Section 7(2)(b) of the International Arbitration Act 1974 (Cth) does not require a party seeking a stay and referral to arbitration to demonstrate that the matter has reasonable prospects of success or is 'sustainable'; there is no minimum merits threshold. The Rinehart v Welker sustainability test does not apply to applications under s 7(2)(b). As a general proposition, matters involving the Corporations Act 2001 (Cth), including claims for breach of directors' duties, are capable of settlement by arbitration. An arbitration clause in a shareholders' agreement does not extend to disputes arising under a separate employment agreement between the same parties, absent express words or surrounding circumstances indicating such an intention.
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