Company Management of Pension Funds in the Social Security System of Iran

Abstract

Pension funds for maintaining the balance of resources and expenditure invest in different ways; one of the most common practices is owning companies’ stocks. The tendency of many pension funds to this type of investment have led to the management of companies. Management of companies by pension funds (in the sense of having a stock management) as an emerging issue in the legal literature of our country has faced different regulatory policies; some are limiting or prohibiting and others are prescribing. Even though the legislator's last determination was to ban the company management of Iran's pension funds, some have gone too far from their social goals by forming investment companies. This essay using a comparative approach and library analysis, after explaining the legal status of firms has tried to analyze the background and reasons for company management of pension funds including paying of government debt to funds, capital market restrictions in Iran and entrepreneurial profitability. The findings show that if pension funds want to pay more attention to the rights of their members, it is necessary to significantly reduce the company managing, establish balancing through acquisition of shares of investment companies and other investment practices.

Keywords

• investment
• company management
• portfolio
• privatization
• pension fund