Category: Etc

Settlement of Disputes

The legal system provides a necessary structure for the resolution of many disputes. However, some disputants will not reach agreement through a collaborative processes.

The most common form of judicial dispute resolution is litigation. Litigation is initiated when one party files suit against another.

Some use the term dispute resolution to refer only to alternative dispute resolution (ADR), that is, extrajudicial processes such as arbitration, collaborative law, and mediation used to resolve conflict and potential conflict between and among individuals, business entities, governmental agencies, and (in the public international law context) states.

ADR generally depends on agreement by the parties to use ADR processes, either before or after a dispute has arisen. ADR has experienced steadily increasing acceptance and utilization because of a perception of greater flexibility, costs below those of traditional litigation, and speedy resolution of disputes, among other perceived advantages. However, some have criticized these methods as taking away the right to seek redress of grievances in the courts, suggesting that extrajudicial dispute resolution may not offer the fairest way for parties not in an equal bargaining relationship, for example in a dispute between a consumer and a large corporation. In addition, in some circumstances, arbitration and other ADR processes may become as expensive as litigation or more so.

Iran Iran we do see a growing tendency to seek redress in agreeing on arbitration procedures and most contracts do include such a clause as the “dispute settlement clause”.

Liquidation

After dissolution of companies and establishments, the liquidation process should progress accurately and swiftly in accordance with the relevant regulations such as the stipulations of the Commercial Code of Iran, Direct Taxation Act, Social Security and Labor Laws, for settling liabilities, terminating the service of employees, and resolving the problems pertaining to tax, labor and social security.

In light of the aforesaid, liquidation should be performed by the firms with sufficient experience to undertake and manage the task of liquidating Iranian and foreign companies.

 

Investment

In finance, investment is the purchase of an asset or item with the hope that it will generate income or appreciate in the future and be sold at the higher price.

It generally does not include deposits with a bank or similar institution. The term investment is usually used when referring to a long-term outlook. This is the opposite of trading or speculation, which are short-term practices involving a much higher degree of risk.

Generally there are different ways a foreign investor can invest in Iran. The three main schemes are as follows:

– Investment under the Foreign Investment Promotion and Protection Act (FIPPA)

– Investment in the Iranian mainland without the protection of FIPPA

– Investment in or via Free Trade Zones