What is Companies Tribunal ADR?

The Companies Tribunal is a statutory body established under the Companies Act to resolve civil disputes between companies without lengthy litigation. It uses Alternative Dispute Resolution (ADR) methods such as mediation and arbitration to provide quicker, less adversarial, and more cost-effective outcomes.

Cases often involve company law issues like shareholder disagreements, directorship disputes, or conflicts over governance and compliance. Mediation only becomes binding once recorded in a written settlement agreement, while arbitration awards and Tribunal orders carry full legal force and can be enforced through the courts.

The Companies Tribunal Process

  • Initiation – A company files an application with the Tribunal, outlining the dispute and the relief sought.
  • Response – The respondent submits their reply and any counterclaims.
  • ADR referral – The Tribunal usually directs matters to mediation or arbitration as the first step.
  • Mediation – A neutral mediator facilitates discussions. Settlement is voluntary and binding only once signed.
  • Arbitration – If mediation fails (or parties agree upfront), the dispute proceeds to arbitration. An arbitrator issues a binding award enforceable in court.
  • Tribunal hearing (if ADR fails) – If ADR is unsuccessful, the case is heard by a Tribunal member who issues a binding order.
  • Enforcement – Tribunal orders and arbitration awards are legally enforceable through the courts if a party does not comply.

Outcomes at the Companies Tribunal

  • Settlement agreement (mediation): If mediation succeeds, parties record their agreement in writing. Once signed, it becomes legally binding and enforceable.
  • Arbitration award: An arbitrator’s decision is final, binding, and enforceable through the courts, with only limited grounds for review (such as procedural unfairness).
  • Tribunal order: If ADR fails and the case proceeds to a Tribunal hearing, the decision issued is legally binding and enforceable.

Advantages of Companies Tribunal ADR

  • Cost-effective: Generally less expensive than litigation.
  • Time-efficient: Resolutions are usually faster than court proceedings.
  • Confidential: Proceedings are private, protecting sensitive business information.
  • Flexible: Procedures can be adapted to suit the dispute.
  • Specialised expertise: Tribunal members have knowledge of company law matters.
  • Preserves relationships: ADR methods focus on cooperation, reducing hostility between parties.

Limitations of Companies Tribunal ADR

  • Limited scope: Only applies to civil company law disputes; not available for criminal matters.
  • Mediation is voluntary: A settlement is only possible if both parties are willing to compromise.
  • Hearings may feel formal: If ADR fails, Tribunal hearings can resemble court proceedings.
  • Enforcement may require court: While decisions are binding, enforcement can involve additional court steps if a party does not comply.

VDM Attorneys – Your Partner in Companies Tribunal ADR

Engaging with the Companies Tribunal can be an effective way to resolve corporate disputes, but success depends on careful preparation, strategic representation, and enforceable outcomes. VDM Attorneys assist businesses at every stage of the process: from filing or responding to applications, through mediation or arbitration, to enforcing Tribunal orders and arbitration awards. Our goal is to secure outcomes that are efficient, binding, and aligned with your business interests.

Contact VDM Attorneys to discuss your matter and determine whether Companies Tribunal ADR is the right solution for your dispute.