Mandatory arbitration of intra-corporate disputes in Brazil: A beacon of light for shareholder litigation?

We survey companies and institutional investors to better understand their preferred method of intra-corporate dispute resolution in Brazil. Consistent with a number of theories, we find that these organizations prefer arbitration to judicial claims as the method of intra-corporate dispute resolution. Our findings suggest that their choice of arbitration is based on the parties’ preferred ranking of objectives: quality of the decision; time to resolution; and the possibility of selecting the arbitrator. We also find that litigation and arbitration are almost equally preferred methods for intra-corporate dispute resolution involving values above US $2.5 million.