A Review of the Compliance of NIOC s Process of the Board of Directors Appointment with the Principles of Good Corporate Governance

Despite decades from its establishment, National Iranian Oil Company (NIOC) has failed to gain the reputation of a prosperous international company. This failure may be due to different reasons, however, the role of the directors in the success of a company is undeniable. Recruiting efficient directors and subsequently forming a strong board of directors are challenges addressed by the concept of Good Corporate Governance; when the concept is divided into pieces, we can apply it to process of appointing directors. The purpose of this research is to scrutinize and describe the appointment process of board of directors from Good Corporate Governance point of view, identifying the NIOC’s advantages and disadvantages thereof. The findings indicate that some indicators of Good Corporate Governance such as diversity of the board in specialization is acceptable, while the minimum competencies criterion is at fading level and there is no sign of practicing independent managers criterion. At first hereto, the process is described in three sections: appointment entity, board qualifications and nomination process and following is brought its analysis by using descriptive-analytic method. In conclusion, suggestions are made in regards with enhancing standards of NIOC Good Corporate Governance about board of directors appointment