Abstract
This chapter analyses the legal framework for expropriations and measures of equivalent effect in the resources sector under international law, notwithstanding the fact that in developed constitutional systems constitutional law would also play a decisive role in determining the legality of expropriations or measures of equivalent effect. One of the reasons for the vagueness of general public international law regarding expropriation and compensation was the emergence of newly independent nations from the yoke of colonialism. Australia has concluded bilateral investment treaties (BITs) with 21 countries and is party to a further 18 free trade and similar international investment agreements (IIAs) with significant investment chapters. These treaties contain similar clauses pertaining to expropriation and compensation and are a good reflection of treaty practice around the world. The 'golden shares' created special rights, often vested in just one share held by the government, to afford special powers to the holder regarding changes to company's charter, foreign ownership or other strategic issues.