Requirement Of Specific Authority For Representatives To Arbitrate In Turkish Law

Introduction

The issue of authority for representatives in arbitration is among the preliminary questions that require assessment both by arbitrators and national courts, if the lack thereof is alleged. The lack of authority causes numerous problems, including the arbitration agreement being null and void, any award thereunder being subject to annulment and not being enforceable. Such nullity will result in a dispute, mandatorily being resolved by national courts regardless of the intention to submit a legal dispute to arbitration.

Turkish law provides for certain requirements in order for a party to execute an arbitration agreement, or refer a matter to arbitration through a proxy. Voluntarily appointed proxies of such a party need to be expressly and specifically authorized to arbitrate within their powers of attorney.