{"id":3074,"date":"2022-05-19T05:42:46","date_gmt":"2022-05-19T05:42:46","guid":{"rendered":"https:\/\/momstime.org\/en\/?p=3074"},"modified":"2023-05-07T07:17:31","modified_gmt":"2023-05-07T07:17:31","slug":"seizure-of-share-for-dowry-in-iran","status":"publish","type":"post","link":"https:\/\/karimilawfirm.com\/en\/publications\/seizure-of-share-for-dowry-in-iran\/","title":{"rendered":"Seizure of Shares For Dowry in Iran"},"content":{"rendered":"

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Introduction [1]<\/a><\/strong><\/h2>\n

This paper starts by explaining the status of Dowry in Iran. Secondly, answers the question that whether a share in a company can be lawfully seized for Dowry. In order to answer the question, the paper studies three types of shares, including private joint-stock, public joint-stock, and limited liability companies. In the end, by conducting comparisons between these three types of companies, reaches a conclusion.<\/p>\n

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Dowry & Company Share<\/strong><\/h2>\n

According to the Iranian legal system, Dowry is the property that is given to a woman in her marriage and is considered one of the husband\u2019s preferred debts.[2]<\/a> In a situation in which the husband\u2019s cash property is not enough, we face the issue of whether can a share in a company be possessed for Dowry. In the following, we will answer this question with regard to the general procedure and three types of companies.<\/p>\n

A share in a company has proprietary worth and is transferable; meaning that as the owner herself can buy, sell or trade it, the court\u2019s enforcement of judgments can confiscate and sell it for the sake of creditors who have been ordered by the court.[3]<\/a> If a husband does not pay the dowry and has any shares in a company, the court can pass a judgment to seize his shares in that company. In fact, his shares are seized by the court and will be sold with its order or transferred to whom the court decides if he does not pay the Dowry. Also, the seizure of shares for Dowry and its sale can be done by the writ of execution issued by the registration office and it does not necessarily need the court\u2019s verdict.<\/p>\n

Before seizing the movable property,[4]<\/a>\u00a0the judge (executive officer) must prepare a form that includes a complete description of the property, such as type – number – weight – size, etc., and in the case of stocks and securities, its type, number and the nominal amount and each case, the specifications and features that fully represent the property must be written.<\/p>\n

1)\u00a0Public joint-stock companies<\/u>: In public joint-stock companies, authorities will notify the Company Registration Department, the company\u2019s CEO (chief executive officer), and the Securities and Exchange Organization to prevent the transmission of shares. In this case, sales of shares are done by the Securities and Exchange Organization, and the Dowry is paid thereafter.<\/p>\n

2)\u00a0Private joint-stock companies<\/u>: In this type of company, every action needs to be informed to the CEO and Company Registration Office in order to stop share transmission and prevent the husband from the runaway of paying the Dowry. [5]<\/a> In order to sell the seized shares, there should be an expertise initially and then sold at an auction. In private joint-stock companies, shares are sold at an auction, and the wife\u2019s portion will be paid after the expertise.<\/p>\n

The seizure of the shares of individuals in a private joint-stock company does not in itself deprive the shareholder of the right to vote in the relevant company or the meetings of the assemblies and the board of directors.[6]<\/a><\/p>\n

3) Limited liability companies<\/u>: to the complicity of shares, the situation is a bit different. In this type of company, every shareholder is liable for the debts of the company only as the amount of her\/his first capital. In other words, the juristic personality of the company is independent of its shareholder\u2019s personality, and as a result, the creditors of the shareholder cannot claim their money from the corporate asset. [7]<\/a>\u00a0However, the creditor (or in this case wife) can take legal action against the debtor\u2019s share in the company and claim its seizure from the court.<\/p>\n

For instance, the court in an analogous judgment has stated: \u201cThe CEO of the company is sentenced to pay for his wife’s Dowry. The issuance of the request for the execution of the legal rulings of the judiciary will be submitted in the sense that the CEO’s share of the company will be confiscated.\u201d[8]<\/a><\/p>\n

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Conclusion<\/strong><\/h2>\n

The answer to the question that a share in a company can be lawfully seized for the Dowry seems positive.<\/p>\n

However, the duration and success of the process depend on each particular type of company. The paper concludes that in a limited liability company seizure of Dowry is more complicated and challenging in comparison to the joint-stock companies.<\/p>\n

Hence, due to the complication of the regulations about the seizure of the shares for the Dowry and its long procedure, hiring an expert experienced lawyer would accelerate the process. Qualified lawyers of Karimi and associates law firm are ready for your legal services.<\/p>\n

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Footnotes<\/strong><\/h2>\n

[1]<\/a> The original legal opinion of the publication has been provided by Ms. Aida Shahmardi.<\/p>\n

[2]<\/a>\u00a0Law of enforcement of civil judgments, Article 148(3).<\/p>\n

[3]<\/a>\u00a0Bill amending certain parts of the Commercial Code, Article 24.<\/p>\n

[4]<\/a>\u00a0Movable Property is called Personal Property in other legal systems, this is a property that can be moved from one location to another.<\/p>\n

[5]<\/a>Advisory Opinion of General Legal Department of Judiciary No. 7\/93\/57 \u2013 9\/4\/2014<\/p>\n

[6]<\/a>\u00a0Advisory Opinion of General Legal Department of Judiciary No. 2190\/93\/7 – 7\/12\/2014<\/p>\n

[7]<\/a> Commercial Code, articles 129, 159, 189<\/p>\n

[8]<\/a>\u00a0Advisory Opinion of General Legal Department of Judiciary No. 7\/93\/2764 \u2013 28\/1\/2015<\/p>\n

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References\u00a0<\/strong><\/h2>\n