Drawing on OECD's principles for state owned corporate governance, this article identifies "good corporate governance factors". Thus, having presented the theoretical framework, it analyzes systematically the measures on "Implementation of General Policies pertaining to Article 44 of the Iranian Constitution" as the most important legal framework on "economic activity by public sector" in Iran, and examine its strengths and weaknesses in terms of good corporate governance factors. The research method is based on a summarizing and directional Qualitative Content Analysis. Findings of the research show that focusing on transfer of ownership rather than good corporate governance, the lack of consistent ownership policy on economic enterprises, and lack of attention to conditions prevailing in private and cooperative sectors and stakeholders, preventing market from fair competition, are among the act's most prominent weaknesses in terms of "good corporate governance factors". On the other hand, existence of legal structure for state-owned companies' activity and their emphasis on transparency and accountability to "Competition Council" and "Stock Exchange Organization" are among the act's most prominent strengths in terms of "good corporate governance factors".