WTC Macau Arbitration Center



	Decree-Law n.º 29/96/M of 11 June Legal Framework of Macau Judiciary Organization, approved by Law n.º 112/91, of 29 August, provides the creation of arbitral tribunals and the establishment of instruments and alternative ways to settle disputes other than the judicial, granting the Governor competence to order the publication of the supplementary legal diplomas required for its execution, which has been done during the last years. Subsequent to such process it is understood the time has come to revise the Arbitral Tribunal legal frame established in Book IV of the Civil Procedure Code. It is so approved the new legal frame for internal arbitration, bestowing the Territory with a regulation updated and adequate to the need of the legal operators and economic agents. In effect, this diploma takes into account not only the needs of the Territory but also the updates to arbitration performed by the laws of several countries, through a diversity of international conventions and by the regulations of specialized institutions. Among the great principles that shape this diploma it stands out the vast usage of the principle of the autonomy of the parties, by reducing, to the minimum, provisions of public order. In these terms; Heard the Executive Council; Developing the legal regime established by Law n.º 112/91 of 29 August, and in the terms of n.º 3 of Article 13 of the Macau organic Statute, the Governor declares, to be valid as law in the Territory of Macau, the following: Chapter I Voluntary Arbitration SECTION I General Provisions Article 1 (Submission of disputes to arbitration) The individuals or institutions, parties in a dispute, may submit it to arbitration, through an arbitration agreement, conferring to one or several arbitrators the respective settlement. Article 2 (Scope of the arbitration) l. The scope of the arbitration may be any dispute other than those concerning indispensable rights, if not subject by a special law to court or compulsory arbitration. 2. In particular, cannot be subject to arbitration: a) the disputes already settled by a final court decision, except when it concerns the decision of questions related with the future execution of the decision that aren’t part of it. b) The disputed subject to a process where the Public Prosecutor acts in representation of persons that lack the necessary capacity to represent themselves in court. Article 3 (Applicable law; equity) The arbitrators shall decide in accordance with the law, unless the parties have authorized them to decide according to equity, in the arbitration agreement or in a subsequent document signed until the acceptance by the first arbitrator. SECTION II Arbitration Agreement Article 4 (Categories) 1. The arbitration agreement by witch the parties submit a dispute for decision by, one or several, arbitrators may be: a) A submission agreement, when the subject-matter is a present dispute, even if it has been submitted to a court; b) An arbitration clause, when the subject-matter of the agreement is a possible future dispute arising from a given juridical, contractual or non-contractual relation. 2. The arbitration agreement may be included in a contract or a subsequent document signed by the parties. 3. If the arbitration agreement is included in a void contract that does not mean that the agreement is necessarily void, except if proven that the contract would not be made without the referred agreement. Article 5 (Capacity) 1. All persons who have full legal capacity are able to make arbitration agreements. 2. The territory of Macau and other public entities are embedded with capacity to establish arbitration agreements, when duly authorized by special act or if the subject-matter of the agreement is a dispute arising from a legal contractual or non-contractual relation. Article 6 (Form) 1. The arbitration agreement shall be concluded in writing; otherwise it may be considered void. 2. An arbitration agreement, included either in a document signed by the parties or coming out with exchange of letters, telexes, telegrams or other means of telecommunication, of which there is a written proof, is considered as concluded in writing. Provided, the agreement of the parties in the arbitral proceedings, if, not denied by the counterpart in its defense. 3. The documents refereed in paragraph 2 of this Article may include the agreement directly or refer to a document in which the agreement is included. 4. If, in the arbitration agreement, the parties refer to an order from an entity specialized in arbitration it shall be considered as part of the agreement. Article 7 (Subject matter) 1. The submission agreement shall state precisely the subject matter of the dispute and appoint the arbitrators or, at least, determine the method for their appointment. 