Duties of Directors under the Iranian Law: A Rigorous Review in Comparison with Other Jurisdictions
Abstract
Directors' duties establish legally enforceable standards to ensure that directors act in their company's best interests. As individuals, directors may not always act perfectly, but they officially represent the company and must adhere to their responsibilities. Effective prosecution and clear communication about the legal implications of non-compliance are essential. To avoid breaching their duties, directors must understand their initial obligations. These essential responsibilities, known as principles, assure shareholders that their investments are managed by capable individuals. A director's role as a manager of significant assets requires adherence to reasonable and proper company operation standards. This study compares the duties of directors under Iranian law with those of other jurisdictions including the UK, Australia, and Malaysia, and provides key recommendations for reform at instances where the Iranian Company laws may be lacking or less effective.
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