Statutes of the Court of Arbitration

STATUTES OF THE COURT OF ARBITRATION OF THE CONFEDERATION OF EMPLOYERS AND INDUSTRIALISTS IN BULGARIA

Status

Art. 1.

(1) The Confederation of Employers and Industrialists in Bulgaria (KRIB) shall establish an arbitration court. The name of the arbitration court shall be „Арбитражен съд при КРИБ“. The name of the „Арбитражния съд при КРИБ“ (hereinafter referred to as the KRIB Court of Arbitration ) in English shall the “Arbitration Court at the Confederation of Employers and Industrialists in Bulgaria (KRIB Court of Arbitration)”.

(2) The KRIB Court of Arbitration shall be a judicial institution in complete independence from the KRIB.

(3) The seat of the KRIB Court of Arbitration shall be in Sofia.

Competence

Art. 2.

(1) The KRIB Court of Arbitration shall resolve property disputes, disputes regarding the interpretation or gap filling in contracts, and disputes regarding the adaptation of contracts to newly arising circumstances, if the resolution of these disputes is referred to the KRIB Court of Arbitration pursuant to an arbitration agreement.

(2) The disputes shall be resolved in accordance with the Rules of Arbitration of the KRIB Court of Arbitration and the applicable law.

Structure

Art. 3.

The structure of the KRIB Court of Arbitration shall include an Arbitration Council, Supervisory Board, Arbitration Panel, and Secretariat.

Arbitration Council

Art. 4.

(1) The Arbitration Council shall comprise of seven to nine natural persons. The members of the Council of the KRIB Court of Arbitration shall be elected by the Board of Directors of the KRIB for a period of five years and may be re-elected.

(2) The Arbitration Council elects amongst its members a Chairperson and three Vice Chairpersons of the KRIB Court of Arbitration. The term of office of the Chairperson and the Vice- Chairpersons of the KRIB Court of Arbitration shall be five years. The Chairperson may be re-elected for only one further term of office.

(3) The Arbitration Council:

  1. a) shall in the events provided for in the Rules of Arbitration of the KRIB Court of Arbitration determine the number of arbitrators in cases initiated before the KRIB Court of Arbitration;
  2. b) shall review requests for challenge and shall take decisions concerning the termination of the powers of the arbitrators in cases initiated before the KRIB Court of Arbitration;
  3. c) shall include and exclude persons in and from the List of Arbitrators of the KRIB Court of Arbitration;
  4. d) shall adopt internal regulations and instructions with regard to various matters of the activity of the KRIB Court of Arbitration;
  5. e) shall determine which matters are to be discussed by the Arbitration Panel, in order to synchronise and develop the practice of the KRIB Court of Arbitration;
  6. f) shall adopt the schedule of the meetings of the Commissions of the Arbitration Panel under Art. 8, and shall determine the composition of the Commission for each of these meetings;
  7. g) shall take decisions to determine the amount of the arbitration fees and arbitrators’ remunerations in compliance with the current tariffs;
  8. h) shall prepare, and after discussion by the Arbitration Panel, shall adopt methodological guidelines for various aspects of the arbitration proceedings;
  9. i) shall take decisions regarding the initial examination of the jurisdiction of the KRIB Court of Arbitration to resolve a given dispute;
  10. j) shall take decisions to dismiss Statements of Claim in the events provided for in the Rules of Arbitration;
  11. k) shall take decisions regarding the suspension and termination of the arbitration proceedings before the KRIB Court of Arbitration in the events provided for in the Rules of Arbitration;
  12. l) shall take decisions regarding the consolidation of arbitration proceedings before the KRIB Court of Arbitration;
  13. m) shall take decisions regarding the acceptance of the place of arbitration agreed by the parties, when that place is outside of the Republic of Bulgaria;
  14. n) jointly with the Supervisory Board and after discussion with the Arbitration Panel shall prepare proposals for amendments and supplements to the Statutes of the KRIB Court of Arbitration, the Rules of Arbitration of the KRIB Court of Arbitration, the tariffs for arbitration fees and the remunerations of arbitrators;
  15. o) shall popularise the activities of the KRIB Court of Arbitration;
  16. p) shall take decisions on matters, in which a unanimous decision has not been reached by two successive Commissions of the Arbitration Panel;
  17. q) shall take decisions with regard to proposals of the Board of the Directors of the KRIB to terminate the term of office of the Arbitration Council of these Statutes or the Rules of Ethics of the KRIB Court of Arbitration.
  18. r) shall perform other functions provided for in the Rules of Arbitration of KRIB Court of Arbitration.