2. The arbitration clause shall specify the legal relationship to which the future dispute refers. 3. The arbitral tribunal shall determine the subject matter of the dispute, in case the parties fail to reach an agreement on the specification of this. 4. Any clause in the arbitration agreement that grants to a party privilege in the choice of arbitrators shall be considered inexistent. 5. An arbitration agreement concluded in breach of paragraph 1 and 2 of this article shall be void. Article 8 (Revocation) 1. The arbitration agreement may be revoked by a document signed by the parties before the arbitral award is rendered. 2. The parties are obligated to inform the arbitral tribunal of the revocation agreement. 3. Even, if the arbitration agreement is revoked, the parties shall pay the arbitrators fees; as provided in the arbitration agreement or fixed in the chart referred in article 19, paragraph 4. Article 9 (Lapse of the agreement) 1. The arbitration agreement shall lapse regarding the dispute under consideration, on the following cases: a) When an arbitrator dies, refuses to accept his mandate or becomes permanently unable to perform it or when his appointment ceases to have effect, and he is not replaced in accordance with the provisions of this Decree-Law; b) When a majority of votes is not attained, in case the tribunal is composed by more than one arbitrator, under the terms provided in the agreement or in this Decree-Law; c) When the award is not rendered within the term provided, by the arbitral agreement or in a document subsequently signed by the parties, or in the term provided by this Decree-Law. 2. Unless otherwise agreed by the parties, the arbitration agreement shall not lapse and proceedings of the arbitral tribunal shall not become extinct due to death or extinction of a party. SECTION III Arbitral Tribunal Article 10 (Composition of the Arbitral Tribunal) 1. The arbitral tribunal may be composed of a sole arbitrator or of an odd number of arbitrators. 2. Unless the number of arbitrators is determined in the arbitration agreement or in a subsequent document signed by the parties, the tribunal shall be composed of three arbitrators. 3. If the parties determine an even number of arbitrators, the tribunal is complete with the appointment of one arbitrator by agreement of the other arbitrators or, if no agreement is reached, under the terms of Article 16. Article 11 (Appointment of arbitrators) 1. The parties shall, in the arbitration agreement or in a subsequent written document signed by them, either appoint the arbitrator or arbitrators who will compose the arbitral tribunal, or determine the method for their appointment. 2. If the parties have neither appointed the arbitrators or determined the method for their appointment, in the arbitration agreement or by a subsequent written agreement, each party shall appoint one arbitrator, unless they agree to appoint more than one, in equal number. 3. The arbitrators appointed as provided by paragraph 2 of this Article, shall appoint, by agreement, one arbitrator to complete the arbitral tribunal. 4. In the case provided in paragraph 3 of this Article, if the arbitrators fail to reach an agreement on the person to appoint as arbitrator, Article 16 shall be applicable and the President shall be the arbitrator appointed by the tribunal. 5. In case the arbitration is entrusted to a specialized institution, the respective regulation is applicable. Article 12 (Qualifications of the arbitrators) 1. The arbitrators must be individuals enjoying full legal capacity. 2. When the arbitration agreement or a subsequent document signed by the parties appoints a certain institution to act as arbitrator is understood that the arbitration shall be organized by such institution, as provided by its regulations, if it is a specialized institution, otherwise the appointment shall be disregard. 3. If, the arbitration agreement or a subsequent agreement signed by the parties provides the need for conciliation attempt prior to the constitution of the arbitral tribunal, the person that acted as conciliator is forbidden to act as arbitrator, unless otherwise agreed by the parties. Article 13 (Freedom to accept; withdrawal from office) 1. The persons appointed as arbitrators may reject the appointment, freely. 2. If the appointed arbitrator is willing to accept it he must state so in a written document addressed to both parties, within the first ten days subsequent to the notice of the appointment. 3. However, is deemed to be accepted the appointment of a person that performs, without reservation, actions that reveal the intent to act as an arbitrator, even before the end of the term provided in paragraph 2 of this Article. 4. If an appointment has been accepted a withdrawal from office shall only be lawful when based on a supervening impossibility for the appointee to perform his function, except if the parties agree on the regarding the request for withdrawal. 