Global Corporate Governance Forum

1
Global Corporate Governance Forum Better
Companies, Better Societies Mediating
Corporate Governance Disputes? An International
Experts Workshop Marie-Laurence Guy Paris -
February 12, 2007
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Mediating Corporate Governance Disputes? An
International Experts Workshop

• Why are we interested in working on the use of
  alternative dispute resolution mechanisms in the
  field of corporate governance in other words
  why are we here today?

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Mediating Corporate Governance Disputes? An
International Experts Workshop

• Our Overall Mandate
• Promoting global, regional and local initiatives
  that improve corporate governance policy
  standards and practices in developing countries.

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Mediating Corporate Governance Disputes? An
International Experts Workshop

• Our Goals
• Increasing Investor Trust and Access to Capital
• Increasing Corporate Performance and Value

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Mediating Corporate Governance Disputes? An
International Experts Workshop

• How Do We Do This?
• How do we implement and enforce good corporate
  governance practices in developing countries
  where neither the quality of law nor its
  enforcement are often adequate?

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Mediating Corporate Governance Disputes? An
International Experts Workshop

• Unfortunately, there is no easy answer, and
  there is no one magic bullet solution.
• What we do is tackle the issues from various
  perspectives

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Mediating Corporate Governance Disputes? An
International Experts Workshop

Codes of Best Practice
Boards Director Professionalism
Regulations, Incentives, and Sanctions
Implementing and Enforcing Good Corporate
Governance Practices in Developing Countries
Media
Law and Enforcement
Shareholder Activism
Banks
Alternative Dispute Resolution Mechanism?
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Mediating Corporate Governance Disputes? An
International Experts Workshop

• Why Use Alternative Dispute Resolution (1)
• ADR has been widely and successfully used to
  solve labor disputes and family disputes.
• It is now increasingly used to solves commercial
  disputes. So why not corporate governance
  disputes?

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Mediating Corporate Governance Disputes? An
International Experts Workshop

• Why Alternative Dispute Resolution Mechanisms
  (2)
• To Prevent CG Disputes
• To Solve CG Disputes
• To Clarify CG Issues

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Mediating Corporate Governance Disputes? An
International Experts Workshop

• Why Alternative Dispute Resolution Mechanisms
  (3)
• To Build Trust and Investor Confidence
• To Save Money
• To Save Time
• To Promote Business Continuity
• To Improve Board Performance

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Mediating Corporate Governance Disputes? An
International Experts Workshop

• A Toolkit Approach to Reform and Best Practice
  Implementation
• Building on existing research and best practices
  from around the world, the Forum develops
  toolkits which provide policy makers, private
  sector decision makers, and nongovernmental
  organizations with a roadmap and implementation
  mechanisms to improve corporate governance.
• The toolkits distill international experience and
  offer step-by-step mechanisms for adapting these
  to local circumstances.

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Mediating Corporate Governance Disputes? An
International Experts Workshop

• The Toolkit Methodology
• Homework Research
• Network of Experts Brainstorming Workshop
• Review Publication of Working Paper
• Collecting Practical Examples and Case Studies
• Detailed Toolkit Structure
• Building on Existing Work Hiring Expertise
• Toolkit Drafting Editing
• Toolkit Peer Review
• Toolkit Publication Dissemination
• Capacity Building Advisory services

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Mediating Corporate Governance Disputes? An
International Experts Workshop

• Draft Toolkit Structure (1)
• User Guide
• Objectives
• Target Users
• Content
• Country and Thematic Indices

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Mediating Corporate Governance Disputes? An
International Experts Workshop

• Draft Toolkit Structure (2)
• Volume 1 Rationale
• Types of CG disputes
• Why use ADR mechanisms to solve disputes
• When to use ADR mechanisms to solve disputes
• What are the types of ADR mechanisms to be used

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Mediating Corporate Governance Disputes? An
International Experts Workshop

• Draft Toolkit Structure (3)
• Volume 2 Implementing CG Dispute Mechanism
• Awareness Raising for CG dispute mediation
• Setting the stage for CG dispute resolution
• Institution Building for CG dispute mediation
• Capacity Building to mediate CG disputes
• Mediating disputes within the boardroom

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Mediating Corporate Governance Disputes? An
International Experts Workshop

• And a Question
• Should we include arbitration as part of ADR
  mechanisms to consider for CG dispute resolution
  or focus on mediation and conciliation
  techniques?

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Thank You!

• Corporate Governance is concerned with holding
  the balance between economic and social goals and
  between individual and communal goalsThe aim is
  to align as nearly as possible the interests of
  individuals, corporations and society.
• Sir Adrian Cadbury, Foreword to World Bank
  Corporate Governance Overview, 1999

Marie-Laurence Guy 359 2
9697 224 Mguy_at_ifc.org www.gcgf.org