Most companies experience corporate governance conflicts or disputes, although they are less common for well-governed companies. These conflicts and disputes frequently involve the company’s shareholders, board directors, and senior executives. It is essential for a company to implement effective dispute resolution processes, if the company is to succeed over the long term. Efficient dispute resolution is part of good risk management.
Dispute resolution techniques borrowed from negotiation and mediation can also help create the desired collegial environment — to encourage discussion, debate, and the free flow of ideas. This, in turn, improves the board’s all-around performance.
To help companies manage and resolve corporate governance disputes more effectively, and IFC has actively promoted the use of ADR (alternative dispute resolution) processes and techniques.
Toolkit: Resolving Corporate Governance Disputes
The toolkit breaks down the common types of governance disputes and provides techniques for effective resolution. It also offers practical suggestions and training resources for institutions that are helping companies implement good corporate governance practices or seeking ways to manage and prevent disputes. These institutions include institutes of directors, corporate governance centers, corporate law firms, corporate governance consulting firms, mediation and arbitration centers, universities, and research centers. Download the toolkit.
We are also finalizing a special skills-based training for directors on Managing Conflict and Difficult Conversations on the Board, jointly with the Center for Effective Dispute Resolution.