5. The person who, having accepted the appointment, unjustifiably withdraws from office shall be liable for the damages he has caused. Article 14 (Impediments; refusals) 1. The provisions of the civil procedure law regarding impediments and refusals shall be applicable to the appointment of arbitrators, except for what is provided in paragraph 2 of this Article. 2. The arbitrators may only be refused by grounds following the appointment, without prejudice of refusal by grounds previous to the appointment when they were not directly appointed by the parties or when the parties acknowledge the grounds after the appointment. 3. The persons appointed to act as arbitrators are obligated to, immediately, reveal to the parties any circumstances that may determine their refusal, as soon as they have knowledge of them, and may only accept or continue to act as an arbitrator upon agreement of the parties. 4. The party that wishes to refuse an arbitrator must inform the other party and the arbitrators, already, appointed of the grounds for refusal, within 15 days from the notice of the appointment, designation, constitution of the tribunal or of the knowledge of the impediment, unless otherwise provided by the arbitration agreement or by a subsequent document signed by the parties. 5. If the absence of agreement on the way to decide a refusal it shall be decided by the competent Court, without appeal, unless the challenged arbitrator opts to resign from his duties or the other party accepts the challenge. 6. The arbitration is suspended until the final decision of the refusal. Article 15 (Constitution of the arbitral tribunal) 1. Unless provided otherwise, by the arbitration agreement or a subsequent document signed by both parties, the constitution of the arbitral tribunal is done under the terms provided in the following paragraphs of this Article. 2. The party wishing to refer a dispute to the arbitral tribunal shall notify the other party of that fact, by registered mail with acknowledgement of receipt. 3. The notice referred in paragraph 2 of this article shall refer to the arbitration agreement and specify the subject matter of the dispute if it has not yet been done in the arbitration agreement. 4. Whenever the parties are entitled to appoint one or more arbitrators, the notice shall include the appointment of the arbitrator or arbitrators by the party wishing to commence the arbitral proceedings and the invitation to the other party to act accordingly. 5. Should a sole arbitrator be appointed by both parties the notice shall include the proposal of the person to be appointed and the invitation to the other party to express its agreement or not. 6. Should one or more arbitrators be appointed by a third person, that has not yet done so, the party wishing to commence the arbitral proceedings shall notify the third person to make the appointment in the agreed terms, when provided, or within 15 days and give notice to both parties. Article 16 (Appointment of arbitrators) 1. Whenever the appointment of the arbitrator or arbitrators does not comply with the provided by the previous articles, such appointment must be made by the competent judicial Court, unless provided otherwise by the parties. 2. The appointment may be requested by the interested party within 30 days from the notification mentioned in paragraphs 2 and 6 of Article 15 or from the appointment of the last arbitrator in such cases as mentioned in paragraph 3 of Article 10, and paragraphs 2, 3 and 4 of Article 11. 3. The parties may request the replacement of the arbitrators appointed by the judicial Court based on the grounds mentioned in article 14, within 5 days from notice of the appointment. 4. The appointments made by the competent judicial Court shall not be subject to appeal. Article 17 (Replacement of arbitrators) If any of the arbitrators dies, withdraws from office, is refused, becomes permanently unable to perform his functions or if his appointment ceases to be in effect he shall be replaced according to the rules applicable to the appointment, appropriately adapted, unless the parties agree that no replacement is allowed. Article 18 (President of the arbitral tribunal) 1. If the arbitral tribunal is composed by more than one arbitrator, the arbitrators shall choose the President among themselves, unless the parties have choose or indicated, upon written document, the way to do it or in the case provided by paragraph 4 of article 11. 2. If the appointment of the President is not possible according to the procedure established in the previous paragraph, it shall be made by the judicial Court, as provided in Article 16, adequately adapted. 