Legal entity is a legal entity formed to carry out business activities or social activities that have certain interests. These legal entities have a separate existence from their members or owners. However, it is not uncommon for disputes involving legal entities to occur, either with other parties or with members or owners themselves. The following is an explanation of Body corporate disputes.
Body corporate disputes can occur for several reasons, including:
Disputes between management or members of legal entities
Disputes between management or members of legal entities can occur due to differences of opinion in making decisions or carrying out tasks. Disputes of this kind are usually resolved through mechanisms contained in the articles of association or regulations of the legal entity.
Disputes with third parties
Legal entities may also engage in disputes with third parties such as employees, contractors or suppliers. Disputes of this kind can usually be resolved through mediation or through legal channels.
Legal violations committed by legal entities
Legal entities can also be involved in disputes due to violations of the law, such as violating intellectual property rights, violating human rights, or engaging in business practices that harm consumers. Disputes of this kind will usually be faced by legal entities in court or through legal channels.
Settlement of legal entity disputes can be done in several ways, including:
Mediation is a way of resolving disputes by way of discussion between the disputing parties and a neutral mediator. The goal of mediation is to reach an amicable agreement between the disputing parties.
Arbitration is a way of resolving disputes through legal channels. The dispute is decided by an independent and neutral arbitrator. The arbitrator’s decision is final and binding on both parties.
The trial is a way of resolving disputes that is carried out through legal channels by filing a lawsuit in court. Disputes are decided by independent and neutral judges. The judge’s decision is final and binding on both parties.
In dealing with legal entity disputes, it is very important for legal entities to have lawyers who are experts in business law and have experience in handling legal entity disputes. Lawyers can assist legal entities in understanding their rights and obligations, as well as provide advice on pen strategies