Which law governs a lawsuit between an Australian and a Chinese corporation with respect to a contract signed in Indonesia, under which the Chinese corporation transports goods to Brazil? Which law should govern a derivative claim of a New York resident who is a shareholder in an Australian corporation against a director in this corporation who resides in Germany?
Evidently, these examples bear a central significance to the contemporary corporate world. With the advances of technology, cross-border business and commerce, and the frequent mobility of people, the world has become very much a ‘small village’. Litigation cases involve parties from different jurisdictions which litigate disputes that occurred in different places. Corporations only enhance the ‘internationality’ of contemporary litigation. They tend to be transnational in nature, targeting potential customers on a global scale and conducting business in a wide range of locations.1