3. Unless otherwise agreed by the parties, the President of the arbitral tribunal is competent to appoint a secretary or secretarial personnel, prepare the proceedings, direct the instruction of the process, conduct the hearings, coordinate the debates, and prepare the award. Article 19 (Fees and expenses) 1. The arbitration agreement or a subsequent agreement signed by the parties must provide the fees of the arbitrators and other participants in the proceedings as well as the allocation between the parties of any advance of costs and final expenses, unless provided by any arbitration regulations to which they refer. 2. Unless otherwise provided by the arbitration agreement or by a subsequent document signed by the parties, the final expenses shall be borne on the terms fixed in the award. 3. The advance of costs may be entirely borne by one party, in substitution of the other, if one of the parties does not advance the sums as required. 4. Unless otherwise provided by the arbitration agreement or lapse of agreement by the parties, the fees of the arbitrators and other participants in the proceedings shall be established in a chart to be approved by the Governor. SECCION IV Arbitral Proceedings Article 20 (Basic principles of the arbitral proceedings) The following basic principles shall be respected, in any fase, in the arbitral proceedings: a) The parties shall be treated equally and each must have the same opportunities to defend its rights; b) The principles of equity and due process of law must be assured, each party shall have all opportunities to defend its claim and express its views regarding the dispute and the issues that arise during the proceedings; c) The respondent must be summoned to present his defense and he may subscribe a counterclaim, under the terms set in the arbitration agreement or a subsequent document signed by the parties, in the same way provided in the civil procedure law; d) The parties must be heard, orally or in writing, before the final award is made; e) Unless otherwise agreed by the parties, the parties shall be notified by registered mail, with reasonable anticipation, of the dates and location of the hearings and tribunal meetings to verify evidence and discuss any pending legal issues, as well as of all the articulated pleadings, allegations, petitions, documents presented and decisions made. Article 21 (Rules of procedure) 1. The parties may agree, either in the arbitration agreement or in a subsequent written document, concluded before the acceptance of the first arbitrator, on the rules of procedure to be followed in the arbitration, as well as on the place of the arbitral tribunal. 2. The parties may agree to choose an arbitration regulation from a specialized arbitration institution. It is understood that such agreement exists whenever the organization of the arbitration is submitted to such a specialized institution. 3. If the parties fail to agree on the rules of procedure or on the place of arbitration, such decision shall be made by the arbitrators. Article 22 (Representation of parties) 1. The parties are free to appoint who will represent or assist them before the tribunal. 2. Any clause containing the parties’ agreement to exclude the participation of lawyers in the arbitration shall be considered void, unless it is a demand resulting from a regulation of a specialized arbitration institution to which such clause refers to. 3. It is applicable to these matters, with the appropriate adjustments, what is provided in Article 12, paragraph 3. Article 23 (Default of a party) 1. If, after receiving notice, the applicant does not present his statement of claim containing his objectives, the arbitration becomes ineffective and he is responsible for the tribunal constitution costs. 2. If the respondent does not present his defense within the timeframe granted, the arbitral tribunal shall make sure he received notice and ordain the proceedings to continue. The lack of defense will not be considered as an acceptance by the respondent of the claim of the applicant, unless provided otherwise. 3. If a party fails to be present at a hearing for which it was summoned or fails to supply documents as evidence, the judicial court shall order the proceedings to continue based on the evidence already gathered, without prejudice of the provided in Article 25. 4. If it is provided conciliation prior to arbitration, the arbitral tribunal shall order the claimant to prove that such conciliation was convened. 5. If it was not convened, the arbitral tribunal shall suspend the arbitration for a maximum period of 30 days, during which the claimant shall work out the necessary efforts to convene the conciliation attempt. 6. If, at the end of the suspension term, referred in paragraph 5 of this Article, the claimant has made no efforts to convene the conciliation attempt, the arbitration becomes void and shall be responsible for the tribunal costs. 