company debts and liability of partners or shareholders under Iranian law
The extent of liability of individuals for the debts of the company depends on the type of company and the origin of the obligation. Limited liability companies, Joint stock companies and partnerships do not have the same effects on partners and personal guarantees or obligations can also change the result.
Request a consultationcompany debts and liability of partners or shareholders under Iranian law
The extent of liability of individuals for the debts of the company depends on the type of company and the origin of the obligation. Limited liability companies, Joint stock companies and partnerships do not have the same effects on partners and personal guarantees or obligations can also change the result.
Important aspects of this matter
Point 1
Company form and the time the debt arose
Point 2
The contract, check, guarantee or document that is the source of the obligation
Point 3
The signatories’ capacities and the limits of their authority
Point 4
Existence of personal guarantee, Joint and several liability or special legal basis
Legal points and course of action
The legal personality of the company means that the company's obligations are generally pursued from the company's own assets,, but the type of company and the behavior or commitment of individuals can create exceptions. Therefore, the title "partner" or "managing director" alone is not sufficient to determine liability.
In each case, the latest company registration status, internal documents and actual events must be matched. The similarity of the titles of the two cases does not mean that the demands, of the parties to the dispute or their legal outcome are the same.
Related topics
dissolution and liquidation of an Iranian company
Termination of the company's activity, Decision or ruling dissolution, Appointment of the manager liquidation, Debts and division of the remaining assets.
corporate bankruptcy under Iranian law
Suspension of debt payment, Effects of the ruling bankruptcy, The status of managers, creditors and its difference from the normal dissolution.
partner or shareholder dispute in an Iranian company
Disputes about management, Profits, Voting rights, Access to documents, Assembly decisions and implementation of partners' agreements.
Registration of company changes and meeting minutes
Minutes of meetings and board of directors, Change of directors, Capital, Address, Subject and authorized signatories.
Relevant legal sources
Iranian Commercial Code («قانون تجارت»)
Bill amending part of Iranian Commercial Code («قانون تجارت»)
Iranian Civil Code («قانون مدنی»)
This list, shows the main provisions related to the subject of the page. The governing law and subsequent amendments must be adapted to the time of occurrence, of the subject and the situation of each case.
The official text and latest amendments of the laws are available at National Information Database of Laws and Regulations of the Country is available to view.
Frequently asked questions
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