AN ANALYSIS OF THE PROCESS OF ALTERNATIVE DISPUTE RESOLUTION IN CORPORATE MANAGEMENT

This project conceptualized on Alternative Dispute Resolution (ADR) which is usually considered to be alternate to litigation. It has an informal, non-adversarial and confidential process whereby parties voluntarily determine the process to adopt in resolving their disputes. Traditionally, our local chiefs, church leaders and some stakeholders may act as either a mediator or an arbitrator to resolve disputes between disputants. This research point out several forms of ADR, which include negotiation, mediation, conciliation, arbitration and other hybrid process. This research work identify the rationale for adopting ADR as a means of settling corporate issues than a court trial, to identify the skills and strategies in ADR; these are the expertise a negotiator or mediator requires on the negotiation/mediation table to get the desired result, to make a functional recommendations which will minimize conflicts and enhance egalitarian corporations. However, it has been observed in corporate Management that Company restructuring and the rule in Foss v Harbottlehas often led to disagreement and subsequent gridlock. The rule provides that, where a wrong is done to the Corporate right of members, the wrong is strictly speaking, done to the company, that is, the majority of members to decide whether it should be treated as a wrong which should be redressed and the majority can validly decide not to redress such wrong. This majority rule and minority rights has often lead to deadlock in company relations, hence, this work looks for ways of resolving this dispute internally without going through court trial at the first instance. In Re Yenidje Tobacco Company Limited where the company was wind up under just and equitable rule, despite the fact that the company was making large profits notwithstanding. This position would have been different if these directors had altered their position to focus on the interest of the company rather than their aggressive adulatory dispositions which led to the winding up of the company .Conflicts in organisations are inevitable, consequently, directors, creditors, shareholders, employers and employees should rather seek for ways of resolving their disputes amicably at 'first instance through ADR processes, other than going to court for winding up of the affected company at each slightest provocation. Observation was made that Alternative Dispute Resolution could succeed only if claimants and defendants have motivation to make the process work, forcing both sides to participate in such a process can impede the success of the process. This research recommended that there should be legal basis for ADR which needs legal authorization for assessing the feasibility of an ADR program and the appropriate design for such program. xii n