(4) The Arbitration Council shall conduct regular meetings once every month. The Chairperson of the KRIB Court of Arbitration may also convene extraordinary meetings. Meetings may also be conducted by the use of telecommunication means. The Arbitration Council may hold a meeting, if at least five of its members are present. When calculating the decision-making quorum regarding a given matter the members of the KRIB Court of Arbitration who are not entitled to participate in decision-making on the same matter shall not be included, as provided for in Art. 12 below. The decisions shall be taken with a majority of more than half of the members present, and the decisions under Para.2, Letter “q” shall be taken with a majority of two thirds of all members of the Arbitration Council.

(5) Minutes shall be drafted for each meeting and the decisions taken at this meeting by the Arbitration Council, which minutes shall be signed by the Chairperson and one other member of the Arbitration Council. If necessary the dispositive of the decisions taken shall be communicated to the persons concerned, without indicating the motives for the decisions.

(6) When performing his/her functions, each member of the Arbitration Council shall be independent and shall act in accordance with his/her inner conviction.

(7) The members of the Arbitration Council shall be entitled to selection and appointment as arbitrators, and to act as authorised representatives of the parties in cases before the KRIB Court of Arbitration and other arbitral institutions, as well as to carry out other professional activities of their choice.

(8) The members of the Arbitration Council shall not receive any remuneration for their activities.

(9) The powers of the Chairperson, the Vice Chairpersons and the members of the Arbitration Council shall be terminated by the Board of Directors of KRIB prior to the expiry of their mandate:

  1. a) Upon their request;
  2. b) In the event of their inability to perform their obligations for more than six consecutive months;
  3. c) In the event of a violation of these Statutes or the Rules of Ethics of the KRIB Court of Arbitration – upon a proposal of the Arbitration Council in accordance with para.3, letter “q”; and
  4. d) In the event of death.

(10) In the event of the termination of the powers of a member of the Arbitration Council, the Board of Directors of KRIB shall elect in his/her place a new member upon a proposal of the Chairperson of the KRIB Court of Arbitration.

Chairperson of the KRIB Court of Arbitration

Art. 5.

(1) The KRIB Court of Arbitration shall be represented by its Chairperson.

(2) The Chairperson of the KRIB Court of Arbitration shall have the following functions:

  1. a) shall represent the KRIB Court of Arbitration;
  2. b) shall convene and manage the meetings of the Arbitration Council and the Arbitration Panel;
  3. c) shall manage the Secretariat of the KRIB Court of Arbitration;
  4. d) shall execute the decisions of the Arbitration Council;
  5. e) shall propose to the Board of Directors of KRIB persons who may be elected as members of the Arbitration Council;
  6. f) after consultation with the Supervisory Board shall make proposals to the Board of Directors of KRIB with regard to the appointment and the dismissal of the employees of the Secretariat of the KRIB Court of Arbitration;
  7. g) shall report the activities of the KRIB Court of Arbitration before the Board of Directors of KRIB.
  8. h) shall present to the Board of Directors of KRIB proposals prepared by the Arbitration Council jointly with the Supervisory Board for amendments and supplements to the Statutes of the KRIB Court of Arbitration, the Rules of Arbitration of the KRIB Court of Arbitration, the tariffs for arbitration fees and the remunerations of arbitrators; and
  9. i) shall perform other functions provided for in the Rules of Arbitration of KRIB Court of Arbitration.

Vice Chairpersons of the KRIB Court of Arbitration

Art.6

The Vice Chairpersons shall perform the functions of the Chairperson when the latter is prevented from doing so or has delegated these functions to one of them.

Supervisory Board

Art. 7.

(1) The Supervisory Board of the KRIB Court of Arbitration shall comprise of three to five natural persons and shall include a Chairperson of the Supervisory Board and regular members. The members of the Supervisory Board of the KRIB Court of Arbitration shall be elected by the Board of Directors of KRIB for a period of five years. The Supervisory Board shall elect one of its members as a Chairperson.

(2) The Supervisory Board:

  1. a) shall approve the staff structure of the Secretariat of the KRIB Court of Arbitration;
  2. b) shall prepare and propose to the Board of Directors of KRIB the budget of the KRIB Court of Arbitration;
  3. c) jointly with the Arbitration Council shall prepare proposals for amendments and supplements to the Statutes of the KRIB Court of Arbitration, the Rules of Arbitration of the KRIB Court of Arbitration, the tariffs for arbitration fees and the remuneration of arbitrators;
  4. d) shall take decisions regarding to matters connected with the material facilities of the KRIB Court of Arbitration;
  5. e) shall adopt internal regulations for its activities; and
  6. f) shall popularise the activities of the KRIB Court of Arbitration.

(3) The members of the Supervisory Board shall not have access to information concerning cases initiated before the KRIB Court of Arbitration.

(4) The Supervisory Board shall conduct regular meetings once every three months. The Chairperson of the Supervisory Board may also convene extraordinary meetings. Meetings may also be conducted by the use of telecommunication means. The Supervisory Board may hold a meeting if more than half its members are present. When determining the decision-making quorum with regard to a given matter, members of the Supervisory Board who are not entitled to participate in decision-making on the same matter shall not be included, as provided for in Art.12 below. The decisions shall be taken with a majority of more than half the members present.

