Volume 16 - Special Issue on Legal Developments
MLJ 2022, 16 - Special Issue on Legal Developments: 390-403 |
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Amirian Jahromi F, Hosseini Pouya S M, Zahedian M. The Basis of the Holding Company's Responsibility Towards its Subsidiaries in Iranian and American Law. MLJ 2022; 16 :390-403
URL: http://ijmedicallaw.ir/article-1-1642-en.html
URL: http://ijmedicallaw.ir/article-1-1642-en.html
1- Department of Law, Neyshabour Branch, Islamic Azad University, Neyshabour, Iran
2- Department of Law, Mashhad Branch, Islamic Azad University, Mashhad, Iran
2- Department of Law, Mashhad Branch, Islamic Azad University, Mashhad, Iran
Abstract:
Background and Aim: A holding company is a company that controls the activities of other companies by owning shares. Holding can also be considered as a controlling company whose main activity is buying shares of one or more other companies with the aim of managing said companies. The companies whose control is in the hands of the holding company are called subsidiaries or subsidiary companies, creating a relationship of subordination and dependence between two companies, which is often done with the aim of obtaining maximum profit, can lead to abuse in some cases.
Method: This research is of a theoretical type and the research method is descriptive-analytical and the method of collecting information is library-based and by referring to documents, books and articles.
Ethical Considerations: In this research, the principles of trustworthiness, honesty, neutrality and originality of the work have been respected.
Results: Research shows that each state in America has its own basic guidelines regarding companies and they are different from each other; At the same time, federal law has specified minimum trading standards, most of which are found in the Securities Act of 1933.
Conclusion: It seems that this definition does not make a proper distinction between holding and investment companies and determine a specific position for subsidiaries, affiliates and related companies in financial and commercial laws. Due to the lack of comprehensive and technical laws and regulations in the field of holding companies, the terms holding company and investment company are used equally, while each type should have its own regulations, the public opinion is that the holding company, is an investment company, while from the legal point of view, the structure of these two companies is different and distinct from each other.
Please cite this article as:
Amirian Jahromi F, Hosseini Pouya SM, Zahedian M. The Basis of the Holding Company's Responsibility Towards its Subsidiaries in Iranian and American Law. Medical Law Journal. 2022; 16(Special Issue on Legal Developments): e25
Method: This research is of a theoretical type and the research method is descriptive-analytical and the method of collecting information is library-based and by referring to documents, books and articles.
Ethical Considerations: In this research, the principles of trustworthiness, honesty, neutrality and originality of the work have been respected.
Results: Research shows that each state in America has its own basic guidelines regarding companies and they are different from each other; At the same time, federal law has specified minimum trading standards, most of which are found in the Securities Act of 1933.
Conclusion: It seems that this definition does not make a proper distinction between holding and investment companies and determine a specific position for subsidiaries, affiliates and related companies in financial and commercial laws. Due to the lack of comprehensive and technical laws and regulations in the field of holding companies, the terms holding company and investment company are used equally, while each type should have its own regulations, the public opinion is that the holding company, is an investment company, while from the legal point of view, the structure of these two companies is different and distinct from each other.
Please cite this article as:
Amirian Jahromi F, Hosseini Pouya SM, Zahedian M. The Basis of the Holding Company's Responsibility Towards its Subsidiaries in Iranian and American Law. Medical Law Journal. 2022; 16(Special Issue on Legal Developments): e25
Type of Study: Original Article |
Received: 2023/04/30 | Accepted: 2023/07/8
Received: 2023/04/30 | Accepted: 2023/07/8
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