TURKISH CORPORATE LAW
Turkish Corporate Law refers to the legal framework governing the formation and management of corporations in Turkey. This set of laws outlines the rules and regulations that businesses in Turkey must abide by, in order to operate within the country. It is based on a system of civil law, and is primarily influenced by the Swiss and German legal systems.
TURKISH COMMERCIAL CODE
Corporate law in Turkey is governed by the Turkish Commercial Code (TCC), which was enacted in 2012 to modernize and streamline the legal framework for businesses. The TCC applies to all types of commercial enterprises, from small sole proprietorships to large corporations. The Turkish Commercial Code (TCC) is the primary law governing the formation and operation of corporations in Turkey. The TCC sets out the rules for the establishment of companies, their management structures, and the duties and responsibilities of shareholders, directors, and other stakeholders.
REGISTRATION OF THE COMPANY
Another important aspect of Turkish Corporate Law is the regulation of company formation and registration. In order to establish a corporation in Turkey, a number of legal requirements must be met, including obtaining a business license and registering the company with the relevant authorities. Additionally, companies must comply with certain regulations regarding their structure, management, and reporting requirements.
Under Turkish law, companies can be structured in a number of different ways, including joint-stock companies, limited liability companies, partnerships, and sole proprietorships. Each of these structures has its own set of advantages and disadvantages, and companies must carefully consider their options before choosing the most appropriate structure for their business.
LIMITED LIABILITY CONCEPT IN TURKEY
One of the most important features of Turkish corporate law is the concept of limited liability. Under the TCC, shareholders in a company are only liable for the debts and obligations of the company to the extent of their shareholdings. This means that shareholders are not personally responsible for any losses or liabilities incurred by the company beyond their investment.
MANAGEMENT AND GOVERNANCE OF THE COMPANIES IN TURKEY
Another key element of Turkish corporate law is the requirement for companies to have a board of directors. The board of directors is responsible for managing the company’s affairs and making strategic decisions. The TCC sets out detailed rules and requirements for the composition of the board of directors, including the minimum and maximum number of members and the qualifications that they must possess.
In addition to the board of directors, companies in Turkey are required to have a general assembly of shareholders. The general assembly is responsible for making important decisions, such as approving the company’s annual accounts, electing members of the board of directors, and making changes to the company’s articles of association.
The TCC also includes provisions relating to corporate governance, such as rules on the disclosure of information, the protection of minority shareholders, and the prevention of insider trading. These provisions are designed to promote transparency and accountability within companies and to protect the interests of shareholders.
INDEPENDENT AUDITOR’S REVIEW
One notable feature of Turkish corporate law is the use of independent auditors to review a company’s financial statements. Under the TCC, companies are required to appoint an independent auditor to review their accounts each year and provide a report to the general assembly of shareholders. This helps to ensure that companies are complying with accounting standards and that their financial statements are accurate and reliable.
Finally, it is worth noting that Turkish corporate law is subject to ongoing reform and modernization. In recent years, there have been several amendments to the TCC aimed at improving the business environment in Turkey and attracting foreign investment to Turkey. These changes have included measures to simplify company formation procedures, reduce bureaucracy, and enhance the protection of minority shareholders.
In addition to the TCC, Turkish Corporate Law is also influenced by a number of other laws and regulations. These include tax laws, labor laws, and intellectual property laws, among others. Companies operating in Turkey must comply with all relevant laws and regulations, or risk facing legal penalties and other consequences.
In conclusion, Turkish corporate law is a comprehensive and modern legal framework that provides a stable and predictable environment for businesses operating in Turkey. By ensuring transparency, accountability, and protection for shareholders, the TCC helps to foster a business-friendly environment and promote economic growth.