Jurisprudence

Jurisprudence

Investigating the voting rights of the purchased shares of the public joint-stock company, by the affiliated company in the judicial procedure

Document Type : Original Article

Author
Judge, PhD in Private Law, Faculty of Administrative Sciences and Economics, University of Isfahan, Isfahan, Iran
Abstract
The purchase of company shares by the same joint-stock company is prohibited in general according to Article 198 of the amendment bill of a part of the Trade Law approved in 2002 set aside restrictions in public companies and considered it correct to buy a part of the shares offered by the company admitted to the stock exchange or over-the-counter markets, but denied the right to vote in the assemblies from these shares, this restriction caused some companies to fall into the trap and buy their shares by subsidiaries or affiliated companies in order to have the right to vote in the assemblies.

This research aims to investigate the procedure of the courts in dealing with voting rights, the shares purchased by the parent company by the subsidiary company, and studying the possibility of denying the repurchased shares in the assemblies. With the reviewed documents, the conclusion was reached that the courts, in the silence of the law, prevent the voting of the aforementioned shares in general meetings, whether ordinary or extraordinary.
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Volume 1, Issue 2 - Serial Number 2
September 2025
Pages 239-260

  • Receive Date 18 February 2025
  • Revise Date 23 March 2025
  • Accept Date 14 July 2025