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:: Volume 1, Issue 3 (Interdisciplinary Legal Research, Oct 2020) ::
ILR 2020, 1(3): 32-48 Back to browse issues page
Liability of Public Limited Companies Inspectors and Auditors in Iran and United Kingdom
Ali Reza Salehyfar1 , Mohammad Rostami 2
1- Private Law Department, Faculty of Law, Kharazmi University, Tehran, Iran
2- Faculty of Law, Kharazmi University, Tehran, Iran. (Corresponding Author)
Abstract:   (2317 Views)
Background and Aim: Supervision of Public company is accepted in most legal systems. In the legal system of Iran, inspectors are liable for overseeing Public limited company and in other countries like UK; this is the auditor's duty. Given the importance of the proper function of auditors and inspectors in protecting shareholders' rights, their liability has been considered in numerous rules and judgment.
Materials and Methods: For present study, the descriptive approach has been chosen.
Ethical Considerations: All ethical considerations as well as authenticity of the texts have been observed.
Findings: This article, which deals with comparative study of liability of inspectors and auditors in these two legal systems, first, it described the duties of the "inspector" of the Public limited company in the Iranian legal system along with the legal duties of the auditor in the UK. The findings of this research indicate that failure to process accounts, failure to declare violations or offenses and disclose company trade secrets are the most important examples of behaviors that lead to the emergence of liability of the company's inspectors and auditors.
Conclusion: In UK, based on statutes and case laws, the responsibility of auditors was acknowledged toward legal person of the company, the third parties as well as shareholders. In Iranian law, the most important related legal reference named Commercial Law Bill (1968) has limited inspectors responsibilities only toward  legal person of the company, the third parties but shareholders should also be added.
Keywords: Inspector, Auditor, Failure, Duty of Care, Liability
Full-Text [PDF 1194 kb]   (1158 Downloads)    
Type of Study: Research |
Received: 2020/08/2 | Revised: 2020/08/29 | Accepted: 2020/09/5 | Published: 2020/10/1
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Salehyfar A R, Rostami M. Liability of Public Limited Companies Inspectors and Auditors in Iran and United Kingdom. ILR 2020; 1 (3) :32-48
URL: http://ilrjournal.ir/article-1-50-en.html


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Volume 1, Issue 3 (Interdisciplinary Legal Research, Oct 2020) Back to browse issues page
فصلنامه علمی تخصصی پژوهش‌های حقوقی میان‌رشته‌ای The Quarterly Journal of Interdisciplinary Legal Research
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