The function of an arbitration center is understood under commercial arbitration law

October 21, 2025

1. Understanding the Arbitration Center

Pursuant to the provisions of Article 27 regarding the legal status and structure of an arbitration center, as follows:

“1. An arbitration center has legal personality, its own seal, and a separate bank account.

2. An arbitration center operates on a non-profit basis.

3. An arbitration center may establish branches and representative offices both domestically and abroad.

4. An arbitration center has an Executive Board and a Secretariat. The structure and organization of the arbitration center are governed by its charter.

The Executive Board of the arbitration center consists of a Chairperson, one or more Vice-Chairpersons, and may include a Secretary-General appointed by the Chairperson of the arbitration center. The Chairperson of the arbitration center shall be an arbitrator.”

An arbitration center is a self – governing institution, established on the basis of private initiative but subject to strict state supervision through the Ministry of Justice to ensure quality, professionalism, and compliance with fundamental legal principles in dispute resolution activities. This official recognition is a prerequisite for the center’s awards to be recognized and enforced by the courts, thereby creating a solid legal bridge within the arbitration system.

2. Function of the Arbitration Center

Article 23 of this Law provides the functions of the arbitration center as follows:

“An arbitration center has the function of organizing and coordinating dispute resolution activities under arbitration rules and providing support to arbitrators in administrative matters, office services, and other assistance throughout the arbitral proceedings.”

Specifically, the functions of the arbitration center are divided into three main groups, all aimed at ensuring the professionalism and efficiency of the dispute resolution process:

Organization and Coordination: This is the highest-level role, ensuring that dispute resolution activities under the arbitration rules (i.e., the form of dispute resolution conducted at an arbitration center in accordance with the Commercial Arbitration Law 2010 and the procedural rules of that center) are properly managed and coordinated.
Administrative/Office Support: The center provides essential logistical services, including case file management, meeting room arrangement, and cost administration. This allows arbitrators to focus entirely on legal expertise without being distracted by administrative tasks.
Other Support: This includes any necessary assistance during the arbitral proceedings, reflecting the center’s flexibility in addressing the arising needs of the arbitral tribunal and the parties, thereby affirming its role as a reliable manager of the process.

3. Should an Arbitration Center Be Chosen to Resolve Commercial Disputes?

Currently, the use of arbitration centers for dispute resolution has become increasingly common among businesses and consumers. This underscores the position and role of arbitration centers, as this method offers advantages over court proceedings in terms of shorter timelines, lower costs, and avoidance of additional expenses arising from prolonged litigation, specifically:

In terms of arbitral procedure, it is convenient, swift, more flexible, simpler, and procedurally adaptable.
The arbitral award has the nature of finality and is effective from the date of issuance.
Arbitration is conducted non – publicly, which helps the parties maintain their reputation in the marketplace and ensures greater confidentiality compared to court proceedings.
Parties can select arbitrators with high expertise, practical experience, and in-depth understanding of the dispute, enabling disputes to be resolved quickly and accurately.
Arbitration resolves disputes based on the parties’ will, not on the exercise of the State’s judicial authority.

4. Conditions for Resolving Disputes through an Arbitration Center

Pursuant to the provisions of Article 5 of the Commercial Arbitration Law regarding the conditions for resolving disputes by arbitration:

“1. A dispute shall be resolved by arbitration if the parties have an arbitration agreement. The arbitration agreement may be concluded either before or after the dispute arises.
2. In the event that a party to the arbitration agreement is an individual who dies or loses legal capacity, the arbitration agreement remains effective for the heirs or legal representatives of that individual, unless the parties agree otherwise.
3. In the event that a party to the arbitration agreement is an organization that ceases operations, becomes bankrupt, is dissolved, merges, consolidates, splits, separates, or changes its organizational form, the arbitration agreement remains effective for the entity that succeeds to the rights and obligations of that organization, unless the parties agree otherwise.”

5. Mechanisms for Resolving Disputes through the Bigboss International Arbitration Center (BBIAC)

To resolve a dispute through commercial arbitration at BBIAC, clients may insert one of the following two clauses into their contracts:

5.1. Model Arbitration Clause

Additionally, the parties may supplement the clause with:

(a) The number of arbitrators shall be [one or three].

(b) The seat of arbitration shall be [city and/or country].

(c) The governing law of the contract shall be [ ].*

(d) The language of the arbitration shall be [ ].**

Notes:

* Applicable only to disputes involving a foreign element.

** Applicable only to disputes involving a foreign element or disputes where at least one party is an enterprise with foreign invested capital.

5.2. Model Arbitration Clause Applicable to Expedited Procedure

“Any dispute arising out of or in connection with this contract shall be settled by arbitration at the BIGBOSS International Commercial Arbitration Center (BBIAC) in accordance with the Arbitration Rules of Procedure of this Center. The Parties agree that the arbitration proceedings shall be conducted under the Expedited Procedure stipulated in Article 37 of the BBIAC Arbitration Rules of Procedure.”

Additionally, the parties may supplement the clause with:

(a) The seat of arbitration shall be [city and/or country].

(b) The governing law of the contract shall be [ ].*

(c) The language of the arbitration shall be [ ].**

Notes:

* Applicable only to disputes involving a foreign element.

** Applicable only to disputes involving a foreign element or disputes where at least one party is an enterprise with foreign invested capital.

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