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.

Lawyering
The Kindness That Stays, 20 Years On

I last saw them in 2007. They are two kind souls who made my years studying in the UK such a beautiful chapter in my life. I have been thinking about them lately and finally reached out after all these years. Whenever I look back on my time in the …

Linkedin Post
Why M&A Deals Fail

As an M&A lawyer, most of my time goes into the legal documents – drafting and negotiating agreements, representations, warranties, conditions precedent, etc. However, the deals I have seen delayed or aborted were not because of legal documents. A deal was aborted when geopolitical tension escalated while parties were going …

Linkedin Post
When a Seller is Paid in Shares, Instead of Cash

In an M&A transaction, a buyer which is also a company may offer to pay by issuing its own shares to the seller, instead of paying in cash. How is this different compared to a cash deal? The seller is not just selling. The seller is also “buying” into the …