7. The arbitration continues if the claimant demonstrates to have made efforts to convene the conciliation attempt, even when it did not occur by reasons alien to the claimant. Article 24 (Interim measures; provisional or conservatory measures) 1. The initiation of interim measures in a judicial Court, before or after the constitution of the arbitral tribunal, is not contrary with the arbitration agreement and it does not imply dismissal of the arbitration. 2. The claimant of the interim measure must begin the necessary proceedings to constitute the tribunal, within the term provided in the civil procedure law to propose the judicial Court action that validates the interim measure. 3. Unless otherwise agreed by the parties, the arbitral tribunal may, upon request of either party, order them to take such interim measure of protection as the arbitral tribunal may consider necessary in respect of the subject-matter of the dispute or may require either party to provide appropriate security. 4. If, the parties do not comply with the decision provided in paragraph 3 of this article the arbitral tribunal may request the competent judicial Court to order its execution. Article 25 (Evidence) 1. Any evidence accepted by the civil procedure law may be submitted to the arbitral tribunal. 2. A person that has acted as a conciliator in the dispute is forbidden to testify or participate as an expert, unless otherwise agreed by the parties. 3. The arbitral tribunal may, on its own or by demand of any of the parties, request the judicial Court assistance in gathering evidence, namely when it depends on the voluntary action of the parties or a third person that is not willing to collaborate. 4. The results of the evidence brought before the Court shall be written or registered by any other appropriate manner and sent to the arbitral tribunal. SECTION V Arbitral award Article 26 (Term) 1. In the arbitration agreement or in a subsequent written document signed by the parties until the acceptance of the first arbitrator, the parties may establish the term for the award or the way for setting such term. 2. Unless otherwise agreed, the term for the award is 6 months. 3. The terms referred in paragraphs 1 and 2 of this Article begin with the designation or appointment of the last arbitrator, unless otherwise agreed by the parties. 4. The term for the award may be extended, one or more times, upon written agreement of the parties. 5. In case of impediment, refusal, excuse or need to replace an arbitrator, as well as in case of death or extinction of a party the term to render the award is suspended until it has ended the cause for the uncertainty or lack of arbitrator or when the successor of the party has been nominated. 6. To the arbitrators that unfoundedly prevent the rendering of the award in due time shall be applicable the provisions of Article 13 paragraph 5. Article 27 (Competence of tribunal to rule on its own jurisdiction) 1. The arbitral tribunal may rule on its own jurisdiction and in this connection on the existence, validity and enforcement of the arbitration agreement or of the contract that provides it. 2. The objection that the arbitral tribunal lacks substantive jurisdiction must be raised, not later than the time of submission of the statement of defense, unless otherwise provided. 3. The arbitral tribunal may acknowledge the objection referred in paragraph 2, of this Article, immediately or until the award is rendered. 4. A party is not precluded from raising such an objection by the fact of having appointed an arbitrator. Article 28 (Stay of proceedings; withdrawal, confession or settlement) 1. In any moment of the arbitration proceedings until the final award the parties may agree to suspend the arbitration for a certain period, no longer than 60 days, through written document signed by both parties and submitted to the arbitral tribunal. 2. The suspension referred in paragraph 1 of this Article also applies to the term provided in article 26, for an equal period. 3. The parties may stay the proceeding if the claimant withdraws his claim, if the respondent accepts the claim or the parties agree to settle the dispute. 4. The withdrawal of the claim will not affect the validity of any counterclaim of the respondent. 5. In the cases provided in paragraph 3 of this Article, the tribunal shall register this settlement in the form of an award, subject to the provisions of Article 30. Article 29 (Deliberation of the arbitral tribunal) 1. If the arbitral tribunal is composed by more than one arbitrator, any decision of the arbitral tribunal shall be made by a majority of all its members, except for the provided in paragraph 2 of this article. 2. The arbitration agreement or a subsequent document signed by the parties, until the acceptance of the first arbitrator, may require a qualified majority to make the award, or that, in the absence of the required majority, the award shall be made solely by the President or in aim of the President vote. Article 30 (Form and contents) 1. The award shall be made in writing and signed by the arbitrator or arbitrators. 