Abstract

The decisions and activities of legal persons have consequences in many states, some-times giving rise overseas to disputes arising out of contracts, torts. The foreign element in such cases raises a number of difficult questions related to the legal status of the subjects of these relations: whether a legal entity created under the laws of one state is recognized as such in another state where it is engaged in economic activities; the laws of which state determine the legal capacity of a foreign legal entity? - etc. The answers to these questions may be found by means of the personal statute of a legal entity (lex societatis). The personal statute of a legal entity (lex societatis) is commonly referred to as the law, determined on the basis of a conflict of laws rule, to be applied to the totality of relations related to the legal entity and complicated by a foreign element, or at least to the main part of such relations. The application of the personal statute of a legal entity is relevant in civil cases in which at least one of the parties is a foreign corporation. This statute has to be resorted to in the case of a dispute on the merits, as well as in a number of other cases: determining the legal status of the disputing parties at the stage of initiation of the case and its subsequent resolution, checking the powers of the parties' representatives, etc. The court must examine the legal status of the corporation as a party to the proceeding before deciding on the applicable law. The purpose of this article is to analyze the practice of application by Russian courts the personal statute of a legal entity in resolving a number of procedural issues related to the determination of the legal status of the disputing parties, the verification of the credentials of the parties' representatives. The article provides an analysis of the content of the mentioned conflict of law norm, which is designed to help courts in their activities. The improvement of the investment climate in the state, the attractiveness of the national jurisdiction for economic activity, the stability of the civil turnover in general depend on the effective protection of the rights and legitimate interests of participants in corporate conflicts through justice. The study of features of the judicial form of protection of violated rights and interests in the light of the foreign element is of enduring theoretical and practical importance.

Full Text
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