Protection of shareholders' rights in the settlement of international investment disputes

This Master dissertation is aimed at the analysis of the shareholders’ legal standing and protection of their rights in international investment arbitration (IIA). The Master dissertation consists of an introduction, four chapters, fifteen paragraphs, a conclusion, a bibliography. Chapter I elaborates the notion of shareholding as an investment and legal basis for shareholders’ claims under international investment treaties (IIT), investment case law, customary international law. Chapter II studies the legal standing of different categories of shareholders and intermediate corporations in IIA. Chapter III contains analysis of problems arising from eligibility of shareholders’ direct claims in IIA. Chapter IV deals with new developments in shareholders’ claims in IIA. The research leads to the following conclusions: firstly, despite that under customary international law shareholders are not entitled to claim for protection of direct rights, such protection is provided under IIT and the specific rules elaborated within the investment case law; secondly, international legal instruments gives guarantees to investors both for direct and indirect damages caused to them by host States; thirdly, most of IIT do not limit shareholders right for claims regardless of their characteristics. The analysis of the problems arising from eligibility of shareholders’ direct claims leads to the following concerns: firstly, the problem of multiplicity claims and endless chain of proceedings relating to the same parties, object of dispute, applicable treaties; secondly, the problem of the double recovery arising when shareholders with ownership at different levels are awarded reparations on the same legal/factual grounds and unjust enrichment; thirdly, the conflicting/competing litigation procedures in case when shareholders and company by itself submit claims based on the same legal/factual grounds.