Who Has The Power To Bind A Public Joint Stock Company To Arbitration?

Analysis

UAE law requires certain formalities for an arbitration agreement to be valid.

One of these formalities is a specific authorization granted by the parties to their representatives who are signing the arbitration agreement on their behalf. Such authorization must explicitly vest the representatives with the power to agree to arbitrate. 

When one of the parties to the arbitration agreement is a company, the legal form of the company determines the formalities required to allow the company's representative to bind the company to an arbitration clause. 

In the following judgment, Abu Dhabi Court of Cassation commercial appeal no. 351 of 2014 issued on 26 June 2014, Al Tamimi and Company was successful in obtaining a decision from the Abu Dhabi Court of Cassation in which the court confirmed the formalities required to bind a public joint stock company to an arbitration agreement.   

Summary of the facts