Bank for International Settlements

The Bank for International Settlements (Bank) is an international organization created in 1930 to promote cooperation of national central banks and to provide additional facilities for international financial operations. The Bank was established as a company limited by shares. Some shares in the Bank were held by private shareholders. A dispute arose following the compulsory recall of the privately held shares by the Bank. The Claimants in this arbitration were former private shareholders who contested the lawfulness of the compulsory recall and the adequacy of the compensation provided. In a Partial Award issued on November 22, 2002, the Tribunal found that the compulsory recall was lawful and established the appropriate method of calculation for the compensation to be paid for each recalled share, which was based on the per-share net asset value of the Bank. In its Final Award issed on September 19, 2003, the Tribunal applied this method of calculation and determined the amount owed to the Claimants for the compulsory purchase of their shares. 


Case information

Name(s) of Claimant(s) Dr. Horst Reineccius (Claim No. 1) (Private entity )
First Eagle SoGen Funds, Inc. (Claim No. 2) (Private entity )
Mr. Pierre Mathieu and La Société de Concours Hippique de La Châtre (Claim No. 3) (Private entity )
Name(s) of Respondent(s) Bank for International Settlements (State entity )
Names of Parties -
Case number 2000-04
Administering institution Permanent Court of Arbitration (PCA)
Case status Concluded
Type of case Other proceedings
Subject matter or economic sector - Other -
Rules used in arbitral proceedings Ad Hoc Rules of Procedure
Treaty or contract under which proceedings were commenced

[Other]


Language of Proceeding English
Seat of Arbitration (by Country) Netherlands
Arbitrator(s)

Prof. W. Michael Reisman

Prof. Dr. Jochen A. Frowein

Prof. Dr. Mathias Krafft

Prof. Dr. Paul Lagarde

Prof. Dr. Albert Jan van den Berg

Representatives of the Claimant(s)

For Dr. Horst Reineccius: None.

For First Eagle SoGen Funds, Inc.: Mr. Donald Francis Donovan and Mr. Dietmar W. Prager of Debevoise & Plimpton.

For Mr. Pierre Mathieu et al.: Mr. Eli Kleiman and Mr. Guillaume Tattevin of Freshfields Bruckhaus Deringer. 

Representatives of the Respondent(s)

Mr. Jonathan I. Blackman, Mr. Laurent Cohen-Tanugi, and Ms. Claudia Annacker of Clearly Gottlieb Steen & Hamilton.  

Representatives of the Parties
Number of Arbitrators in case 5
Date of commencement of proceeding 07 March 2001
Date of issue of final award 19 September 2003
Length of Proceedings 2-3 years
Additional notes

Bank for International Settlements Website - Information about the Hague Arbitral Tribunal: http://www.bis.org/about/arb_trib.htm


Attachments

Notice of Arbitration
Reineccius Notice of Arbitration
First Eagle SoGen Funds, Inc. Notice of Arbitration
Mathieu Notification d'Arbitrage
Procedural Order
Procedural Order concerning Reginald Howe and the BIS
Procedural Order No. 1 (On Consent)
Procedural Order No. 2 (On Consent)
Procedural Order No. 3 (Terms of Submission)
Procedural Order No. 4 (On Consent)
Procedural Order No. 5 (Exchange of Documents among Claimants, Access to BIS Archive, Assertion of Privilege)
Procedural Order No. 6 (Order with Respect to the Discovery of Certain Documents for which Attorney-Client Privilege Has Been Claimed)
Procedural Order No. 7 (Order with Respect to the Request from Dr. Horst Reineccius, claimant no. 1, that the Tribunal Appoint an Expert)
Procedural Order No. 8 (Computer Assisted Projections, Requirements for Late Submissions of Evidence or Authorities)
Procedural Order No. 9 (Order on Consent with Respect to the Schedule for Proceedings, Applications for Documents and Appointment of An Expert in the Second Phase)
Procedural Order No. 10 (Production of Documents and Confirmation of Appraiser)
Procedural Order No. 11
Procedural Order No. 12 (re: Proposed New Exhibit 104)
Procedural Order No. 13 (On Consent)
Procedural Order No. 14 (On Consent)
Award or other decision
Order on Costs
Stipulation and Order of Confidentiality concerning First Eagle SoGen Funds, Inc and the BIS
Stipulation and Order of Confidentiality concerning Dr Reineccius and the BIS
Partial Award - November 22, 2002
Final Award - September 19, 2003
Other
Convention respecting the Bank for International Settlements
Hague Agreement of 20 January 1930, including Annexes 1 through 12
Chapter III of the Hague Convention of 1907 for the Pacific Settlement of International Disputes
Arbitration Documentation and Information - 2001
Rules for Arbitration between the Bank for International Settlements and Private Parties
Agenda for Preparatory Conference on Terms of Submission
Agenda for the meeting of May 28 and 29, 2003: Oral Hearings
Arbitration Documentation and Information – 2018

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