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The Barcelona Traction

The Barcelona Traction Case involved a Canadian company that operated utilities in Spain. After the company went bankrupt in Spain, the Belgian government tried to bring a case to the ICJ on behalf of Belgian shareholders. However, the ICJ ruled that Belgium did not have standing since the company was incorporated in Canada. While most shareholders were Belgian, only the country of incorporation (Canada) could represent the company internationally. This case established that corporations have nationality rights similar to individuals under international law.

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7K views1 page

The Barcelona Traction

The Barcelona Traction Case involved a Canadian company that operated utilities in Spain. After the company went bankrupt in Spain, the Belgian government tried to bring a case to the ICJ on behalf of Belgian shareholders. However, the ICJ ruled that Belgium did not have standing since the company was incorporated in Canada. While most shareholders were Belgian, only the country of incorporation (Canada) could represent the company internationally. This case established that corporations have nationality rights similar to individuals under international law.

Uploaded by

crlstinaaa
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as TXT, PDF, TXT or read online on Scribd
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Individuals as objects of Int'l Law

Case: The Barcelona Traction Case (1970; ICJ)

Facts: Barcelona Traction was a corporation that controlled light and power
utilities in Spain and was incorporated in Toronto, (Canada). In 1948, there was
an adjudication in bankruptcy in Spain of Barcelona Traction. Its object was to
seek reparation for damage alleged by Belgium to have been sustained by Belgian
nationals, shareholders in the company. The Belgian Government, contended that
after the First World War Barcelona Traction share capital came to be very largely
held by alleged Belgian nationals, but the Spanish Government, maintained that the
Belgian nationality of the shareholders was not proven.

Issue: Whether Belgium can bring this case in the ICJ. - No.

Holding: Belgium's claim is rejected.

Reasoning: The Belgian government lacked the standing to exercise diplomatic


protection of Belgian shareholders in a Canadian company with respect to measures
taken against that company in Spain. The court ruled on the side of the Spanish,
holding that only the nationality of the corporation (the Canadians) can sue.

The case is important as it demonstrates how the concept of diplomatic protection


under international law can apply equally to corporations as to individuals.

Notes

• Facts:
○ Incorporated in Canada, Belgians hold majority of shares
○ Belgian gov't say they own the shares
○ Business bankrupted in Spain
○ Issue settled without Belgians involved, and Belgian gov't seeks
reparation
• The connection of the company with Belgium very strong, but court still decided
that Belgium gov't cannot submit claims on behalf of its citizens.

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