Nourlaw.com- Tehran- 3 January 2017- The Official Gazette today published the law of Agreement on Mutual Promotion and Protection of Investment Concluded between the Government of the Islamic Republic of Iran and the government of Slovak Republic, approved by the parliament on 25/8/1395 (15 November 2016).
It is stated in the preface of the Agreement that the goals of signing such accord is facilitation of investment for increase of economic capability and sustainable development of both contracting parties, prevention of and combating corruption such as bribery in international cooperation and investment, encouraging corporate social responsibility, protection of health, safety, environment and safeguarding the domestically and internationally recognized labor rights.
According to Article 1 of the Agreement the term “investment” covers shares and contributions of all types of companies, negotiable instruments, bonds, loans and other kinds of debts in a company, properties including tangible and movable assets, rights emerging from lease, mortgage, lien, rights granted by permits and licenses, intellectual property…
Article 2 of the law expands its scope of applicability to the investments made before or after enforcement of the Agreement, provided such investments have been formed in accordance with the laws of each contracting state.
Article 3 stipulates that the contracting states shall adopt fair approach and render full support and create security respecting the investments of the other party.
The Agreement contains 24 articles and tackles different aspects of mutual investments and economic coopersation. It includes the following sections:
Definitions and Scope of Applicability; Standard of Conduct: National Conduct and Most Favored Nation Conduct; Compensation of Damages; Confiscation; Money Transfer; Prevention of Entitlement to Benefits; Substitution; Labor Rights, Environment and Other Standards; General Exceptions; Important Security Concerns; Propagation of Information and Transparency; Settlement of Disputes Between the Investor and the Government (general provisions, fraud, tax evasion, corruption and bribery); Negotiations; Agreement of Each Party with Arbitration; Reference of Dispute to Arbitration; Appointment of Arbitrators; Applicable Law; Arbitral Awards: Enforcement of Awards; Settlement of Disputes between the Contracting Parties; Final Provisions, Applicability, Duration and Termination