New Turkish Trade Law in Turkey
Dear Colleagues,
In Turkey, on July 1st
2012, a new Turkish Trade Law will be in place.
This law implements the
following changes in regulation:
-
LLCs can be
established with one partner.
-
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.
-
Minority
shareholders rights will be strongly protected.
-
An Early Risk
Determination Committee must be established to forecast
potential risks for stock market companies.
-
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.
-
Minority
shareholders can call for the general board to have a meeting.
-
If 25% of
company shareholders are present, a general board meeting can
take place.
-
Shareholders
can request special auditing for any subject.
-
There are
three types of auditors:
A. External Auditors
B. Operational
Auditors (capital rising, merger, bond sales…)
C.
Special Auditors
-
On January 1st, 2013, book keeping records must be done
in the IFRS format. (For all companies)
-
If an auditor gives a negative opinion on a report, the
board must gather the general board
for a
meeting within four days 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.
-
General board meetings can be held online for the benefit
of foreign shareholders.
-
Dividend advances can now be offered.
-
Auditors now have more responsibilities.
If you have any questions, do not hesitate to
contact
hdogan@nexiadenetimturkey.com
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