Cooperative Dispute Resolution in Finland

Abstract

Like other organisations, cooperatives encounter internal disputes in their lifecycle. The article examines the mechanisms available for cooperatives to resolve internal conflicts in the context of Finnish legislation and court practice. While the share of cooperatives is significant in Finland’s economy, the legal literature on cooperative dispute resolution is sparse. The article focuses on the Cooperative Act of 2013 dispute resolution provisions. The article traces the historical development of cooperative dispute resolution provisions in Finnish legislation and scrutinises how cooperative bylaws handle dispute resolution. While the 2013 Cooperative Act expanded the use of arbitration for resolving cooperative disputes, there remains a gap in understanding the practical implications due to the shortage of reported cases. The study reveals the emphasis the Cooperative Act puts on resolving cooperative disputes in arbitration and the preference for arbitration by cooperatives with a substantial market share.Received: 28 April 2023 Accepted: 10 December 2023