Tuesday, October 9, 2012

Brazil: Stock Option Plans And Arbitration: Is It Possible Under Brazilian Law?

  • Article by Marcelo Inglez De Souza and Julio Cesar De Oliveira
Following the dynamism of the economic relations and the increasing practice of the stock markets, it became quite common throughout the corporative world the offering of options to employees to purchase shares of the employing company under pre-established price and conditions, the so-called stock option plans.

Another increasing trend in the corporative world, notably in Brazil, is the use of arbitration as a method for conflicts resolution instead of the judiciary system. The agility, flexibility and efficiency with which conflicts are resolved throughout arbitration proceedings are indeed very attractive elements.

In this context, a question commonly made is whether employing companies in Brazil can attach arbitration clauses to its stock option plans

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