The Legal Structure of the "Comply or Explain" Approach: A Study in the Economic Dimension of the Penalty Element (Comparative study)

Main Article Content

Ammar Habeeb Jahlool

Abstract

The research topic focuses on the Comply or Explain rule as an advanced legal methodology that emerged from the developments of economic life at both the official and societal levels. Many recent legislations have adopted the aforementioned rule as a flexible methodology in enforcing the rules of law that depends primarily on taking into account the special character of commercial interests on the one hand and not compromising the rule of law on the other hand. The idea of ​​the mentioned rule is mainly focused on enabling traders (individuals and companies) to establish their own regulatory mechanisms to respond to the rules of law on the one side and involving the social element in monitoring them and holding them accountable in the event of violating the rules of law on the other side. The Comply or Explain methodology therefore allows traders to choose the appropriate time to work with the provisions of the law, provided that the reason for this laxity is disclosed to the market in general and the regulatory authorities in particular. On this basis, the research specifies a state of legal integration between the official bodies responsible for monitoring the implementation of the law and the unofficial bodies (the market) authorized by the disclosure (explanation) mechanism to monitor traders who violate the provisions of the law and take the appropriate position against them according to the market’s ability to influence the field of credit and commercial reputation

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How to Cite
Habeeb Jahlool ع. . (2025). The Legal Structure of the "Comply or Explain" Approach: A Study in the Economic Dimension of the Penalty Element (Comparative study). MIsan Journal of Comparative Legal Studies, 1(13), 205–232. Retrieved from https://uomisan.edu.iq/law/mjcls/index.php/mjcls/article/view/449
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