A Comparative Study of Processes and Challenges of Reorganization of Business Companies in Iranian Laws and Other Countries

Maintaining the continuity of companies as one of the most important players in the economy is of great importance for governments and society; thus, one of the mechanisms in the legal system of many countries to prevent the liquidation of companies is the institution of "reorganization". Although Iran's economic system has experienced the bankruptcy of many commercial companies in recent decades, so far the laws and regulations have not independently addressed the process and challenges of reorganization of bankrupt companies. The findings of this study indicate that the reorganization of a company has several processes that in most countries are mainly: demand for reorganization; Creditors' agreement; Court certification; Act under the supervision of the court and, finally, the issuance of the final verdict. In addition, although reorganization has a long history in most developed countries, in practice in these countries with challenges and obstacles such as: delays in announcing the cessation; Creditors' opposition; the inability of a commercial company is associated. Considering the necessity of this institution in Iran and the legal gaps in the Iranian legislative system, the present article examines the processes and challenges of reorganization of commercial companies in several countries with a comparative approach and using a descriptive-analytical method.