Procedural Requirements for Filing a Derivative Action in Iranian Law
Keywords:
: derivative claim, legal representative, minority shareholders, joint-stock company directors, CEOAbstract
A derivative action is a lawsuit brought by shareholders holding at least one-fifth of the shares of a joint-stock company, acting on behalf of the company, against directors or defaulting managers whose fault has caused damage to the company. This action is provided for in Article 276 of the Amended Bill of the Commercial Code. A question of particular importance concerns the formal and procedural requirements governing the initiation of such an action. It appears that, in response to this question, it should be stated that since the legislator has not explicitly addressed the procedural conditions for filing a derivative action in the Amended Bill of the Commercial Code, these conditions must be derived from the general principles of the Civil Procedure Code, especially the provisions relating to lawsuits initiated by legal representatives, and—by analogy—extended to derivative actions as well. The research method employed in this article is analytical and descriptive.
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Copyright (c) 1402 Hossein Papi (Author); Javad Niknejad; Mehdi Esmaili (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
