internal affairs doctrine

Conflict of laws. The rule that in disputes involving a corporation and its relationships with its shareholders, directors, officers, or agents, the law to be applied is the law of the state of incorporation.

• This doctrine applies in the majority of states. In a few states, notably California and New York, foreign corporations must meet state-law requirements in specified circumstances. [Cases: Corporations 640. C.J.S. Corporations §§ 893, 900.]


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