A study of the characteristics and requirements of endowment of stocks and the financial and economic principles governing it in the Iranian legal system

Document Type : Original Article

Authors
mahdie saneei 1
Amir Rostami Kamalabad 2
1 Assistant Professor, Department of Financial-Economic Law, South Tehran Branch, Islamic Azad University, Tehran, Iran.
2 Master's student, Financial and Economic Law, South Tehran Branch, Islamic Azad University, Tehran, Iran.
10.22034/jble.2025.550629.1028
Abstract
Endowment is the retention of real property and the realization of its benefits for the intentions of the donor and charitable affairs. The basic condition for the validity of a endowment is the “objectivity and viability of the endowed property.” Shares are a document or document that indicates a person’s ownership in a joint-stock company. The share certificate itself has credit value, but its real asset is part of the company’s capital. Although shares are inherently financial credit, they can be endowed as a representative of part of the company’s tangible assets. Iranian legal practice is inclined towards accepting this type of endowment. This satisfies the condition of the permanence of the object in the endowment. The endowment of shares requires the preparation of an official document and the transfer of ownership to the donee or the trustee. Receipt can be made by registering changes in the company’s stock books or the stock exchange system. The principle is that endowment shares can no longer be bought and sold except in exceptional cases (such as a change for the best interest of the endowment with the permission of the Sharia ruler or the Endowment Organization). In addition, it should be noted that existing laws do not explicitly address the endowment of securities; special provisions need to be included in the Endowment Law or the Stock Exchange.
Keywords
shares
financial principles
endowment
profit

  • Receive Date 23 July 2025
  • Revise Date 06 September 2025
  • Accept Date 11 September 2025
  • First Publish Date 11 September 2025
  • Publish Date 23 August 2025