Examples of Conflict of Interests in Joint Stock Companies and Solutions

Babaei, Hossein; Saei, Seyed Mohammad Hadi; Ramezani Akerdi, Habibullah

doi:10.22034/ejs.2025.461356.1824

Examples of Conflict of Interests in Joint Stock Companies and Solutions

Document Type : research

Authors

Hossein Babaei ¹

Seyed Mohammad Hadi Saei ²

Habibullah Ramezani Akerdi ³

¹ Master of Private Law, Imam Khomeini International University (RA), Qazvin, Iran

² Associate Professor of the Department of Law, Imam Khomeini International University (RA), Qazvin, Iran

³ Assistant Professor of Law Department, Imam Khomeini International University (RA), Qazvin, Iran.

10.22034/ejs.2025.461356.1824

Abstract

Background and Aims: conflict of interest has many negative effects on companies. On the other hand, it causes mistrust and uncertainty to the company's institution, as a result of which the company cannot attract small capitals. The purpose of this article is to examine examples of conflict of interests in joint stock companies and solutions.
Materials and Methods: This article is descriptive and analytical. Materials and data are also qualitative and data collection was used in collecting materials and data.
Ethical Considerations: In this article, the originality of the texts, honesty and trustworthiness are respected.
Findings: The findings showed that among the most important conflicts of interest in the rights of joint stock companies are the conflict of interests of partners with managers, the conflict of partners with third parties, and the conflict of interests between minority and majority shareholders. As an example, the activities of the and members of the board of directors in the company's transactions with unconventional rates, acquiring loans or credit from the company the company through performing activities similar to the activities of the company under management are among the most important examples of conflict of interests between shareholders.
Conclusion: The result is that in areas where there is a conflict of interest and there is a legal vacuum, laws will be enacted. pay attention to the guarantee of civil executions, including the cancellation of transactions, he should also consider the guarantee of criminal executions.

Keywords

conflict of interest

partners

third parties

majority shareholders

minority shareholders

Subjects