Conflict of Interest Between Managers and Partners in Cooperative Companies and Solutions

Abstract

The conflict of interest between managers and partners in cooperative companies is an important issue that requires discussion and examination. Accordingly, the aim of the present article is to explore this issue and provide solutions in this regard. The current article is descriptive-analytical. The materials and data are qualitative, and note-taking has been used for data and content collection. The most significant conflicts of interest between managers and partners in cooperative companies include transactions between managers and the company, receiving loans from the company, competition with the company, accepting gifts and privileges, appointing individuals based on personal and familial relationships, serving on the board of competing companies, and personal use of the company's assets. The primary solutions to these conflicts include granting partners the authority to dismiss managers, prohibiting transactions between managers and the company, preventing managers from engaging in insider trading, prohibiting the granting of loans to managers, creating positive incentives for managers, imposing negative incentives, limiting the duration of managerial positions, restricting managers' participation in meetings and decision-making processes, limiting managerial roles, requiring managers to disclose personal interests in decisions, and banning the acceptance of gifts and privileges. The current laws have not adequately addressed the conflict of interest between managers and partners in cooperative companies. Considering the increasing development of cooperative companies and their significant economic impact, the enactment of relevant laws is essential.