1. SIMAD UNIVERSITY
Keyd abdirahman salaad

2. Conciliation
Conciliation is a process in which a third party meets with the disputants separately in an effort to establish mutual understanding of the underlying causes of the dispute and thereby promote settlement in a friendly, un antagonistic manner by using a non binding procedure.

3. CONCILIATION
The act provides a legal frame to encourage voluntary compromise/conciliation of disputes arising out of legal relationship connected with commercial disputes
The party initiating conciliation invites in writing the other party identifying the subject of the dispute.
The conciliation proceedings shall commence when the other party accepts in writing the invitation to conciliate. 
If the other party rejects or does not reply within 30 days/within time limit stated in the offer there will be no conciliation proceedings

4. Conciliators
Number: can be one or if parties then two or three (that suggests that it cannot be more than three)
Appointment:
One – By mutual agreement of parties.
Two– One each, by each party.
Three– One by each party and 3rd by mutual agreement.

5. Appointment of conciliators
Conciliators shall be appointed by the parties to the dispute
It shall be a sole conciliator or a panel of conciliators of 1 to 3
In case of 3 one shall be identified as presiding person.
Institutions may also be appointed as conciliators

6. Statements-Before, During & After the proceedings
Before proceedings conciliator shall request each party to submit a statement explaining nature of dispute.
The statement must clearly specify and state the conciliators position and the facts and grounds in support thereof.
During the proceedings the conciliators can call for further information from the parties and calls for cooperation by parties.

7. Settlement
If the parties agree on a settlement they may draw up and sign a written settlement agreement.
When settlement is signed by the parties it is authenticated by the conciliator and is binding on the parties.
This settlement agreement will have the same status as of the arbitral award by mutual settlement.

8. Proceedings
The conciliator shall request to the parties to give the dispute, points of issues and their plea in writing. Thereafter he may request them to give more details/information as and when required.
Conciliator is not bound by civil procedure Court/Evidence Act etc.
He is guided by the trade practices, fairness, natural justice, rights and obligations of the parties.
He shall assist the parties in an independent /impartial manner to reach a amicable settlement

9. Proceedings He may call suggestions for settlement from each party.
When it appears to the conciliators that element of settlement exists, he will formulate draft terms of settlement and send it to each party for their observation.
On receipt of their observation, he reformulates the terms for possible settlements.
Parties shall not resort to arbitral or judicial proceedings when subject matter is under conciliation

10. Cost
Fee for conciliation, cost of administration, fee payable to expert opinion etc. are to be borne by the parties equally unless parties agree to pay in other ratio.
Conciliator may also be asked to deposit the probable cost in advance in equal share by the parties concerned

11. Settlement Agreement- The Outcome of Conciliation
Where it appears to the conciliator that there exists elements of settlement he shall formulate terms of settlement-
Observations to be submitted by parties on the draft formulation.
Conciliator to reformulate the agreement.
After reaching to an agreement, a formal settlement shall be drawn up and signed by the parties.
The settlement agreement shall now be final and binding on all the parties concerned.
Conciliation proceeding terminate
On signing of the agreement
Written declaration by conciliator
Written declaration by parties
Written declaration between parties, Inter-se.

12. Conciliation
End