Mediation in Corporate Governance

1. Mediation in Corporate Governance Agnė Piškinatė Mykolas Romeris University Faculty of Social Policy Department of mediation

2. Contents • Introduction • Disputes in Corporate Governance • Advantages of in-house mediation • Skills required for in-house mediator • Styles of mediation • Result of in-house mediation • Opportunities of in-house mediation in Lithaunia • References

3. Introduction • A company is as integras to society today as the family unit is. Many of us spend the greater part of our lifes in companies that provide our lifehood. We establish friendships and relationships. • Better companies mean better societys. • Disputies arisises because of different oponions Mand different interests. • Mediation can be used as a tool for effective dispute resolution.

4. Introduction • The biggest companies of the world use mediation as the very important tool of governance and effective dispute resolution.

5. Disputes in Corporate Governance • Disputes that arises from routine corporate governance procedures. • Disputes that arises from extraordinary corporate events. • Disputes among corporate officers. • Disputes among shareholders and bondholders. • Disputes between shareholders and the corporation. • Disputes between the corporate and its corporate officers.

6. Advantages of in-house mediation • Safe commercial secrets of company. • Clear commercial reputation. • The procedure of mediation is confidential. • Both of parties are winners. • Mediation costs considerably lower than litigation. • Mediation procedure is faster than litigation.

7. Advantages of in-house mediation • Mediator can be selected according to their skills and fields of expertise. • Mediation can be an effective way to prevent disputes.

8. Skills required for in-house mediator • Competence and experience • Flawless reputation • Impartiality • Confidentiality

9. Mediating styles • Facilitative • Evaluative • Transformative • Harvard mediation

10. Result of in-house mediation • Successful mediation ends when parties of dispute achieves solution. • Solution of dispute satisfies both of parties. • Parties of dispute can sign an written agreement.

11. Opportunities of in-house mediation in Lithuania • There are a lot of big companies, that can try to use in-house mediation as a tool in their companies governance and effective dispute resolution. • Many of companies still does not trus mediation and prefers litigation. • Succesfull examples could encourage companies to use mediation as a tool in their own practice.

12. References • http://www.gcgf.org/wps/wcm/connect/Topics_Ext_Content/IFC_External_Corporate_Site/Global+Corporate+Governance+Forum • http://learn2mediate.com/resources/nafcm.php • http://www.conflictgateway.com/features/182-5-basic-mediation-skills-everyone-needs-to-know.html

13. References • http://ec.europa.eu/civiljustice/adr/adr_ec_code_conduct_lt.pdf • http://www.hnlr.org/2009/03/us-corporations-should-implement-in-house-mediation-programs-into-their-business-plans-to-resolve-disputes/ • http://www.inhousemediation.com/mediation