Arbitration clause in agreements

Drafting
Drafting

For anyone looking to include arbitration clause in agreements for arbitration in Malaysia, you may want to consider adopting the following model arbitration clause under the AIAC Arbitration Rules 2021:

โ€œ๐˜ˆ๐˜ฏ๐˜บ ๐˜ฅ๐˜ช๐˜ด๐˜ฑ๐˜ถ๐˜ต๐˜ฆ, ๐˜ค๐˜ฐ๐˜ฏ๐˜ต๐˜ณ๐˜ฐ๐˜ท๐˜ฆ๐˜ณ๐˜ด๐˜บ, ๐˜ฅ๐˜ช๐˜ง๐˜ง๐˜ฆ๐˜ณ๐˜ฆ๐˜ฏ๐˜ค๐˜ฆ ๐˜ฐ๐˜ณ ๐˜ค๐˜ญ๐˜ข๐˜ช๐˜ฎ ๐˜ข๐˜ณ๐˜ช๐˜ด๐˜ช๐˜ฏ๐˜จ ๐˜ฐ๐˜ถ๐˜ต ๐˜ฐ๐˜ง ๐˜ฐ๐˜ณ ๐˜ณ๐˜ฆ๐˜ญ๐˜ข๐˜ต๐˜ช๐˜ฏ๐˜จ ๐˜ต๐˜ฐ ๐˜ต๐˜ฉ๐˜ช๐˜ด ๐˜ค๐˜ฐ๐˜ฏ๐˜ต๐˜ณ๐˜ข๐˜ค๐˜ต, ๐˜ช๐˜ฏ๐˜ค๐˜ญ๐˜ถ๐˜ฅ๐˜ช๐˜ฏ๐˜จ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ฑ๐˜ฆ๐˜ณ๐˜ง๐˜ฐ๐˜ณ๐˜ฎ๐˜ข๐˜ฏ๐˜ค๐˜ฆ, ๐˜ฃ๐˜ณ๐˜ฆ๐˜ข๐˜ค๐˜ฉ, ๐˜ต๐˜ฆ๐˜ณ๐˜ฎ๐˜ช๐˜ฏ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ฐ๐˜ณ ๐˜ช๐˜ฏ๐˜ท๐˜ข๐˜ญ๐˜ช๐˜ฅ๐˜ช๐˜ต๐˜บ ๐˜ต๐˜ฉ๐˜ฆ๐˜ณ๐˜ฆ๐˜ฐ๐˜ง, ๐˜ข๐˜ด ๐˜ธ๐˜ฆ๐˜ญ๐˜ญ ๐˜ข๐˜ด ๐˜ข๐˜ฏ๐˜บ ๐˜ฏ๐˜ฐ๐˜ฏ-๐˜ค๐˜ฐ๐˜ฏ๐˜ต๐˜ณ๐˜ข๐˜ค๐˜ต๐˜ถ๐˜ข๐˜ญ ๐˜ค๐˜ญ๐˜ข๐˜ช๐˜ฎ๐˜ด, ๐˜ด๐˜ฉ๐˜ข๐˜ญ๐˜ญ ๐˜ฃ๐˜ฆ ๐˜ง๐˜ช๐˜ฏ๐˜ข๐˜ญ๐˜ญ๐˜บ ๐˜ฅ๐˜ฆ๐˜ต๐˜ฆ๐˜ณ๐˜ฎ๐˜ช๐˜ฏ๐˜ฆ๐˜ฅ ๐˜ฃ๐˜บ ๐˜ข๐˜ณ๐˜ฃ๐˜ช๐˜ต๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ, ๐˜ข๐˜ฅ๐˜ฎ๐˜ช๐˜ฏ๐˜ช๐˜ด๐˜ต๐˜ฆ๐˜ณ๐˜ฆ๐˜ฅ ๐˜ฃ๐˜บ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ˆ๐˜๐˜ˆ๐˜Š, ๐˜ช๐˜ฏ ๐˜ข๐˜ค๐˜ค๐˜ฐ๐˜ณ๐˜ฅ๐˜ข๐˜ฏ๐˜ค๐˜ฆ ๐˜ธ๐˜ช๐˜ต๐˜ฉ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ˆ๐˜๐˜ˆ๐˜Š ๐˜ˆ๐˜ณ๐˜ฃ๐˜ช๐˜ต๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜™๐˜ถ๐˜ญ๐˜ฆ๐˜ด ๐˜ช๐˜ฏ ๐˜ง๐˜ฐ๐˜ณ๐˜ค๐˜ฆ ๐˜ข๐˜ต ๐˜ต๐˜ฉ๐˜ฆ ๐˜ต๐˜ช๐˜ฎ๐˜ฆ ๐˜ฐ๐˜ง ๐˜ต๐˜ฉ๐˜ฆ ๐˜ค๐˜ฐ๐˜ฎ๐˜ฎ๐˜ฆ๐˜ฏ๐˜ค๐˜ฆ๐˜ฎ๐˜ฆ๐˜ฏ๐˜ต ๐˜ฐ๐˜ง ๐˜ต๐˜ฉ๐˜ฆ ๐˜ข๐˜ณ๐˜ฃ๐˜ช๐˜ต๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ.โ€

The AIAC Arbitration Rules 2021 also recommend including the following clauses:

