ARMENIA Trends and Developments Contributed by: Mesrop Manukyan, Maria Petrosyan, Grigor Grigoryan and Anahit Sargsyan, MB Legal
Corporate Governance and Shareholder Disputes The maturation of corporate litigation in Armenia is one of the most visible trends in the 2026 market. His- torically, corporate disputes were often handled within the broad and sometimes inconsistent framework of general civil litigation. However, the comprehensive modernisation of the Civil Procedure Code in the last decade has introduced a “Specialised Proceedings” subsection specifically for corporate disputes. The Civil Procedure Code now provides an exhaustive list of matters categorised as corporate disputes, rang- ing from the validity of a legal entity’s formation and reorganisation to disputes regarding the ownership of shares and the liability of management bodies. A significant development in this sector is the increas- ing prevalence of derivative actions. Under the Civil Procedure Code, minority shareholders and partici- pants are now empowered to sue on behalf of the legal entity to recover damages caused by the man- agement or to invalidate unlawful transactions. This shift has fundamentally altered the power dynamics within Armenian boards of directors, as it provides a concrete mechanism for accountability that was previ- ously difficult to enforce. A trend is being seen where these disputes are no longer just about internal power struggles but are focused on fiduciary duties and the protection of the company’s long-term assets. Transparency and Judicial Integrity Reform A fundamental trend that underpins all other reforms in the Armenian legal system is the ongoing focus on judicial integrity and public accountability. The State has implemented a multi-layered vetting process for judges, which includes regular “integrity checks” con- ducted by the Commission for the Prevention of Cor- ruption. Judges are required to submit detailed annual declarations of their assets, income and interests, and any significant discrepancies can lead to disciplinary investigations by the Supreme Judicial Council. This focus on integrity is designed to restore public trust in the judiciary and to ensure that the rule of law is applied without bias or external influence. Transparency has also been institutionalised through the public availability of judicial data. The Armenian judicial portal (datalex.am) serves as a central data- base where nearly all final verdicts and interim orders
are published for public review. This practice is intend- ed to foster the uniform application of the law, as it allows advocates to cite previous rulings as persua- sive authority, creating a more predictable legal envi- ronment for businesses. The judiciary also maintains detailed statistics on case durations and judge work- loads, which are used to monitor the efficiency of the court system and to identify areas for future reform. However, this trend towards transparency is carefully balanced against the protection of personal and com- mercial privacy. Armenian law provides clear mecha- nisms for holding “closed sessions” when necessary to protect trade secrets, state security or the private lives of the participants. In such cases, only the final conclusion of the court is made public, while the sen- sitive underlying data remains confidential. This bal- anced approach ensures that, while the judiciary is held accountable to the public, the legitimate con- fidentiality interests of commercial litigants are fully protected. Technological Innovation and the Future of Justice As Armenia looks toward the future, the legal commu- nity is beginning to explore the implications of artificial intelligence (AI) and advanced automation in dispute resolution. While there is currently no standalone “AI Law”, the foundations for AI integration have been laid through the comprehensive digitalisation of the judici- ary. The Supreme Judicial Council is already utilising automated systems for the “random distribution” of cases among judges, which is a critical tool for pre- venting corruption and ensuring judicial impartiality. The legal profession is also experiencing a shift as law firms increasingly adopt AI-driven tools for legal research, due diligence and document review. The availability of thousands of digitised and indexed court verdicts on the judicial portal provides a rich dataset for predictive analytics, allowing lawyers to provide more accurate risk assessments for their clients. In the courtroom, the use of videoconferencing for remote hearings has become a standard practice, particularly in cases involving international witnesses or experts, significantly reducing the costs and time associated with cross-border litigation.
31 CHAMBERS.COM
Powered by FlippingBook