Privatization Policy Supported by the Supreme Leader Tuesday, 5 September 2006
Privatization Policy Supported by the Supreme Leader
Major policies and strategies mentioned in Para C of Article 44 of the Constitution clarified by the Iranian Supreme Leader are as follows:
Changing the government role from direct management in firms to policymaking, leadership and supervisory roles.
Strengthening private & cooperative sectors in economy and supporting them to compete domestic commodities in international markets.
Preparing domestic firms in order to a wisely interact with global trading regulations on a gradual and accurate process.
Developing human resources on the basis of ground knowledge and expertise.
Developing and expanding national standards and adjusting quality assessment systems with international standards.
The direction of privatization suggested by the Expediency Council based on Para C of Article 44 of the Constitution, in line with increasing efficiency, compatibility, and expanding public ownership is hereby officially ordered.
Ceding 80% of the shares of public firms to cooperative companies of the private sector, and non-governmental entities will be authorized only based on the following conditions:
State-owned firms active in large mines, big and basic industries (including oil and gas major by-products industries), except National Iranian Oil Company (NIOC) and oil and gas excavation and production companies.
State-owned banks except Central Bank of Iran (CBI), Bank Melli Iran (National Bank of Iran), Bank Sepah, Bank of Industries and Mines, Bank Keshavarzi (Agricultural Bank), Bank Maskan (Housing Bank), and Export Development Bank of Iran.
State-owned insurance companies, except Central Insurance and Iran Insurance Company.
Aviation and Marine companies except Iran Aviation Organization and Shipping and Ports Organization.
Power transmitting firms, except main electricity network.
Postal and telecommunication firms, except basic telecommunication networks, frequency transfer affairs, main testing and transaction networks, and basic postal services distribution management.
Industries relating to the armed forces, except defensive and necessary security manufacturers recognized by the Commander in Chief.
Pricing will be done by the Tehran Stock Exchange
In order to absorb and encourage public and prevent inside information, public announcement with great information dissemination should be done.
In order to gain an appropriate return in the shares subject to cede, pricing of the products and the proper management should be done based on the Commercial Code.
Ceding the shares of companies subject to this plan which are in the form of basic specialized companies and its subsidiaries, should be done by a multilateral investigation.
In order to improve the management and increase efficiency of the companies subject to cede within the management potential of the government, necessary actions should be taken to absorb experienced, professional and efficient managers.
Only 5% of the shares of the companies subject to cede should be sold to its managers and employees based on installment.
Considering the overall policies of Article 44 of the Constitution and changing in the corporate governance, the government should edit and implement its new role in policymaking, leadership and supervision over national economy.
Allocation of certain percentage of the ceding sources to the modern technology sectors in line with corporate sovereignty is authorized.