-๐˜›๐˜ฉ๐˜ฆ ๐˜ด๐˜ฆ๐˜ข๐˜ต ๐˜ฐ๐˜ง ๐˜ข๐˜ณ๐˜ฃ๐˜ช๐˜ต๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ด๐˜ฉ๐˜ข๐˜ญ๐˜ญ ๐˜ฃ๐˜ฆ [๐˜Š๐˜ช๐˜ต๐˜บ, ๐˜Š๐˜ฐ๐˜ถ๐˜ฏ๐˜ต๐˜ณ๐˜บ].
-๐˜›๐˜ฉ๐˜ฆ ๐˜ฏ๐˜ถ๐˜ฎ๐˜ฃ๐˜ฆ๐˜ณ ๐˜ฐ๐˜ง ๐˜ข๐˜ณ๐˜ฃ๐˜ช๐˜ต๐˜ณ๐˜ข๐˜ต๐˜ฐ๐˜ณ๐˜ด ๐˜ด๐˜ฉ๐˜ข๐˜ญ๐˜ญ [ ].
-๐˜›๐˜ฉ๐˜ฆ ๐˜ญ๐˜ข๐˜ฏ๐˜จ๐˜ถ๐˜ข๐˜จ๐˜ฆ ๐˜ต๐˜ฐ ๐˜ฃ๐˜ฆ ๐˜ถ๐˜ด๐˜ฆ๐˜ฅ ๐˜ช๐˜ฏ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ข๐˜ณ๐˜ฃ๐˜ช๐˜ต๐˜ณ๐˜ข๐˜ญ ๐˜ฑ๐˜ณ๐˜ฐ๐˜ค๐˜ฆ๐˜ฆ๐˜ฅ๐˜ช๐˜ฏ๐˜จ๐˜ด ๐˜ด๐˜ฉ๐˜ข๐˜ญ๐˜ญ ๐˜ฃ๐˜ฆ [ ].
-๐˜›๐˜ฉ๐˜ฆ ๐˜ญ๐˜ข๐˜ธ ๐˜จ๐˜ฐ๐˜ท๐˜ฆ๐˜ณ๐˜ฏ๐˜ช๐˜ฏ๐˜จ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ข๐˜ณ๐˜ฃ๐˜ช๐˜ต๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ค๐˜ญ๐˜ข๐˜ถ๐˜ด๐˜ฆ ๐˜ด๐˜ฉ๐˜ข๐˜ญ๐˜ญ ๐˜ฃ๐˜ฆ [ ].

Where the parties agree to expeditedย conduct of arbitral proceedings, theย AIAC Arbitration Rules 2021 provide thatย the parties may consider including the following additional clause:

โ€œ๐˜›๐˜ฉ๐˜ฆ ๐˜—๐˜ข๐˜ณ๐˜ต๐˜ช๐˜ฆ๐˜ด ๐˜ข๐˜จ๐˜ณ๐˜ฆ๐˜ฆ ๐˜ต๐˜ฐ ๐˜ฉ๐˜ข๐˜ท๐˜ฆ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ข๐˜ณ๐˜ฃ๐˜ช๐˜ต๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ค๐˜ฐ๐˜ฏ๐˜ฅ๐˜ถ๐˜ค๐˜ต๐˜ฆ๐˜ฅ ๐˜ช๐˜ฏ ๐˜ข๐˜ค๐˜ค๐˜ฐ๐˜ณ๐˜ฅ๐˜ข๐˜ฏ๐˜ค๐˜ฆ ๐˜ธ๐˜ช๐˜ต๐˜ฉ ๐˜ต๐˜ฉ๐˜ฆ ๐˜๐˜ข๐˜ด๐˜ต ๐˜›๐˜ณ๐˜ข๐˜ค๐˜ฌ ๐˜—๐˜ณ๐˜ฐ๐˜ค๐˜ฆ๐˜ฅ๐˜ถ๐˜ณ๐˜ฆ ๐˜ด๐˜ฆ๐˜ต ๐˜ฐ๐˜ถ๐˜ต ๐˜ช๐˜ฏ ๐˜™๐˜ถ๐˜ญ๐˜ฆ 8 ๐˜ฐ๐˜ง ๐˜ต๐˜ฉ๐˜ฆ ๐˜ˆ๐˜๐˜ˆ๐˜Š ๐˜ˆ๐˜ณ๐˜ฃ๐˜ช๐˜ต๐˜ณ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜™๐˜ถ๐˜ญ๐˜ฆ๐˜ด.โ€

#malaysiancorporatelawyer

This post was first posted on Linkedin on 6 August 2021.

Linkedin Post
Getting into the details to make a deal work

A big part of my role as a corporate lawyer has been listening to clients explain the commercial terms they want in their deals. The next step is asking the right questions that make those terms work in the real world. Sometimes the parties have a general idea of the …

Linkedin Post
Founder Exit: Legal Checklist to Avoid Delays

Before buyers commit, their lawyers will conduct legal due diligence that may uncover gaps or non-compliance which delay the founderโ€™s exit or reduce the price. This list helps founders/ sellers resolve common legal issues before theyโ€™re flagged in legal due diligence. Share Capital & Shareholdersย  Have all past share allotments …

Linkedin Post
Founders selling for the first time need more than high-level legal advice

Some founders selling their businesses for the first time are not sure where legal advice is needed or how deep that advice should go. In past deals where I acted for buyers, I have seen: โ€“ A founder who asked their lawyer for a โ€œhigh-level reviewโ€ of sale and purchase …