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.
|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||-|
|Administering institution||Permanent Court of Arbitration (PCA)|
|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||
|Language of Proceeding||English|
|Seat of Arbitration (by Country)||Netherlands|
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|
Bank for International Settlements Website - Information about the Hague Arbitral Tribunal: http://www.bis.org/about/arb_trib.htm