prerequisites for improving the Iran's corporate governance system, with an emphasis on World Bank's protecting minority investors index

Corporate governance, is a response to agancy problem. Agancy problem is result of separation of ownership and control. Different countries in their laws and regulation, use different method to overcome this problem. World bank’s protecting minority investors, evaluates and compares different legal system in this subject. Before 2015¡ the only components of the disclosure¡ director liability and ease of judicial action against the directors were measured. In 2015¡ new components of shareholder's rights¡ the strength of governance structure and corporate transparency of the company were added to this index.
The main question of this study is: What legal reforms needed to improve Iran’s corporate governance system using minority investors index. The answers will be given by using library resources and study the rules and regulations governing this area. The results showed that the existing strategies for improving the status of laws and regulations could be categorized in three strategies. The first is reforming the respondent’s interpretation of laws and regulations. The second approach is amending regulations governing listed companies. The last strategy¡ is amending the laws governing the matter (for example commercial code, civil procedure code and etc) by preparation and adoption of the "corporate governance"¡ which is more efficient. Therefore¡ this study suggest parliament to pass a law to improve Iran’s corporate governance system.