International Law: Multinational companies may lack personality under general international law; how

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International Law: Multinational companies may lack personality under general international law; how

Multinational companies maybe described as 'enterprises which own or control production or service facilities outside the country in which they are based14.' Such companies are usually privately owned, and have developed to possess a substantial degree of international economic and political power, through its vast resources, which are above that of many states.

Despite such power and global activities, which include entering into agreements such as concessions, with states, traditionally, such companies are not persons under general international law, where are only states are regarded as subjects15. Historically the socialist and developing states have been seen to oppose any recognition of multinationals. The socialist states were seen to oppose such entities on political and ideological grounds, whilst the developing states were weary of the power of multinationals, fearing exploitation.

However, with the fall of communism in USSR and eastern Europe, and communist states such as China entering into agreements with multinationals16, opposition on ideological grounds has somewhat diminished. Whilst the need for foreign investment has led to developing states entering into agreements with multinationals, regardless of their fears. This indicates a de facto recognition