with the continual innovation of finance, the traditional methods of guarantee have been gradually replaced by “balance compensation”. Paul Zhou, the managing partner of Wintell & Co, and Harry Wu, a partner at the firm, chose the controversial topic of “balance compensation” in financial disputes to discuss with guests for afternoon session of CBLJ Forum 2019.
Attendees included Zhang Haoliang, director of the Beijing Arbitration Commission (BAC) Business Development/International Case Division, Lin Haiquan, a BAC arbitrator, Lü Qi, the deputy general manager of the Legal Department of China Minsheng Bank, and Wang Qiang, general counsel at Zhongrong International Trust.
Through case studies, Wu explained and analyzed “balance compensation” with existing legal concepts and rules. From the perspective of arbitration, Zhang Haoliang said that the dispute resolution body would give priority to the true intention of the parties and the commercial substance of the contract. However, Zhang Haoliang added that the BAC would not render a ruling of balance compensation where unnecessary, so as to reduce the impact on external authorities and other contracts.