This article is written by Yadu Krishna MS.

Introduction

People around the world have faced many challenges like war and terrorism over time. This situation brings volatility and insecurity to the economic market. It further leads to heavy recessions and increases in unemployment rates. In the present period digitization, automation and other advances are transforming industries, labour markets and the global economy. A growing number of countries are benefiting from the progress of international trade. Many companies are adhering to a corporate social business policy. The work of the International Chamber of Commerce is impacted by each of these developments.

When the organization was founded in 1919 the world had been war-torn for four years. The world economy had come to a halt. There was hardly any trade, production hardly, turnover or international trade. Immediately after the Great War a number of international entrepreneurs came to realize that it was precisely international commerce which held the key to prosperity. Trade, entrepreneurship and business are still the very keys to progress. International Chamber of Commerce was born out of necessity. It was brought forth by understanding and the will to create global opportunities. ICC Secretary General John Danil Evich has stated “less trade means lower growth less employment and fewer opportunities for the world’s poorest to escape poverty”. International Trade helps to close gaps across borders with respect to languages, culture, politics, religion and social differences. ICC moves people forward on the global platform. The international trade provides development possibilities. 

Download Now

International Chamber of Commerce is the world’s largest business organization. It has connection with 6.5 million members in more than 130 countries. It has almost 90 local ICC offices. ICC is the voice of business in major international organizations and negotiations like the UN, G-20 Summits, World Customs organization and many others. ICC’s unique mix of advocacy and standard-setting activities aims to create a global level playing field easily accessible to everyone with transparent rules and fair competition. The ICC members worldwide contribute their expertise to ensure fair competition and a minimum of barriers whilst trading. ICC works to promote international trade, responsible business conduct and a global approach. The ICC regulates activities like international arbitration, taxation, commercial law, anti-corruption, customs digital, economy, environment, energy, intellectual property trade, investment banking, marketing and advertising. ICC is a force to be reckoned with for small exporters, large enterprises, entrepreneurs, innovative start-ups and for all people and countries that see development possibilities.

International Chamber of Commerce or the World Business Organisation, has the role of connecting the many economic sectors of a market within various country. It represents sectors like –

  • industry, 
  • international business,
  • transport,
  • trade,  
  • insurance, and
  • finance.

Objectives or importance of the ICC

  1. It looks into the problems of corporations, companies, organisations, firms and individuals carrying on trade and their business works at the global level. The ICC communicates these problems to the appropriate authority to find a relevant solution.
  2. The ICC strives for harmonious unrestricted growth of international commerce through their consistent participation in the economic and legal fields.
  3. Assistance to global business community through expert and practical service.
  4. Maintaining the cooperation among various businessmen and organisations in distinct countries by bringing them together at a common platform.

Working bodies of ICC

Groups and National Committee (NC)

After gaining the membership the individuals, organisations and legal entities can represent the economic and financial sectors of its respective country. A National Committee of ICC can be setup by them after following certain procedures. The NC can be only be formed after consulting with the World Council. The World Council should then give approval for such establishment. The ICC World Council must also approve the articles of association of the NC. After approval the members should sign the Charter with the World Council of ICC. The publications and documents of the established NC must clearly signify its connection with International Chamber of Commerce.

If the World Council refuses to recognise a group of members as a NC. It would further lead to dissolution. A National Committee is free to frame its rules within the purview of provisions in the Charter and the Articles of association of the National committee.

The role a NC within its country-

  • It acts as a link between International Headquarters of ICC and ICC members of its respective country, by participating and representing such members especially in World Council meetings.
  • The National Committees in their countries are to organise events to spread the works of ICC to promote the co-ordination with the International Headquarters. A NC is duty bound to communicate the problems faced by the economic sector within its country to the ICC.
  • The delegates or the representatives to Commissions of ICC are appointed by the National Committees.
  • According to relevant demands of ICC members and the economic sectors in its country, the NC should provide the required service or information.
  • ICC draws certain policies for international business operations. Such policies given out are not binding on any country. A National Committee strives for the adoption and practical implementation of these policies by the governmental authorities and agencies within its country.
  • Uses all the reasonable methods to promote a wider application of the ICC rules and codes in its country.

A National Committee has the power to choose a delegate to represent itself and ICC members of its country in the World Council. If the mentioned delegation is absent then a NC can appoint a proxy for the representation of the same. NC should have an administrative setup to ensure participation from the members of ICC in its country, in the events or activities of ICC. If the NC fails to perform the mentioned obligation, the World Council must take reasonable measures to establish the effective communication with ICC members of the country in question. In order to cover the operational expenses and financial obligations of the NC towards ICC, the NC is empowered to set its own membership fee. A National Committee is to inform regarding its annual balance sheet at the International Headquarters in Paris.

The authorities responsible in the everyday operation or management of National Committees must meet at the International Headquarters, at least once every year. Such authorities of each NC are called by the Secretary General for the meeting at the International Headquarters. The agenda for such meeting is fixed by the Secretary General. 

A National Committee can participate in the meetings held by the World Council on the decision of the World Council, provided such decision is backed by two-thirds majority in the World Council. A given country can either have a NC or a Group, but both cannot exist for that country. Every NC will have a National Commissioner, whose duty is to represent the NC at the International Headquarters in Paris. The National Commissioner will work for the benefit of the NC. The National Commissioner is obligated to give a brief report regarding the activities of the NC to the Secretary General, when such demand is made by the Secretary General. 

Direct Members (DM) 

On the failure to form a National Committee or a Group by any individual, company or legal entities, the World Council, upon the proposal made by the Executive board can recognise such individual, company or legal entity as Direct Members.

The Chairman is empowered to give invitation to the Direct Members to participate in the ICC Conferences.Through the help of various documents and publications the DM are updated on the activities of ICC.

The World Council can associate the DM to the activities or events of any ICC Commission, but such decision shall be taken by the World Council upon the proposal made by the Secretary General for the same.

The Direct DM can participate in the meetings conducted by the World Council. But only a maximum of 10 delegates can represent them at the meeting. These delegates are to be changed on a yearly basis by the WC upon the proposal by the Chairman for the same.

GOVERNING BODIES OF ICC

World Council (WC)

The WC is the supreme body according to the hierarchical order of ICC. The WC is formed when all the ICC members come together for the Annual General Meeting held once every year. The meetings held by the WC is to be presided by the Chairman. These international body is vested with the power to ensure practical implementation of the provisions inscribed in the Charter and Constitution of ICC.

The WC has the exclusive privileges on following matters –

  • Electing, appointing or ratifying the appointment of the person or persons qualified to be-
  1. Chairman, 
  2. Vice-Chairmen, 
  3. Executive Board members,
  4. President, vice president and members of the International Court of Arbitration,
  5. Secretary General,
  6. External Auditors.
  • Determining the contributions made by National Committees and Direct Members in ICC using reasonable steps or methods.
  • Approving annual accounts.
  • Amending the provisions in the ICC Charter or Constitution.
  • Approving the establishment of new National Committee and its Article of Association.
  • The WC provides certain powers to the founders of a National Committee to facilitate its establishment.
  • Recognising a certain group as Direct Member.

– When a National Committee is ignorant of its duties to ICC, the World Council will reject the recognition of a National Committee, which results in the National Committee being dissolved. Such refusal to recognise prohibits that National Committee from using the symbol and signs of ICC 

– Responsible for setting up and concluding the functioning of ICC working bodies.

– Decisions related to assets of ICC.

– Evaluating the number of votes that may be casted by the delegates of National Committee or its authorised proxies.

– Termination of membership of any ICC member.

Executive Board (EB)-

These body devises and plans the best possible scheme to give out the favourable output to the events or activities of ICC. It also concentrates or works on the financial aspect of ICC. There are twenty-seven members in the EB, all having the same and equal rights. The EB consists of both the ex- officio and elected members.

The ex officio members in the Executive Board include – 

  • Chairman, 
  • the Vice-Chairmen, 
  • the Honorary Chairman, 
  • Any person holding the position of Chairman in WCF in ICC, 
  • Any person holding the post of Chairman in WBCSD

The election of the remaining members in the EB is dealt by the World Council, on suggestions given by EB. The persons elected can remain as members of the EB for three years. For a group of persons to be elected as members of the EB should qualify any of the following qualifications-

(i) 10 senior business officials, having a good understanding of ICC provided National Committees should suggest their names to the Nominations and Human Resources Committee of the Executive Board or,

(ii) five individuals belonging to corporate board representing a company can be qualified to be a member of ICC. But their names should be suggested by any interested individual or a group to the Nominations and Human Resources Committee of the Executive Board or,

(iii) three persons satisfying either of the two conditions mentioned above or,

(iv) two representatives of Chamber of ICC having an established experience in the business field can be members of EB. Their names should be suggested by WCF to the Nomination and Human Resources Committee of the Executive Board.

ICC Executive Board has the following duties:

– suggesting the name of persons or persons to the WC qualified to be- 

  • the Chairman, 
  • the Vice-Chairmen, 
  • the President of the International Court of Arbitration, 
  • and members of the Executive Board.

– recommending the organisations or legal entities to the WC to be recognised as Direct Members;

– the World Council ratifies the appointment of the Chairman of the WCF through election report submitted by the EB,

– suggestion to the WC for appointing the Secretary General,

– appointing the members of the Committees of the EB upon proposal by the Nominations and Human Resources Committee,

– the annual budget of ICC is put into effect by the EB,

– calculating the contributions of NC and DM,

– communicating or informing the annual accounts to the WC for acceptance,

– suggesting the World Council for approval or dissolution of NC,

– recommending to the WC the creation and termination of ICC working bodies, 

– deciding the time period for the functioning of ICC Commissions.

– authenticating the ICC documents related to its policies.

The EB has various committees’ function under it to fulfil its obligations or duties. Some of them include –

  • Nominations and Human Resources Committee, 
  • Finance Committee, 
  • Global Network Committee,
  • Policy and Commissions, and 
  • Governing Body for Dispute Resolution Services Committee.

Finance Committee and the Governing Body for Dispute Resolution Services are permanent committees. The remaining committees in the above can be terminated by the EB at any point of time. These Committees are to work within the area or field of work allotted to them by the EB. The Committees should work in co-ordination in furtherance of discharging the duties of the EB.

Chairman, vice chairmen, honorary chairman and chairmanship 

The Chairman is the highest position attained by a person in the ICC. The Chairman has various groups or organisations working below him or her to represent ICC in different international events. The vice-chairmen help the Chairman in fulfilling his obligations. The vice- chairmen can be classified as first vice-chairman and secondary vice-chairman. When the Chairman is unable to perform his duties due to death, resignation or some other reason. The first vice-chairman will take his position and deliver his functions. The secondary vice-chairman is generally entrusted with missions which are occasional or specific in nature. But when the first vice-chairman is unable to fulfil his obligations, the secondary chairman will replace him and get all the rights and duties of the first chairman. After the completion of term of the Chairman, he will be an Honorary Chairman. The Honorary Chairman is an ex-officio member of the World Council and Executive Board. The Chairman, Vice-Chairmen and Honorary Chairman have the same term of 3 years. But the term of Honorary Chairman may be reduced to one year on the request made by the subsequent Chairman. 

The Chairmanship comprises the Chairman, Vice Chairmen and Honorary Chairman. The Chairman heads the Chairmanship. The Chairmanship comes up with plans and strategies to implement the purpose of ICC. It suggests the name of the person who is qualified to be the chairman of the committees of the Executive Board. The appointment of the individual for such post is to be done by the Executive Board.

Secretary General (SG)

The Secretary General is to work within the structure or area allotted to them by the Executive Board. The Secretary General is to work in furtherance of the policy related plans and strategies determined by the Executive Board. The Secretary General is appointed by the World Council based on the suggestion by the Executive Board. The Secretary General can take on staffs and manage them within the purview of the budget. The Secretary General is to implement activities which fully utilise the ICC resources and finances.

The Secretary General will be ex-officio member of the World Council. The Secretary General is to maintain strong connections with various governmental and non- governmental institutions in interest of the ICC. The Secretary General scrutinises the activities and contributions made by the National Committee and submits the report of the same to the Executive Board. When the Secretary General is not able to perform his duties, the Chairman will replace him to discharge his obligations.

International Court Of Arbitration

Since the dawn of time, from Antiquity to the French Revolution, from China to the Arab countries, men and women are involved in trade and commerce. This inevitably brought about conflicts and, in order to resolve them, traders have always turned to arbitration, even before state justice. International arbitration has boomed since 1945, as nations started to trade again and even more so since the end of the 1980s, when the world entered a new era of globalisation. Arbitration can be found in every country, but also in every sector of the economy, resolving disputes about the sale of goods, in the construction or the hotel industry, entertainment, oil and gas or healthcare sector. All major international brands, small and mid-size businesses use arbitration.

For e.g. if a French luxury brand wishing to open a store in Singapore through a local Singaporean company. Obviously, at the inception of their relationship, the two companies will sign an agreement to secure their business and commercial relationship, with provisions governing know-how, payment, delivery, etc. But what if things go wrong in this business relation. Neither the French company nor the Singaporean one will trust the judiciary of the other company’s country. This is even more true when one contracts with a public entity. Imagine that, as a counterparty, the French company faces the Singapore State, so if there is dispute, the Singapore state may become judge in its own case. The Singaporean party will likely have the same perception should the issue be heard before French courts. The crux here is the arbitration clause, it is stipulated at the end of a contract (also at the end of investment protection treaties) in order to ensure a private, neutral and competent framework capable of efficiently resolving a dispute, should one arise, without any party feeling foreign to it. This therefore requires at least two parties in dispute, often of different nationalities, hence the use of international arbitration to operate such dispute.

The parties agree to nominate an independent and impartial individual third party, as opposed to a state judge, to resolve their dispute. Parties may even, if they wish, refer their dispute to several arbitrators. In that case, each party will nominate one arbitrator and a third arbitrator will be chosen by the party-nominated arbitrators or, as the case may be, the arbitration centre. Unlike a traditional trial almost everything can be agreed between the parties which can be the number and type of arbitrators, the place of arbitration and where the hearings will be scheduled, the applicable law, the calendar and procedural rules (language, cross-examining a witness, use of video conference, use of an attorney). This is commonly referred to as the autonomy of arbitration. 

Parties agree by contract to submit their dispute to an individual which is the arbitrator. His role is to render a decision, binding and final on the parties. Indeed, the arbitration award has the same authority as a judgment because of the treaty of 1958 New York Convention, which has the benefit of allowing awards to be enforced in almost 160 countries. As well as the arbitrators, arbitration centres are also very important actors. If the contract has referred to an arbitration centre, it will be in charge to frame and organise the entire proceedings. Centres regulate practices and can even nominate arbitrators. They offer tailored and swift procedures that allow for a definitive resolution to a conflict. The world’s main international arbitration centre is the International Chamber of Commerce (ICC), based in Paris but with offices on many continents. With around a thousand new cases every year, representing US$30 billion in dispute in 2017.

The International Court of Arbitration is a working body of ICC which governs or administers the arbitral procedures for ICC. In 2019, ICA has decided almost 829 cases. The responsibilities of ICA include-

  • Establishment of arbitral tribunals.
  • Checking the legal validity and enforcing the arbitral award.
  • Appointing and replacing the arbitrators.
  • When a complaint is filed against any arbitrator it shall be entertained by the ICA.
  • Making sure that the arbitration procedures are conducted as per Arbitration rules of ICC.
  • Managing the fee for arbitrators.

ICC Commissions 

A Commission is a specialised group consisting of experts. These experts will be well-versed in a specific subject or area of research coming within the purview of ICC. They contribute their expertise to increase the output of the Commission. For Eg- the ICC has set up the Belt and Road Commission to understand the Belt and Road initiative, and solve the business-related disputes connected to it. The ICC has also come up with Belt and Road mediation rules for the same. The ICC has set up various commissions to focus on various other dimensions of business. The policy statements, suggestions and documents (survey, statistical or research related) are made by these commissions for ICC. The chairman and vice- chairmen of ICC Commissions are appointed for a term of 3 years. 

Membership in ICC

To achieve membership certain conditions are to be fulfilled:

– The organisations at the national and local level which have the sole intention of representing the business and professional interests of its members. These organisations are not to be involved in any activity of political nature. 

– Companies, individuals and various other legal entities doing business operations on an international basis. Such organisation, company or legal entity should come under either the National committee or any group.

The organisations, individuals and legal entities in result to the membership procedure come under the respective National committee, now that National committee should make a notification of such membership. The World Council in the subsequent meeting can object to this membership. International Headquarters of ICC maintains a member registry where the names of the members will be taken down.

Resignation or termination of membership

When the Members of ICC give resignation, their membership will be automatically terminated. If these members come under the National Committee, their resignation application should be presented by the National Committee to the World Council. The termination of membership of a member is conveyed by the National Committee through a notice. But if a person comes under a group or Direct Members, then the Secretary General should notify the same. Also, when a member is removed from a National Committee his membership will be automatically terminated.

For the benefit or interest of the ICC, the World Council can take away the membership of any person. But such an issue or matter is to be supported with two-thirds of the votes cast by the representatives in the meeting held by World Council. Direct Members failing to discharge their obligations or dues towards ICC consecutively for two years shall result in membership being terminated.

Conclusion

The founding fathers of the International Chamber of Commerce had in mind to create an organization that would produce an economic environment that was conducive to economic growth and creation of jobs. The world has changed in the 21st century there are a number of emerging markets which didn’t exist even when the founding fathers founded the organization. The rules of ICC are changed every 10 years in order to cope up with this dynamic nature of the international society. The relevance of the ICC has increased as people are going to have to learn how to adapt to those markets. The future of ICC lies in producing high-quality and impactful policy work so that business worldwide can communicate effectively its priorities to government and that it can have a body that can develop rules to help it trade and invest internationally. It is a platform which provides mutually beneficial to the corporate and government institutions of various states.

In the Pandemic circumstances, the streets have become empty. The working environment of the people have changed. The financial sector worldwide is crashing. The GDP of the both the developing and developed countries are coming down. The rate of unemployment and poverty is increasing. The start-ups, small and medium enterprises are not able to cope up in the market. The government in many states are not able to come up with solutions to stop the shrinking of the economy. The ICC can play a very important role to bring solutions to cope up with the global recession, for the protection of interest of its members.

References

LawSikho has created a telegram group for exchanging legal knowledge, referrals and various opportunities. You can click on this link and join:

Follow us on Instagram and subscribe to our YouTube channel for more amazing legal content.

RELATED ARTICLESMORE FROM AUTHOR

LEAVE A REPLY

Please enter your comment!
Please enter your name here