Analysis of Legal Nature and Position of Joint-Stock Cooperative Bank

Joint-stock cooperative company is not recognized in Commercial Code of Iran and the amendment bill of the Commercial Code adopted in 1968. This business entity has a unique description because of both being cooperative and having joint stock. It is a jointstock company that is chartered based on Commercial Code of Iran, amendment bill of the Commercial Code adopted in 1968, and Principle 44 of the Constitution. Jointstock cooperative QarzolHasaneh Bank is not involved with commercial activity; the maximum share of each real shareholder is equal to half of company rsquo;s capital at the time of establishment and during company rsquo;s function. Ministry of Cooperatives and the Central Bank monitor activities of jointstock cooperative companies. Jointstock cooperative bank like jointstock cooperative company should be subjected to amended bill of the Commercial Code adopted in 1968, enforcement Act of general policies of Principle 44 of the Constitution. Formation of jointstock cooperative bank is not possible in practice unless violating the cooperatives regulations and doing activities that are out of jurisdiction of cooperative companies. It should be noted that cooperative banks are considered as nongovernmental banks, therefore they must obey regulations expressed in rules and regulations of nongovernmental banks.