Legal Analysis of Article 107 of the Fifth Development Scheme Act of Islamic Republic of Iran: The Conditions of Forming Economic Interest Group

Our country''s legislator in 2010 by pursuing the developed countries، in the form of Article 107 of the Fifth Development Scheme Act of Islamic Republic of Iran، provided the formation ground of economic-legal institution، “Economic Interest Group”، for joint economic and trading activities. The authors، while criticizing the placement of the mentioned article and defective statute in the Fifth Scheme Act، which is a temporary act، having pointed out the history of the Economic Interest Group، the necessity for its inclusion and comparing it with similar institutions as well، have analyzed the above article merely in terms of the requirements of forming Group، as well as the European Union’s procedure regarding The economic interest groups، and have put forward their perspective along with suggestions. This institution has almost the same function of “joint venture” without legal entity. However، it could also be different from “joint venture” concerning the liability of members against third-parties. There are also differences between the mentioned institution with consortium (Companies Union). Formation of Economic Interest Group is allowed and carried out for the purposes of trading and non-profitable activities with conforming to the Islamic rules and the principles of Harm Prohibition and Monopoly Prevention. The contract formation must be written having limited duration and registered in the Companies Registration Organization. There has been no any enforcement stipulated in Article 107 for failure to registering the Economic Interest Group’s contract formation in the Companies Registration Organization.