Nationality of Group of Companies in Law of France, EU and Iran

Abstract

The special position of group of companies in international investment is undeniable. This notable position and their deep influence in international investment is such that group of companies plays a role equal to that of states in foreign investment. One of the most challenging discussions around group of companies is their nationality. There are serious disagreements as to whether the group of companies has legal personality and, consequently, nationality. Recognition or non-recognition of the legal personality and nationality of these groups has important and diverse legal implications that need to be examined carefully. These include the rights, obligations and responsibilities of the member companies vis-a-vis the parent company as well as the host country of the subsidiaries. Examining the law of Iran and France it is understood that group of companies lacks legal personality and nationality. In EU there is no unified regulations in this regard, but the case law of EU has taken a double approach toward the subject. This article introduces a pervasive framework for the assessment of the nationality of the group of companies and considers the controversial situation of some well-known company.