State-Entities in International Investment Arbitration

Crucial findings of this research is whether or to what extend the State shall be liable for the commercial conduct of its entities? This leads to the critical arguments to establish in the first place whether the State is a party to the investment agreements of its separate legal entities with foreign investors. To respond this, findings of this research lead to the point that has been highlighted in relation to the true separation of these state entities from the government. It is that the significance of structural and functional control by the governmental over the habitual affairs of these entities. For this purposes two significant reasons are taken into consideration. First, whether the government officials or members of the cabinet preside as the head of the corporations or entities? Second, whether they administer the daily affairs of the entities such as participating in the negotiation and decision making process while entering into the agreement with foreign investors. If that is satisfied, then the requirement for a State to be a party to the investment agreement of its entities is considered fulfilled.