Denial-of-Benefits-Klauseln in internationalen Investitionsschutzverträgen

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Abstract Denial of benefits clauses give states the right to deny investment treaty protection to companies that are mere shells. These clauses thus counteract the so-called practice of treaty shopping. In recent years, the clauses have been integrated in more and more investment treaties and have increasingly come into the focus of investment arbitration tribunals. A number of problems arise when applying denial of benefits clauses in practice. In particular, it needs to be determined what a shell company is and whether states may exercise their rights under the clauses only with effect for the future or also with effect for the past. The study analyses these and other questions in the light of international investment jurisprudence and other sources of public international law and derives specific solutions. The study is of particular interest for practitioners in the field of international investment law. .