NASSAU, BAHAMAS — Prime Minister Philip Davis said yesterday that his administration is “turning talk into action” by advancing legislation to establish this jurisdiction as an international arbitration hub, noting that this will help attract more foreign investment to the country.
While making his contribution to the debate yesterday on the International Commercial Arbitration Bill (2023) and Arbitration Amendment Bill (2023) Davis noted that by advancing the legislation this nation is signaling to the world that it is committed to improving its arbitration framework so that people and companies operating in The Bahamas can feel a sense of security when they do business.
“They will know that there are convenient and accessible mechanisms in place through which they can resolve conflicts without having to go through lengthy and costly proceedings,” said Davis, noting that welcoming an international arbitration center is a critical step toward tapping into our full potential as a jurisdiction.
According to Davis, the Arbitration (Amendment) Bill (2023) amends the existing act to include the resolution of trust disputes and further clarifies and defines relevant provisions within the law to promote the efficient and cost-effective resolution of trust disputes.
“For instance, in cases where there is intent to enter into an agreement that was intended to be part of another arbitration agreement that did not pan out, the initially dependent agreement will now be treated as a valid and distinct agreement,” Davis noted.
He added: “This amendment also now specifically holds parties liable who knowingly and unlawfully disclose confidential information contrary to established agreements as bad faith actors within an arbitration process. We are creating a more secure and confidential environment in which individuals and companies can be assured that any disputes will be resolved in a comprehensive and fair way. Taken together, these amendments further enhance our nation’s reputation as a reliable and trustworthy jurisdiction. With the modernization and strengthening of our existing arbitration framework, we are now aligned with international best practices.”
The Prime Minister noted that given the importance of financial services as the second pillar of this nation’s economy, which employs many talented Bahamians, the inclusions of trust dispute resolution is a major advancement that opens the door to possibility.
“The global financial services market is very competitive and to stay ahead of the competition we must remain at the cutting edge. Ensuring that trustors and trustees can rely on our arbitration processes to resolve disputes was absolutely necessary to strengthen our financial services product. Wealth management experts and those in search of wealth management services can be sure that The Bahamas will be a top choice for them to generate wealth and secure legacies,” he said.
The Prime Minister noted that the International Commercial Arbitration Bill (2023) introduces a streamlined, transparent, and efficient legal framework for dispute resolution.
“In this Bill, we now have clear rules governing dispute resolution between international parties involved in commercial agreements with Bahamian entities outside the bounds of the civil court,” he said.
“This Bill establishes the grounds for an arbitration agreement as a written agreement entered into willingly by both parties. It does not force those who, from the onset, desire to resolve disputes through the courts. It is, however, a solution for those who prefer the efficiency of alternative dispute resolution processes to the more arduous litigation process. The Bill goes on to specify the composition and jurisdiction of an Arbitral Tribunal, including grounds and procedures for challenging an arbitrator, as well as the process for determining whether or not a tribunal has jurisdiction over a matter. The rules regarding interim and preliminary measures are clearly outlined, as well as the conduct of the proceedings themselves. Within this Bill is the provision that all parties are treated equally and are given a full opportunity to present their case.”
“The place of arbitration, the language of the proceedings, and the powers of the tribunal throughout the proceeding are also established. Tribunals will now have the power to appoint experts and extend time limits,” said Davis noting that the Bill also protects the confidentiality of proceedings and awards.
