Lawyer in Turkey: Turkish Trade Law most important changes on 1 July 2012

Thursday, March 8, 2012

Turkish Trade Law most important changes on 1 July 2012

In Turkey, on July 1st 2012, a new Turkish Trade Law will be in place.

This law implements the following changes in regulation:
  • Turkish Limited Companies can be established with only one partner.

Board Meetings
  • General board meetings can be held online for the benefit of foreign shareholders.
  • Minority shareholders rights will be strongly protected.
  • Minority shareholders can call for the general board to have a meeting.
  • Board members are not obligated to be shareholders of their companies.
  • Board members have tenure for a maximum of three years. After three, years a re-election of board members must occur.
  • Board members can insure themselves for their business practices.

Financial part
  • Companies can buy their own shares.
  • Neither board members nor shareholders may borrow money from their own company.
  • Board members cannot compete with their own company’s business outside of their own respective company.
  • If 25% of company shareholders are present, a general board meeting can take place.
  • On January 1st, 2013, book keeping records must be done in the International Financial Reporting standard (IFRS)

  • Auditors now have more responsibilities.
  • Shareholders can request special auditing for any subject.
  • On a negative Auditor report, the board must gather the general board for a meeting and  board members must resign.
  • Merger acquisition codes have been clarified, and merger acquisitions are now easier.

  • Companies must create internet web pages to circulate their knowledge.
  • Dividend advances can now be offered.

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