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.