The International Legal Personality of Multinational Enterprises: Treaty, Custom and the Governance Gap

Robin F. Hansen, University of Saskatchewan - College of Law

Abstract

This article argues that multinational enterprises (MNEs) have state-granted international legal personality. MNEs are now granted substantive and procedural rights under international investment treaties, ratified by 162 states. Under international investment law, MNEs are empowered as centrally-controlled agents, permitted to launch indirect investment claims from various points along their ownership networks in investment arbitration. As entities with legal personality, MNEs hold the customary duties of private persons under international law, including the duty not to commit slavery, among others. The article concludes by discussing the relevance of MNE legal personality to the amelioration of the MNE governance gap.

Erratum

The footnote on page 4 should read as follows:

See Annex II. 162 States are parties to BITs in force which contain state consent to arbitrate investor claims. Another 10 states (for a total of 172) have signed BITs with investor-state arbitration which are not in force. This is based primarily on a compilations of data using UNCTAD, Investment Treaty Database. UNCTAD, Country Specific Lists of BITs,

http://www.unctad.org/Templates/Page.asp?intItemID=2344&=1