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)

Auditing

• 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.

Other

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