Industries Support and Factory Shutdown Prevention Board
Pursuant to the adoption of the Industries Support and Factory Shutdown Prevention Act on June 9, 1964, a board was established under the title of “Industries Support Board” at the Ministry of Economic Affairs and Finance to protect domestic industries and prevent shutdown of the country’s factories as per the above act. The Board was placed under authority of the current Ministry of Industry, Mine and Trade in 1974 with the same tasks. This Board is a legal person and its members (or their substitutes) are named upon nomination by the ministries and affiliated institutes and following approval by the Board of Ministers.
Pursuant to Article 1 of the Industries Support and Factory Shutdown Prevention Act, this Board is comprised of five members, who are chosen as explained above. These members are as follows:
1.Representative of the Ministry of Labor and Social Services (current Ministry of Cooperative, Labor and Social Welfare): Mr. Karim Yavari;
2.Representative of the Ministry of Economy (current Ministry of Industry, Mine and Trade): Mr. Rajab-Ali Sadeqi;
3.Representative of State Planning Organization (current State Management and Planning Organization): Mr. Qasem Ramezanpour;
4.Representative of Iran Chamber of Industries and Mines (current Iran Chamber of Commerce, Industries, Mines and Agriculture): Mr. Mahmoud Eslamiyan;
5.An industrial or economic expert, chosen by the Ministry of Industry, Mine and Trade and the Ministry of Cooperative, Labor and Social Welfare: Mr. Ali-Asghar Yousefnejad.
Description of Tasks (Board’s Secretariat)
Supporting domestic industries and preventing the shutdown of factories through:
1.Examining conditions for supporting factories which have been distinguished as ‘facilities exposed to crisis’ by the Board of Ministers, or the Minister or introduced as such by the Ministry of Industry, Mine and Trade and the Ministry of Cooperative, Labor and Social Welfare and making decision on the necessity of temporary administration of the factory, its facilities and property at the Secretariat of the Board;
2.Nomination and appointment of an executive manager to run affiliated factories on a temporary basis should such a necessity arise;
3.Signing agreements with state-run or private credit institutes or the State Management and Planning Organization for acquiring the necessary credit to run the factory temporarily;
4.Transfer of the factory’s installations and property through choosing and introducing a representative or representatives by the Board of Ministers;
5.Valuation of properties (set forth in Clause B of the Executive Bylaws) by the representative appointed by the Board;
6.Determining salary for the managers of the factory;
7.Providing funds and means of travelling for Board members for possible supervision on factories;
8.Compiling comprehensive reports about the economic, financial and technical situation as well as social situation of the factory after six months of temporary administration (set forth in Article 24 of the Executive Bylaws of the Industries Support and Factory Shutdown Prevention Act);
9.Choosing a secretary for the Board from among members or from outside the Board to run administrative affairs of the Secretariat; write down minutes; look after property, documents, securities and correspondences of the Board; and handling financial affairs of the Board;
Conditions for Supporting Industries and Temporary Administration of Factories
Pursuant to articles 2 and 3 of the Industries Support and Factory Shutdown Prevention Act, in either of the following cases leading to the shutdown of the factory, the Board shall name natural or legal person or persons as the manager of the factory. Such person or persons shall be considered as trustee/trustees during their temporary term in office and shall exercise authority as decided by the Board in the case of:
1.Work stoppage from the day the stoppage verdict is issued;
2.Issuance of bail;
3.Death or incapacitation from the date announced by the Ministry of Cooperative, Labor and Social Welfare about the shutdown of the factory;
4.Issuance of writ of execution (including funds run by state-run organs or the State Management and Planning Organization or other state-run institutes as well as institutes, which have been entrusted with or paid public funds or guaranteed loans);
5.Pursuant to Article 12 of the same Act, in the event of dispute between laborer and employer and before it is settled, the Board of Ministers can, upon proposal by representatives of the Ministry of Cooperative, Labor and Social Welfare, run the factory at the cost of proprietors and owners in consideration of Article 143 of the Labor Act. (According to Article 12 of this Act, the factory could be seized by the Board).
Conditions for Termination of Temporary Administration of Affiliated Factory
In consideration of Article 9 of the aforesaid Act, the period for the temporary administration of factories ends following a decision by the Board and upon the fulfillment of conditions 1, 2, 3 and 4 set forth in this Article, and in consideration of Article 10 regarding the transfer of factory after the return of the consumed credit, making sure about the reimbursement of debts to the Board, as well as declaration of preparedness by involved persons to fulfill their obligations for the management of the factory. This may apply to the following cases:
1.In case of the shutdown after final decision about the ownership of the factory operations aimed at its settlement or termination;
2.In case of providing the factory with supplies after the removal of supply-related causes of shutdown;
3.In case of death or incapacity after the removal of death/incapacity-related causes of shutdown;
4.In cases when a writ of execution is issued* as described under Article 3 after the Board is informed about collection of the debt subject of the writ, or drawing up of final transfer documents.
*By virtue of provisions set forth in Article 3 of the Act, in cases when a writ of execution is issued for the collection of public funds paid in industrial loan or revolving fund or banking credit or transaction with the right of stoppage in transit for the factory, whether or not these funds are administered by state organs or the State Management and Planning Organization or other state-run institutes or institutes that have received loans from public funds, the Board can take control of the factory as of the date of the issuance of the writ of execution within the framework of regulations supporting industries.