2. In arbitral proceedings with more than one arbitrator, the signatures of the majority of all members of the arbitral tribunal shall suffice, provided the reason for any omitted signature is stated. 3. If, there are votes contrary to the decision, they shall be registered and duly identified. 4. The award must necessarily contain: a) The identification of the parties and of the arbitrators; b) Reference to the arbitration agreement; c) The subject matter of the dispute; d) The place of arbitration and the place and date when the award was made; e) The signature of the arbitrators, the votes against and other notes as provided in paragraph 2 of this Article; f) The decision on the amount and burden of the arbitration costs, in accordance with the provisions of Article 19. 5. The award must be substantiated. Article 31 (Correction and interpretation) 1. Unless otherwise provided, within 30 days, from receiving notice of the award, any party may request the arbitral tribunal to correct any errors in computation, any clerical or typographical errors or any errors of similar nature or to give an interpretation of specific parts of the award. 2. Either party may request the correction or interpretation of the award at the same time, in a sole application. 3. The arbitral tribunal may correct any errors in computation, any clerical or typographical errors or any errors of similar nature within the term provided in paragraph 1 of this article. 4. The tribunal shall judge the correction or interpretation requests after hearing the other party. 5. The decision mentioned in paragraph 4 of this Article is complementary and becomes a part of the award. Article 32 (Deposit) 1. After serving notice of the award to the parties and in absence of any requests for correction or interpretation, the President of the tribunal shall deposit the original of the award with the competent Court, serving notice thereof to both parties. 2. The deposit may be waived by written agreement of the parties or, in case of institutional arbitration, if the respective regulations provides otherwise. Article 33 (Termination of the arbitrators functions) The functions of the arbitrators terminate when the notice of the deposit of the award is served or, if the deposit was waived, after the term referred in article 31, paragraph 1, when there are no correction or interpretation requests. Article 34 (Recourse) 1. The arbitration agreement or a subsequent written document signed by the parties may provide the constitution of an arbitral recourse tribunal. There must be necessarily provided, otherwise it will be void, the conditions and term for presenting the recourse, the grounds and the composition of the recourse tribunal, unless these elements are provided by a regulation of an arbitration institution to which the parties refer. 2. The parties may also agree on the arbitration agreement or in a subsequent document signed by the parties until the acceptance of the first arbitrator, the possibility of appeal to the Court of Last Instance, in accordance with the respective provisions of the civil procedure law. 3. The consent given for the arbitrators to decide according to equity constitutes a waiver of the right of recourse, even when agreed by the parties. Article 35 (Force of res judicata and enforceability) 1. The award acquires force of res judicata when it cannot be subject to correction or interpretation applications or set aside by means of recourse. 2. The arbitral award is enforceable on the same terms as any decision from a judicial Court. Article 36 (Enforcement and refusal) 1. The proceeding for enforcement of the arbitral award shall be made by the competent Court, in accordance with the provisions of the civil procedure law. 2. The respondent may refuse the enforcement of the award as provided in the civil procedure law. SECTION VI Setting aside and challenge of the arbitration award Article 37 (Setting aside) 1. Grounds for setting aside the award: a) The dispute was not capable of settlement by arbitration because the subject-matter of the dispute concerns inalienable rights; b) The notice referred in Article 20 subparagraph (c) was not served to the respondent and he was unable to present his case; c) The tribunal acknowledged matters beyond the scope of arbitration or failed to decide on matters that it should have; d) The award is in conflict with the public order. 2. The grounds provided in paragraph 1c), of this Article, only imply setting aside part of the award if decisions regarding the matters of the arbitration may be detached of the matters that were not subject to arbitration or that were erroneously submitted to arbitration. 