State responsibility - Expropriation of foreign-owned property
9 important questions on State responsibility - Expropriation of foreign-owned property
Why is 'expropriation of foreign-owned property' treated seperately?
What are the conditions of lawful expropriation?
- It must be based on grounds of public policy, security or in the national interest.
- 'Appropriate' compensation must be paid.
- It must not be discriminatory.
What is the effect of 'the international minimum effect' being the standard of compensation?
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What should the standard of compensation be according to developing states?
Which measure of compensation is adopted by industrialised nations?
Why do developing states object tot the 'Hull formula'?
In which cases may expropriation be regarded as unlawful?
- discriminatory
- in violation of a treaty obligation
- when there's no compensation up to the international standard.
What happens when a states claims that the expropriation was unlawful?
What are the ways of calculating the compensation? (5)
- The discount cash flow (DCF) approach
- The net book value method
- The 'going concern' method
- The value of the asset should be its value pre-expropriation
- Lump sum settlement
The question on the page originate from the summary of the following study material:
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