Re Law on the Nationalization of French Banks

Abstract

Expropriation — Public interest — Extent of State’s right to nationalize — Property of nationals — Requirement of public necessity — Discrimination — Measures directed against particular companies — Requirement of equality of treatment — Extraterritorial effect — Nationalization of companies with their seats in the nationalizing State — Effect on assets situated abroad — Compensation — Requirement of just and prior compensation — Principles of assessment — Valuation of expropriated property — Valuation based partly on value of shares during reference period and partly on companies’ assets and profits — Appropriate length of reference period — Whether adjustment should be made to take account of changes after the end of the reference period — Allowance for inflation — Differences in the treatment of shares in quoted and unquoted companies — Nationalization of major French banks, 1981–2 — Whether compatible with French Constitution — The law of France