3. At any time, any interested party or the Public Prosecutor may request the setting aside of the award and it may also be declared by the competent Court on its own. 4. The decision that sets aside the award shall be of appeal before the Court of Last Instance. Article 38 (Annulment) 1. If the parties did not agree on the possibility of appeal, the award shall only be annulled by a judicial Court on any of the following grounds: a) Any of the parties lacks capacity to enter in an arbitration agreement or any of the situations provided in Article 2 paragraph 2 (b) has occurred; b) Was rendered by a tribunal that did not have jurisdiction or was not properly constituted; c) that there was a breach of one of the mandatory procedural rules referred to in Article 20, with major influence in the outcome of the dispute, without prejudice of the provided in Article 37 subparagraph 1 (b); d) lack of the arbitrators signature, in breach of paragraph 1, of this Article, and Article 30 paragraph 4 (e); e) is unsubstantiated. 2. The grounds for setting aside the award provided in subparagraph b) of paragraph 1 of this article cannot be invoked by a party that had knowledge during the proceedings and willingly did nothing. 3. In case the parties had provided the possibility of recourse, the grounds for setting aside the award, provided in paragraph 1 of this article, shall be included within the scope of the appeal. Article 39 (Annulment procedure) 1. The application to annul an arbitral award shall be made before the competent Court, by either party, within 30 days from receiving its notice. 2. The pending of the application for annulment of the award is considered, to all legal effects, as a devolutive appeal and does not prevent the parties from requesting a writ of execution based on the award. 3. The decision regarding the application to annul the award shall be subject to appeal to the Court of Last Instance. CHAPTER II VOLUNTARY ARBITRATION WITHIN ADMINISTRATIVE DISPUTES Article 39-A (Scope) In respect to administrative disputes may be submitted to arbitration matters with the following scope: a) Administrative contracts; b) Administration liability or the liability of public administrators, civil servants or agents for damages resulting from actions undertaken on performance of their public duties, including the enforceability of the right to be reimbursed. c) Personal rights or legally protected real rights, namely payments that are not tax related. Article 39-B (Constitution and proceedings of the arbitral tribunal) 1. The arbitral tribunal constitution and proceedings shall be, with the necessary adjustments, as provided in Chapter I of this Decree-Law. 2. The references in Chapter I made to the competent Court and the civil procedure law shall be regarded as made to the Administrative Court and the administrative procedure law. Article 39-C (Competence to propose, accept and sign an arbitration agreement and to appoint arbitrators) 1. If, it is intended to submit to arbitration disputes in which the territory is or may be a party, the Governor shall ask the other party to accept the arbitration agreement. 2. When any other party intends to settle the dispute through arbitration in the terms provided by paragraph 1 of this Article, he shall he shall ask the Governor to accept the arbitration agreement. 3. The Territory shall accept or refuse the arbitration agreement through an Order of the Governor, within 60 days. 4. The lack of the order within the time provided in paragraph 3 of this Article is considered as refusal of the arbitration agreement. 5. In case of acceptance, the Governor shall sign the arbitration agreement and appoint the arbitrators that the Territory is entitled to appoint. 6. If, any other public entity is a party of arbitration dispute, the competence to perform the acts provided in the above paragraphs shall belong to the president of the respective executive committee or any equivalent post. CHAPTER III Necessary arbitration Article 40 (Procedure) 1. If, the arbitration is provided by special law, the proceedings shall follow what is stated therein. 2. Unless otherwise provided, the provisions of the above Chapters shall be applicable, whenever possible. CHAPTER IV Final provisions Article 41 (Institutional voluntary arbitration) The Governor shall define, through Decree-Law the conditions to recognize the competence of certain institutions to perform, in the Territory, institutional voluntary arbitration, of general and specialized nature, as well as to revise or eventually revoke such authorizations granted, whenever justified. Article 42 (Revoked) (…) Article 43 (Changes to the civil procedure code) (…) Article 44 (Application) This Decree-Law shall enter into force on the 15^th September 1996. Approved, 29 May 1996. For publication. The Governor, Vasco Rocha Vieira.