. Nevertheless, questions remain regarding the extent to which these disputes should be considered arbitrable within the region. These difficulties are compounded by the way the new Macanese arbitration law addresses objective arbitrability. Indeed, the new arbitration law states that parties may arbitrate only subject matters regarding which they are entitled to conclude a settlement agreement. This criterion has often proven contentious when applied to intra-corporate disputes. This article argues that despite some ambiguity in the application of this standard, the vast majority of intra-corporate disputes should be deemed arbitrable under Macanese law. Despite this, some subsets of corporate disputes, most notably those regarding the validity of company resolutions, should comply with special requirements to make the arbitral proceedings regarding these disputes operable.

Keywords: commercial arbitration, arbitrability, intra-corporate disputes, Macanese commercial law, Macau’s arbitration law