(5) Minutes shall be drafted for each meeting and the decisions taken at this meeting by the Supervisory Board, which minutes shall be signed by the Chairperson of the Supervisory Board and one other member of the Supervisory Board.

(6) When performing his/her functions, each member of the Supervisory Board shall be independent and shall act in accordance with his/her inner conviction.

(7) The members of the Supervisory Board shall not receive any remuneration for their activities.

(8) The powers of the members of the Supervisory Board shall be terminated by the Board of Directors of KRIB prior to the expiry of their term of office:

  1. a) Upon their request;
  2. b) In the event of their inability to perform their obligations for more than six consecutive months;
  3. c) In the event of a violation of these Statutes or the Rules of Ethics of the KRIB Court of Arbitration; and
  4. d) In the event of death.

(9) In the event of the termination of the powers of a member of the Supervisory Board, the Board of Directors of KRIB shall elect in his/her place a new member.

Arbitrators

Art. 8.

(1) The KRIB Court of Arbitration shall consider and resolve disputes referred to it via an Arbitration Tribunal which may comprise of a sole arbitrator or three arbitrators.

(2) Members of the Arbitral Tribunal may be persons included in the List of Arbitrators of the KRIB Court of Arbitration, as well as other persons indicated by the parties and approved by a Commission of the Arbitration Panel.

(3) Each arbitrator must have high professional and moral qualities. Arbitrators may only be legally capable persons over the age of 18 years, with no criminal record for intentional criminal offences, with a degree in law and at least ten years of legal experience. The following persons may not be arbitrators: Members of the Parliament, Ministers, Deputy Ministers, heads of agencies, members of the Constitutional Court, judges, prosecutors and investigators, as well as persons who are prohibited by a legislative act to act as arbitrators.

(4) The List of Arbitrators shall be adopted with a decision of the Arbitration Council for a period of two years. The members of the KRIB Court of Arbitration shall automatically be included in the List of Arbitrators. The Arbitration Council may upon its own discretion and at any time register and remove other persons from the List of Arbitrators. The inclusion of a person in the List of Arbitrators shall not impose any restrictions to him/her in carrying out other activities of his/her choice.

(5) Each arbitrator must be impartial and independent when performing his/her functions as a member of Arbitral Tribunal. The arbitrator shall not be a representative of any of the parties to the case and shall be obliged to preserve the confidentiality of the consultative hearings of the Arbitral Tribunal, as well as to preserve the confidentiality of the information which he/she may have learned upon or in connection with the performance of his/her functions as an arbitrator in cases initiated before the KRIB Court of Arbitration.

(6) When a person is nominated as an arbitrator, he/she must confirm that he/she is impartial and independent of the parties involved in the arbitration with a written declaration to the Secretariat and to indicate therein all the circumstances which may cause reasonable doubts about his/her impartiality or independence, in compliance with the IBA Guidelines on Conflicts of Interest in International Arbitration (2004). This declaration shall be sent to the parties. In the event after his/her appointment the arbitrator ceases to be impartial or independent from the parties to the case, or circumstances occur which may give rise to doubts that he/she is impartial or independent the arbitrator shall be obliged immediately to inform the Secretariat of this.

(7) In their activities, the arbitrators shall comply with the Rules of Ethics of the KRIB Court of Arbitration.

Arbitration Panel

Art. 9.

(1) All arbitrators included in the List of Arbitrators of the KRIB Court of Arbitration shall be members of the Arbitration Panel.

(2) The Arbitration Panel:

  1. shall take decisions under Art.10 via its Commissions;
  2. shall discuss drafts of methodological guidelines for various aspects of the arbitration proceedings, proposals for amendments and supplements to the Statutes of the KRIB Court of Arbitration, the Rules of Arbitration of the KRIB Court of Arbitration, the tariffs for arbitration fees and the remuneration of arbitrators;
  3. shall discuss the practice of the KRIB Court of Arbitration with regard to applying legislation and the Rules of Arbitration, and may take decisions with regard to its synchronisation and development. The Arbitration Panel shall take decisions on the basis of a majority of a half plus one of all its members. The decisions taken by the Arbitration Panel shall be published on the website of the KRIB Court of Arbitration, and shall be mandatory for all arbitrators which resolve cases initiated before the KRIB Court of Arbitration.

Commissions of the Arbitration Panel

Art. 10.

(1) The Commissions of the Arbitration Panel shall comprise of three members of the Arbitration Panel and shall have non-permanent composition. The composition of the Commissions of the Arbitration Panel shall be determined by the Arbitration Council by a calendar schedule on a rotational basis. One of the members of each Commission must be appointed among the members of the Arbitration Council.

