Question

You are General Counsel of My Own, Inc., a major car manufacturing company. Recently, you have been carefully watching the increasing violence and growing economic crises brewing in an area in South America near the location of a subsidiary owned by your US company. Inflation has risen 1600% and many companies have had to closed their doors, resulting in the loss of thousands of jobs. Gas and oil, which for years has been a staple of income for the country has all but ceased to be extracted as an important gross national product.. There is a serious shortage of food and medicine. The public is taking to the streets and clashing with the authorities. ​

My Own Inc. operates a major facility in the region and there are rumors regarding the government plans to seize the properties of foreign companies like yours. Discuss what your options are and any rights you may have to protect your company from loss. What authority if any does the government have regarding your property?

Answer 1

I have the option of selling my company to a local business at a price which will reduce my losses. Because the business can be taken over by the government, it is better to reduce the percentage of loss by acting smart. Secondly, I can have a discussion with the government on how my company can help the country to boost its GDP.

Although I have the right to protect my company from getting seized, I will be unable to move against the government once it seizes my property. The government does not have a legal authority because the land is either purchased or leased. Even if the government seizes my company, they will be doing it illegally and illegitimately.

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