Reflective Loss in International Corporate and Investment Law

Historically, claims for reflective loss used to be a taboo in corporate law. However, recently shareholders were given a right by various international agreements to claim for reflective loss. The rise of the alternative approach to reflective loss claims makes it necessary to rethink the approach of corporate law to the issue of reflective loss. This study draws attention to reflective loss claims that could potentially become a new instrument of shareholders rights protection. Chapter 1 of the paper is an overview of the development of the reflective loss concept in corporate law. Chapter 2 is dedicated to the analysis of international investment arbitration practice on the matter of reflective loss. Finally, in Chapter 3 the author of the paper will introduce the discussion on the policy and law matters of reflective loss in contemporary law. The author summarizes that the approach to reflective loss developed in investment law seems to be the most appropriate from the perspective of policy of law. Furthermore, the author points out that due to the complicated economic context of the reflective loss problem the universal-rule approach should be abandoned.