Review of the aftermath of the country's largest automaker's assembly/ IKCO 48 hours after the handover
The Extraordinary General Assembly of Iran Khodro began on Wednesday, February 6th, with a seven-hour delay and concluded around 7 PM after much dispute. Shortly after this controversial and tumultuous meeting, news broke out that the management of Iran Khodro would be handed over to the private sector. What could be inferred from these reports was that the management of Iran’s largest automaker, which had been under government control for years, was now being transferred to private hands. However, the power struggle for the management seat at Iran Khodro continued even after the assembly concluded.
The main outcome of the Wednesday assembly was the shareholders’ approval for the inclusion of Saba Energy Service Development, Ganjineh Iranian Investment, Behinehsazan Bahman, Etebar Afarin, and National Investment Company of Iran in the board of directors, paving the way for this automaker’s management to be transferred to the private sector.
Another significant development was the election of new board members, with Jamshid Imani, Yousef Elahi-Shakib, Adel Pirmohammadi, and Hamed Naeiji being appointed as new board members. On Thursday, the board elected Adel Pirmohammadi as the new CEO of Iran Khodro. While it seemed the appointment of a new CEO would bring an end to the controversies and Iran Khodro would enter a phase of stability, events on Thursday indicated that the story was far from over. The first incident was the refusal of Alimardan Azimi, the (former) CEO of Iran Khodro, to allow the new CEO and board members to enter the company building. It is reported that, in protest against the decisions of the assembly, he locked the management building’s door to prevent the new board members from accessing their workplace.
In response to Azimi’s actions, the new board members decided to file a complaint against the (former) CEO, which escalated to involving the police. According to a handwritten report from the Prevention Deputy to the 154th Wardawood Police Station, at 1:20 PM on Thursday, February 7th, a report was made to the 110 emergency number regarding a conflict at Iran Khodro’s main gate. Given the sensitivity of the matter, the police quickly arrived at the scene but did not observe any conflict. The police report stated that the management building’s door was locked on Azimi’s orders, preventing the new board members from entering.
However, the story didn’t end there. On Thursday night, the (former) CEO of Iran Khodro appeared on a television program criticizing the process of the company’s assembly and the non-issuance of the Competition Council’s review board ruling regarding Iran Khodro’s shareholding structure. Additionally, the chairman of the Competition Council’s review board criticized the unauthorized publication of the ruling concerning Iran Khodro’s shareholding structure on another television program.
According to him, the review board session on Monday, February 4th, 2025, was held regarding Iran Khodro’s shareholding structure. However, based on legal procedures, there is a 10-day period to officially announce the ruling to both parties through legal channels. Sadeghi-Shahdani mentioned that the Competition Council’s review board ruling is still under review, needs to be drafted and validated, and will be announced after these steps are completed. In response to the question about who sent a copy of the ruling to the Prosecutor’s Office, he stated that they did not send it to anyone and do not know who informed the Deputy Prosecutor.
The events of Thursday, especially the (former) CEO’s obstruction of the new management’s entry and his comments on the legality of the recent assembly, came as the Stock Exchange Organization confirmed the legality of the assembly. In a statement released on Thursday, the Public Relations of the Securities and Exchange Organization stated, “The stock market supervisor was present throughout the extraordinary general assembly of Iran Khodro on February 6th, 2025, which was held with the participation of 50.11% of the shareholders to elect the board members. The presence of the market representative is to ensure compliance with regulations and to protect the rights of all shareholders. Regardless of the events before the assembly and the related controversies, which are beyond the scope of oversight, the market representative found no issues, flaws, or violations of laws and regulations in the assembly’s proceedings and outcomes, which were in accordance with the regulations.”
In the end, Azimi accepted the termination of his tenure as CEO of Iran Khodro following the Stock Exchange Organization’s confirmation of the assembly’s legality and, in a farewell letter, bid goodbye to Iran’s largest automaker. In his letter, he stated that he had tried to adhere to the relevant laws and regulations to safeguard all shareholders’ legal rights. He emphasized, “Considering the position of the Securities and Exchange Organization that what happened in the assembly was in accordance with regulations, and since I consider myself bound by law and regulations, to prevent any disruption in the company’s operations and ensure the continued production of vehicles, I hereby relieve myself of responsibility, which now falls upon the esteemed Securities and Exchange Organization and other relevant institutions.” According to the former CEO’s statements, the new CEO and board members can commence their duties at the company from today. But does this mean the end of the saga regarding the transfer of Iran Khodro’s management to the private sector? It seems not.
