Journal of Legal Research

Journal of Legal Research

A review of Article 172 of the English Companies Act 2006 and the feasibility of its application in Iranian law

Document Type : Original Article

Authors
1 Professor, Department of Private Law, Faculty of Law and Political Science, Mazandaran University, Babolsar, Iran.
2 PhD student in private law, Faculty of Law and Political Science, Mazandaran University, Babolsar, Iran.
3 Assistant Professor, Department of Private Law, Faculty of Law and Political Science, Mazandaran University, Babolsar, Iran.
Abstract
The need to comply with the expediency of Directors in the management of company affairs is one of the important topics and worthy of attention in different legal systems, which has not been thoroughly and comprehensively examined in Iran's legal system.One of the important challenges in this regard is the scope of compliance of these materials by Directors which in this research is investigated in a comparative way and by relying on the analytical descriptive method in English law.Finally, it was concluded that;Directors of commercial companies must act in a way that they think will promote the success of the company in good faith for the benefit of all its members, and in order to do this in the Directing of the company, in addition to respecting the interests of the shareholders and the company itself, they must also respect the interests of other third parties that including employees, customers, suppliers, creditors,environment and society should also be taken into consideration. Compliance with these matters helps to promote social, environmental and governance goals and has a direct relationship with the corporate culture, which will ultimately lead to the promotion of the company's success.Therefore, a detailed investigation and the necessity of drafting and establishing comprehensive laws related to the necessity of complying with the expediency of managers in the management of company affairs and the detailed explanation of the scope and examples of this importance and the allocation of an independent title for it in the commercial law strongly felt.
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