Invoking the jurisdiction clause in the guarantee, P commenced proceedings against D in the Hong Kong Magistrates Court for $10 million, plus interest payable under the guarantee. D asked the Tribunal to stay the proceedings and refer the matter to arbitration in accordance with Section 20 (1) of the Arbitration Regulation (“AO”), as the dispute was the subject of THE SA arbitration clauses and the submissions. 8. Arbitration hearings are conducted in accordance with standard commercial arbitration procedures, which involve in-person hearings. The last arbitration hearing may not take place for more than three (3) consecutive business days (and must begin within six (6) months after the arbitrator`s appointment. The arbitrator may authorize additional days of hearings if deemed necessary. Up to two (2) extensions of the final arbitration hearing by party may be admitted by the arbitrator if the party seeking the extension has a legitimate reason. The defendant entered into a shareholders` pact with its shareholders (including the applicant) that governs the relationship between the shareholders and their relationship with the defendant as a community shareholder. However, it also regulated the conditions under which the applicant was to make his investment in the defendant, which is why the agreement was called an “investment agreement”.
One investor accuses the other of violating the company`s by-laws. However, the allegedly violated undertaking is found in the shareholders` pact and in the articles. Should the matter go to litigation or arbitration? Two investors create a joint venture and enter into a shareholder contract that regulates the relationship between them on terms similar to those of the company`s articles.” The shareholders` agreement contains an arbitration agreement and a clause providing that, in the event of contradictions between the terms of the shareholder contract and the company`s by-laws, the terms of the shareholder contract prevail.