Developments in the Legal Standing of Shareholders and Holding Corporations in Investor-State Dispute
26(1) ICSID Review-Foreign Investment Law Journal, 2011, p. 34-75
43 Pages Posted: 4 Mar 2014
Date Written: March 3, 2010
The focus of this paper is to systematically analyze the legal standing of shareholders before arbitral tribunals under modern investment treaties. We will examine the legal standing of different categories of shareholders, including “minority” and “indirect” shareholders, as well as the controversial issue of the standing of intermediate corporations (also generally known as “holding,” “shell” or “mailbox” corporations) through which international investments are often conducted. One particularly controversial issue to be addressed in this article is the distinction between cases of illegitimate and legitimate “treaty shopping.” Finally, we will examine some of the concerns that capital-importing States have raised as a result of these developments, including the issue of remoteness of claims by minority and indirect shareholders.
Keywords: shareholders, shell corporation, ICSID, investor-State arbitration, treaty shopping
JEL Classification: K33
Suggested Citation: Suggested Citation