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Resolve Internal Disputes In Enterprises

Dispute 01/08/2023

In the process of carrying out production, business and commercial activities, enterprises not only face competition and disputes from competitors and markets, but also face directly with disputes and conflicts arise from within the company itself. These disputes have no small impact and many cases seriously affect the existence and development of enterprises. In order to assist businesses in handling these issues, we would like to provide consulting services to resolve internal corporate disputes through the following article. For more detail, please contact Apolo Lawyers Law Firm via email contact@apolo.com.vn or hotline: (+84) 903.419.4790

Resolve Internal Disputes In Enterprises

In the process of carrying out production, business and commercial activities, enterprises not only face competition and disputes from competitors and markets, but also face directly with disputes and conflicts arise from within the company itself. These disputes have no small impact and many cases seriously affect the existence and development of enterprises. In order to assist businesses in handling these issues, we would like to provide consulting services to resolve internal corporate disputes through the following article. For more detail, please contact Apolo Lawyers Law Firm via email contact@apolo.com.vn or hotline: (+84) 903.419.4790

1. What is an internal business dispute?

Currently, the Vietnamese law does not have specific regulations on what is an internal enterprise dispute, but through the activity of listing disputes with nature and characteristics, it is an internal dispute of an enterprise. Specifically, in (Clause 4, Article 30 of the Civil Procedure Code 2015) internal enterprise disputes can be: Disputes between the company and its members; Disputes between the company and the manager in a limited liability company or a member of the Board of Directors, director or general director in a joint stock company, between members of the company related to the establishment, operation, dissolution, merger, consolidation, separation, transfer of assets of the company, transformation of the form of the company.

Resolve - internal - disputes - in - enterprisesResolve Internal Disputes In Enterprises

Internal disputes can arise due to a variety of reasons, including differences in opinions, conflicting interests, communication breakdowns, power struggles, personality clashes, or misunderstandings about roles and responsibilities. These disputes can range from minor disagreements to more significant issues that can impact the overall functioning and harmony of the organization or group.

2. Principles of resolving internal disputes within the company

Resolving internal disputes is crucial for maintaining a healthy and productive working environment. However, if left unaddressed, they can lead to decreased productivity, low morale, and even legal complications. Therefore, it is essential for organizations to take appropriate steps to identify and resolve internal disputes in a fair and constructive manner.

When there is an internal dispute in the enterprise, the parties can rely on the company charter and the resolution of the General Meeting of Shareholders to determine the principles of dispute resolution. In order to resolve this issue quickly and effectively, it is essential to follow the following dispute resolution principles:

2.1. Principle of self-determination:

This principle is reflected first of all in the right to self-negotiate the most beneficial and most suitable method of dispute resolution for the parties, such as self-negotiation and conciliation. In case the dispute settlement by this method does not bring the desired results, any party has the right to bring the dispute to the competent authorities for settlement.

2.2. The principle of equality before the law:

Regardless of economic status, status, capital, property, the disputing parties are respected by the law and protected their legitimate rights and interests.

2.3. The principle of conciliation:

The law encourages the parties to conciliate themselves, only when the conciliation cannot be reached, it is advisable to resort to the judicial authorities to resolve. When accepting cases, the jurisdictions also conduct conciliation measures and recognize conciliation before trial.

2.4. The principle of quick and timely dispute resolution, ensuring to limit the production and business process:

Business activities are inherently a closed cycle, so any malfunction or interruption at any stage always affects business activities. Dispute settlement that is not resolved quickly will seriously affect the existence and sustainable development of businesses.

3. How to resolve internal business disputes

3.1. Negotiation and reconciliation

For disputes within an enterprise, the law still gives priority to encouraging the parties to negotiate and reconcile with each other. These methods are not governed by the law, so the parties are not bound by regulations on procedures, methods of conduct, time, etc. At the same time, they negotiate and agree with each other to help disputes. not be further developed, do not affect the reputation of the parties.

When conciliation or negotiation fails, the parties often choose arbitration to resolve internal disputes. The arbitrator award is final and binding on all parties, so if the time limit expires, but one of the parties fails to perform, the other party has the right to file a petition with the civil judgment enforcement agency. enforcement of arbitral awards.

3.2. Sue

For lawsuits, the Court is the last option when all the above options are not effective. When choosing to settle a dispute at the Court, the parties must strictly comply with the regulations on the form, on the Court jurisdiction, procedures, and principles for dispute settlement as stipulated in the Civil Procedure Code 2015. However, the Court hears it in public, except in other cases as prescribed by law, so this is a rather disadvantageous point for the disputing parties when the business secrets are disclosed, and the reputation is likely to be reduced.

According to the provisions of Clause 1, Article 37 of the 2015 Civil Code, internal disputes within enterprises fall under the jurisdiction of the Provincial People Courts. Therefore, when a dispute occurs, the affected party can initiate a lawsuit at the Provincial People Court where the respondent resides if the respondent is an individual or where the respondent is located if the respondent is a legal entity.

resolve - internal - disputes - in - enterprisesResolve Internal Disputes In Enterprises

If you have difficulties related to the principles of resolving internal disputes, please contact Apolo Lawyers Law Firm via email: contact@apolo.com.vn or hotline - 0903.419.479.

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View moreSettlement Of Business And Commercial Disputes In Court

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