Arbitration institution

An arbitration institution is a permanent body that administers arbitral proceedings under its own rules, providing a procedural framework, a list of qualified arbitrators and administrative support for case management. The main institutions relevant to Franco-Swiss transactions are the International Chamber of Commerce (ICC, Paris), the Swiss Arbitration Centre (SAC, Geneva/Zurich/Lugano), and the CMAP (Paris). Each institution has its own procedural specificities, cost structure and timeline expectations. For financial disputes in M&A, the choice of institution is a strategic decision that affects the profile of arbitrators available, the typical duration and the overall cost of proceedings.

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Example: a private equity fund and its co-investor disagree on the calculation of the IRR trigger for a carry distribution in a Swiss LBO structure. The shareholders' agreement designates the Swiss Arbitration Centre as the administering institution, with a single arbitrator having a finance background. The SAC's expedited procedure, completed in 9 months, delivers a binding ruling on the CHF 1.4 million dispute.

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Hectelion assists clients in selecting the most appropriate arbitration institution for their specific dispute profile and transaction structure.