Question

The articles of Milkline (Z) Ltd provide that any dispute between the company and its members should be referred to arbitration. Tick Tembo who is both Director and Shareholder is alleged to have improperly drawn allowances. The Company has commenced proceedings in the High Court to recover the money. Tick Tembo wishes to have the proceedings in the High Court discontinued and the matter referred to arbitration as provided for in the articles.

Advise Tick Tembo.

Answer 1

Tick Tembo can apply to the High Court to stay (pause) the proceedings and have the dispute referred to arbitration as provided for in the articles of Milkline (Z) Ltd. This can be done under Section 6 of the Arbitration Act (Chapter 7:15 of the Laws of Zimbabwe). However, it is important to note that the court has discretion in granting such an application, and Tick Tembo may need to show that the dispute falls within the scope of the arbitration agreement in the articles. It is advisable for Tick Tembo to seek the assistance of a lawyer to guide him through the process.

Step-by-step explanation: