Report No. 246
Arbitrator's direct or indirect interest in the dispute
17. The arbitrator holds shares, either directly or indirectly, in one of the parties or an affiliate of one of the parties that is privately held.
18. A close family member of the arbitrator has a significant financial interest in the outcome of the dispute.
19. The arbitrator or a close family member of the arbitrator has a close relationship with a third party who may be liable to recourse on the part of the unsuccessful party in the dispute.
Explanation. - (1)The term 'close family member' refers to a spouse, sibling, child, parent or life partner.
(2) The term 'affiliate' encompasses all companies in one group of companies including the parent company.
(3) It may be the practice in certain specific kinds of arbitration, such as maritime or commodities arbitration, to draw arbitrators from a small, specialized pool. If in such fields it is the custom and practice for parties frequently to appoint the same arbitrator in different cases, this is a relevant fact to be taken into account while applying the rules set out above.
[Note: The above rules are taken and adapted from the Red list of the International Bar Associations Guidelines on Conflicts of Interest in International Arbitration.]"