Special Report – Corporate Governance Reform & Organizational Restructuring

The Role of Abtin Consulting Group in Reviving Frozen Companies

Many frozen companies in Iran and globally face not only liquidity challenges but also inefficient management structures and weak corporate governance, which limit decision-making, reduce transparency, and increase operational risks.

Key to recovery: Redesigning the board structure, establishing independent committees (audit, risk, and compensation), and implementing internal oversight frameworks based on international standards such as ISO 37000 and OECD Principles. Abtin Consulting Group provides modern governance models and decision-making frameworks, playing a central role in improving transparency, organizational agility, and reducing the likelihood of companies becoming frozen.

• Studies indicate that companies with concentrated boards, lack of specialized committees, and opaque decision-making processes are more prone to freezing or liquidity crises.
• Low transparency in financial reporting and limited risk control reduces investor confidence and access to financing.

• Audit Committee: Oversees financial reporting and compliance with standards, preventing financial discrepancies.
• Risk Committee: Identifies, evaluates, and manages operational, financial, and strategic risks.
• Compensation Committee: Designs balanced incentive packages aligning management goals with long-term performance.
• Global case studies such as Nissan (2009) and Lufthansa (2020) show that establishing independent committees accelerates decision-making and enhances transparency.

• Implementing internal controls based on ISO 37000 or COSO frameworks to ensure operational efficiency.
• Defining KPIs for board and committee performance.
• Mechanisms for regular, transparent reporting to investors and stakeholders.

• In developed countries, corporate governance redesign is a key stage in rescuing distressed companies.
• Successful models include increasing board independence, clearly defining roles, separating ownership and management, and closely monitoring financial and strategic decisions.

• Many boards are small, non-specialized, and have limited decision-making power.
• Lack of financial and risk reporting transparency reduces trust from investors and banks.
• Medium and large companies require independent specialized committees to optimize decision-making.

• Regulatory limitations and corporate governance laws that are less developed compared to international standards.
• Absence of a culture of transparent reporting and internal oversight mechanisms.
• Need for training and capacity-building for board members and executive teams.
• Concentration of ownership and decision-making in a few individuals hinders risk management and sustainable growth.

• Define precise roles and responsibilities for board members and committees.
• Increase independence and expertise of members following international standards.
• Establish key committees: audit, risk, compensation, and performance monitoring.

• Design transparent decision-making guidelines with defined authority levels and approval workflows.
• Implement regular reporting systems and board management information portals.
• Conduct periodic board meetings with performance evaluation and risk oversight.

• Design internal controls and performance indicators based on ISO 37000 and COSO.
• Develop risk dashboards and early-warning indicators.
• Train and empower management teams for continuous monitoring and improvement.

• Improved Decision-Making: Strategic decisions become faster and higher-quality.
• Transparency and Investor Confidence: Reliable and transparent information is provided.
• Reduced Risk of Freezing: Proper board structure and internal oversight minimize operational halts.
• Preparedness for Growth and Investment: Companies are ready for mergers, foreign investment, and market expansion.

• Weak corporate governance is a primary reason for company freezing and liquidity crises.
• Establishing independent committees and transparent decision-making frameworks aligns management and shareholder goals.
• Governance reengineering is not only a legal requirement but also a strategic tool for company growth and sustainability.

Corporate governance reengineering is the foundation for reviving frozen companies. Abtin Consulting Group, with expertise in designing modern governance models, redesigning boards, establishing specialized committees, and implementing internal oversight frameworks, is ready to guide companies toward sustainable growth and organizational transparency.