Upgrade your account to a Community Supporter account and remove most of the site ads.

Reply to thread

Message: <blockquote data-quote="bmcdaniel" data-source="post: 8892011" data-attributes="member: 1772">I'm not sure what kind of example you are asking for, at least in part because (as mentioned in my post) I agree that US litigation tends to be more procedural than non-US litigation, so I think we are in agreement there.Where I would differ is spreading that generalization about litigation to "the law" generally. In my own practice of investment management, the US has many, many rules that give discretion to regulators to take action on a "know it when I see it basis." For example, Section 48 of the Investment Company Act states "It shall be unlawful for any person, directly or indirectly, to cause to be done any act or thing through or by means of any other person which it would be unlawful for such person to do under the provisions of this title or any rule, regulation, or order thereunder." In other words, you cannot comply with the Act merely by technical, formal compliance; you must actually comply with the intent of the Act. I don't believe there is any similar rule (and certainly practitioners don't act like there is any such rule) in the regulation of investment vehicles in the UK and elsewhere.A second example: Delaware partnership law includes an unwaiveable obligation for the partners to act in "good faith" to each other, i.e. to comply with the spirit of the agreement, not merely its technical expression. No such obligatory requirement exists in the partnership law of England and Wales.A third example: Foreign investment in the United States is controlled by the Committee on Foreign Investment in the United States, aka CFIUS. CFIUS is granted very broad discretionary powers to deny foreign investments, or require foreign investors to dis-invest. This is markedly different from rules governing foreign investments in other jurisdictions (UK, Japan, Australia, Taiwan) which give investors rules to follow, and if an investor follows the rules, then their foreign investment is safe.</blockquote>

Verification