QUESTION
Deadlock of shareholders who is responsible for arbitrator costs?
Asked on Jan 11th, 2017 on Business Law - Alaska
More details to this question:
Who is responsible for the costs and can an arbitrator force shareholders to do what is right for the corporation ? If evidence is there and 50% shareholders just won't agree to new terms the arbitrator would force it before dissolution of corp. right? Unlike a mediator who would just try to reach agreement?
1 ANSWER
Who pays the costs depends on what the parties' arbitration agreement provides. If silent, each side would generally bear its own costs and would share the arbitration fees equally. I can't predict what the arbitrator will decide, but he/she will render an award deciding the issues, as opposed to a mediator who, as you said, is only empowered to try to facilitate a settlement between the parties.
Answered on Jan 12th, 2017 at 9:25 AM