State liability for the conduct of its entities in international investment arbitration Online publication date: Sat, 20-Sep-2014
by Assaduzzaman
International Journal of Private Law (IJPL), Vol. 5, No. 3, 2012
Abstract: Often states raise separate legal personality of state entities as a defence against the claim brought by the foreign investors for the liquidated debt of state entities in investment arbitration. These entities are created by the state which may have separate legal personality but they lack absolute autonomy in relation to substantial structural and functional government control. This paper examines the fundamental relationship of direct and indirect liability of states for the breach of state entities. It is necessary to adopt a uniform set of rules for investment arbitration in addressing issues relating to state liability for the conduct of state entities.
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