COURTS-JURISDICTION-FOREIGN INCORPORATION AS A COLLUSIVE ATTEMPT TO SECURE THE JURISDICTION OF FEDERAL COURTS

Authors

Abstract

We have considered in a previous note the general rules as to the citizenship of a foreign corporation for purposes of jurisdiction of the federal courts. An action by or against a corporation is regarded as an action by or against the stockholders, who for purposes of jurisdiction are conclusively presumed to be citizens of the state of incorporation, and a foreign corporation generally remains for jurisdictional purposes a corporation of the state which created it. Consequently, incorporation in another state presents itself both to domestic corporations and individuals as a means of providing the diversity of citizenship which will entitle the parties to invoke the jurisdiction of a federal court.

Recommended Citation

COURTS-JURISDICTION-FOREIGN INCORPORATION AS A COLLUSIVE ATTEMPT TO SECURE THE JURISDICTION OF FEDERAL COURTS, 28 Mich. L. Rev. 739 (1930).
Available at: https://repository.law.umich.edu/mlr/vol28/iss6/5