Formación profesional

1.0 Introduction 2.0 Objectives 3.0 Main Content

3.1 Disputes Requiring Arbitration in a Registered Society 3.2 Arbitration Defined

3.3 Disputes that can be referred to Arbitration 3.4 Parties to agreement to Arbitrate

3.5 Persons Bound by the Agreement 3.6 Arbitration in Cooperative Society 4.0 Conclusion

5.0 Summary

6.0 Tutor-Marked Assignment 7.0 References/Further Readings 1.0 INTRODUCTION

Conflict is inherent in any human organisation and as such occurred in a registered society.

There have been some statutory provisions for dispute settlement where it touches the business of a registered society.

In this unit, you will learn to define the concept of alternative dispute resolution in respect of a cooperative society. You will also learn to know who an arbitrator is, his qualifications, powers and his activities as it concerns a registered society.

2.0 OBJECTIVES

At the end of this unit, you should be able to:

 Define the concept of alternative dispute resolution in respect of a registered society;

 Describe an arbitrator;

 List out the qualifications and powers of an arbitrator; and

 Discuss the activities of an arbitrator as it concerns a registered society.

3.0 MAIN CONTENT

3.1 Disputes Requiring Arbitration in a Registered Society

Section 49 (1) of the Cooperative Law of 1990 states that “if a dispute touching the business of a registered society arises;

(a) among present or past members and person claiming through present or past members and deceased members; or

(b) between a present, past or deceased member and the society, its committee or any office, agent or servant of the society;

(c) between the society and any other committee and any office, agent or servant of the society; or

(d) between the society and any other registered society;

the dispute shall be referred to the Director for settlement.

Section 49 (2) state that “a claim by a registered society for any debt or demand due to it from a member or nominee, heir or estate of a deceased member, shall be deemed to be a dispute touching the business of the society within the meaning of subsection (c) of section 49.

3.2 Arbitration Defined

An arbitration is the reference of a dispute or difference between not less than two parties for determination, after hearing both sides in a judicial manner, by a person or persons other than a court of competent jurisdiction. A person or persons to whom a reference to arbitration is made is called an Arbitrator or Arbitrators as the case may be. His or their decision is called an award.

One or more arbitrators may be constituted into an arbitral tribunal. The decision of such a tribunal is also called an award.

Self Assessment Exercise 1:

Define the term Arbitration.

3.3 Disputes that can be referred to Arbitration

It is not every dispute or differences that can be referred to arbitration. Disputes that can be referred must be justiciable issues which can be tried as a civil matter. They must be dispute that can be compromised by way of accord and satisfaction. These include all matters in dispute about any real or personal property, disputes as to whether a contract has been breached by either party thereto.

However, disputes arising out of illegal transaction cannot be referred; also an award arising from such a reference cannot be enforced and may be set aside. Disputes arising out of void transaction, such as wagering and gaining contracts, cannot be referred. An indictment for an act of a public nature cannot be referred. It is a settled policy of the law that an arbitrator should not be empowered to settle a criminal charge which is a matter of public concern.

3.4 Parties to Agreement to Arbitrate

The capacity to enter into an agreement to arbitrate is a coexistence with the capacity to contract.

Consequently, every person who is capable of entering into a contract may be a party to an

arbitration agreement. Conversely, a person who has no capacity to contract cannot enter into an arbitration agreement.

A corporation aggregate may be a party to an arbitration agreement in the same way as a natural person. But for other agreements to be valid, it must be in conformity with the rules which normally regulate transactions by the corporation.

3.5 Persons Bound by the Agreement

Parties to the agreement are of course bound by it. If the subject of the reference is assignable, the assignee of a party is bound. A third party, who is not a party to the arbitration agreement or an assignee of such a party cannot impose himself on the proceeding.

Self Assessment Exercise 2:

Identify the nature of disputes that can be referred to arbitration in a cooperative society.

3.6 Arbitration in Cooperative Society

Self Assessment Exercise 3:

The arbitration/award involving a cooperative society is final. Comment.

4.0 CONCLUSION

The question which is often asked is, why do parties, particularly in the business world, sometimes prefer arbitration to litigation in the ordinary courts of the land. The answer is that arbitration can be quicker than litigation. A court action involves conformity with laid down procedure, which cannot be circumvential by the parties and this takes time. The decision of an arbitral tribunal is final and binding on the parties. Consequently, an arbitral award is not subject to appeal.

5.0 SUMMARY

In this unit, we learnt about the definition of arbitration, arbitration laws in Nigeria as it applies to cooperative societies, the importance and advantage of arbitration in cooperative societies.

6.0 TUTOR-MARKED ASSIGNMENT

Arbitral award involving a cooperative society and its members is final and not subject to appeal.

Comment.

7.0 REFERENCES/FURTHER READINGS

Akaki, E.O. (Ed.) (1992). Essays on Company Law, University of Lagos Press (for Department of Commercial and Individual Law) Unilag.

Akintunde, Emiola (2005). Corporation Law. Emiola Publishers.

Cap 59 Law of the Federation, 1990.

Cooperative Society Decree 90 of 1993 (1990). Laws of the Federation.

Ezejiofor, Gaius (2005). The Law of Arbitration in Nigeria. Longman Publishers.

Orojo, J.O. (1992). Company Law and Practice in Nigeria. Third edition. Mmbeji V. Associate Nigeria Limited at page 2.

Sofowora, M.O. (1999). General Principle of Business and Cooperative Law. Soff Associates.

UNIT 4 APPLICABLE LAWS IN THE FEDERATION