Formation & Establishment

The Privatization Organization has been incorporated based on Article 15 of Islamic Republic of Iran 3rd Economic, Social and Cultural Development Plan ratified in 2000, by changing the articles of association of the former Financial Organization for Promotion of ownership of Production Units.

Its articles of association was approved by the cabinet on April.18, 2001 and upon verification by Guardian Council, it was notified on May.6, 2001.

This organization has practically commenced its activities with the new objectives and tasks since June.2001. The Privatization Organization is a governmental company affiliated to the Ministry of Economic Affairs and Finance, having legal entity and financial independence and the director of executive board and its managing director is the Deputy Minister of Economic Affairs and Finance.

By issuance of the Decree of Cabinet in 2001, the Privatization Organization, while performing its entrusted tasks and duties, was appointed as a specialized holding company in order to take action for offering and sales of its own shares in sub-companies, according to the rules and regulations.

Since 2000 by now, the secretariat of the High Commission of Divestiture is located in Privatization Organization and based on the ministerial order of the Minister of Economic Affairs and Finance, the director managing of organization is considered as the secretary of the High Commission of Divestiture.

Objective

The objective for execution of privatization plan in Iran according to provisions of article 9 3rd & 4th Development , Economic , Social and Cultural Plan of Islamic Republic of Iran, inter alias are economic growth , promotion of economic efficiency and productivity of materials and human resources , increment of compatibility and partnership of private sector in economic activities and rationalization of size of the government and reduction of financial and management burden in handling the economic activities .So this organization is active for materialization of the said objectives aiming on goals stipulated in its legal articles of association based upon execution of government privatization policies through divesting and sales of governmental companies shares to the private and cooperatives sectors .

Fundamental Tasks and Duties

- To issue the suitable approaches for prompt and facile access to development of general partnership for materialization of efficiency promotion and increment of material and human resources efficiency and development of capabilities of private and cooperative sectors and its submission to High Commission of Divestiture and other concerned authorities.

- Procurement by proxy in divesting the shares of state companies which their duties have been determined based on related rules and regulations

- Price fixation and offering and assignment of the shares of qualified companies for divesting according to the approved time scheduled plan

- Execution of the determined policies by High Commission of Divestiture

- To perform any suitable operations and services for execution of plan for divesting the shares and management of governmental companies , and privatization in context of rules and regulations

- Supervision on exact execution of the provisions of the contracts concerning divesting, management and lease and to perform the affairs entrusted to the organization according to the contracts.

- To perform any other tasks and duties for divesting the shares and privatization that is borne to the organization in context of 5-year Development Plans.


Former Financial Organization for Promotion of Ownership of Production Unit

The Financial Organization for Promotion of ownership of Production Units.
which has been determined as Privatization Organization in Islamic Republic of Iran 3rd Development , Economic , Social and Cultural 5 Years Plan , was established in 1975 as a governmental company affiliated to the Ministry of Economic Affairs and Finance based on note 4 Singled Article Act for expansion ownership of entities. It has commenced its activities notably aimed on sharing the workers in factories ownership by granting the credit and facilities and to perform any measures led to development of the manufacturing units ownership all over Iran.