(2) Each Commission of the Arbitration Panel may hold a meeting only if all its members are present. The meeting shall be chaired by the member of the Arbitration Council included in its composition. If any of the members of a given Commission of the Arbitration Panel are not entitled to participate in the decision-making on a given matter, as provided for in Art. 12 below, the decision on this matter shall be taken by a following Commission of Arbitration Panel in which this member does not participate.

(3) The decisions of each Commission of the Arbitration Panel shall be taken unanimously. If a unanimous decision cannot be reached, the matter shall be referred for resolution by the next scheduled Commission of the Arbitration Panel. If the next Commission of the Arbitration Panel does not take a decision with regard to the same matter unanimously, this matter shall be referred for resolution by the Arbitration Council. Minutes shall be drafted for the meeting of each Commission of the Arbitration Panel and for the decisions taken, which minutes shall be signed by all members of the Commission.

(4) The Commissions of the Arbitration Panel:

  1. a) shall confirm the arbitrators indicated by the parties and shall appoint arbitrators to cases constituted before the KRIB Court of Arbitration in those cases provided for in the Rules of Arbitration; and
  2. b) as provided for in the Rules of Arbitration of the KRIB Court of Arbitration they shall scrutiny the arbitration awards of the Arbitration Tribunals with regard to cases initiated before the KRIB Court of Arbitration, for compliance of the arbitral awards with the formal requirements of the law applicable for arbitration proceedings and the Rules of Arbitration, and they can give instructions to the Arbitral Tribunals for the implementation of these requirements.

(5) When fulfilling his/her functions, each member of the Arbitration Panel shall be independent and shall act in accordance with his/her inner conviction.

(6) The members of the Commissions of the Arbitration Panel shall not receive any remuneration for their activities.

Secretariat

Art. 11.

(1) The Secretariat of the KRIB Court of Arbitration shall consist of secretaries and other officials. The members of the Secretariat shall be appointed under an employment contract with KRIB upon proposal of the Chairperson of the KRIB Court of Arbitration.

(2) The secretaries of the Arbitration Court shall organise and maintain the Registry of the KRIB Court of Arbitration, lead the correspondence of the KRIB Court of Arbitration and shall carry out activities related to arbitration cases, which are referred to them by the Rules of Arbitration of the KRIB Court of Arbitration Court. The secretaries shall also assist in the activities of the bodies of the KRIB Court of Arbitration, as provided for in the Statutes, the Rules and internal regulations of the KRIB Court of Arbitration.

Rules of Ethics and Prevention of Conflict of Interests

Art.12

(1) None of the members of the Arbitration Council and the Arbitration Panel may participate in discussion of matters and in award-making related to arbitration cases before the KRIB Court of Arbitration, in which cases the same person participates in any capacity, or in other events of conflicts of interests. In the event of the occurrence of a conflict of interests, each of these persons shall be obliged immediately to notify the Chairperson of the KRIB Court of Arbitration, and may not access any information related to the arbitration cases, in connection with which the conflict of interests has arisen, nor participate in meetings of the Arbitration Council or a Commission of the Arbitration Panel, when matters related to these cases are being considered, as well as matters related to which the same persons have a conflict of interests.

(2) When assessing a possible conflict of interests, the members of all the organs and structures of the KRIB Court of Arbitration shall apply and comply with the IBA Guidelines on Conflicts of Interest in International Arbitration (2004).

(3) In his/her activities, each member of a body and employee in a structure of the KRIB Court of Arbitration shall strictly comply with these Statutes and the Rules of Ethics of the KRIB Court of Arbitration. The violation of these Statutes and the Rules of Ethics shall be ground for early termination of the term of office, and correspondingly for dismissal from office.

Confidentiality

Art. 13.

The members of the Arbitration Council and the Commissions of the Arbitration Panel and employees of the Secretariat shall preserve confidentiality regarding the information they might have access to in connection with the performance of their duties.

Financial matters

Art. 14.

(1) All sums payable in relation to arbitration cases, initiated before the KRIB Court of Arbitration shall be paid into the bank accounts of KRIB.

(2) The expenses for the maintenance of the KRIB Court of Arbitration shall be paid by KRIB.

(3) Arbitrators shall receive remunerations as defined in the Tariff of Remunerations of Arbitrators for participation in cases and their resolution.

Statutes, Rules of Arbitration and Tariffs

Art. 15.

The Statutes of the KRIB Court of Arbitration, the Rules of Arbitration of the KRIB Court of Arbitration, the tariffs for arbitration fees and for remunerations of arbitrators shall be approved and amended by the Board of Directors of KRIB and shall be published on the website of the KRIB Court of Arbitration.

These Statutes of the KRIB Court of Arbitration KRIB were adopted by the Board of Directors at its session held on March 19, 2014 and came into force on March 19, 2014.