Management share of petrochemical holdings and companies

After implementation of Article 44 of the Constitution concerning the necessity of privatization of economic enterprises of the petrochemical industry - specialized holdings were formed with the aim of ownership and management of petrochemical complexes in the country. Meanwhile, the Persian Gulf Petrochemical Industries Company (PGPIC), as the largest specialized holding company, held 36.2% share in the industry’s management and 25.4% of its ownership in 2020, followed by Parsian Oil and Gas Company with 16.4% and 9.5%, respectively, in terms of both management and ownership.

Ownership share of petrochemical holdings and companies

In the privatization process, the transfer of "proprietary" shares of petrochemical companies to several shareholders caused a fragmentation in the management structure of companies, which in practice caused managerial problems; to overcome this challenge and better management of companies, by preserving the shareholders' rights exercised through preserving their seats on the board of directors, the companies are based on the composition of the shareholding percentage in the form of large holdings, and the meaning of "management share" is that the major shareholder shall take care of the management and coordination of this group companies.