A Glance At The New Turkish Commercial Code
The new Turkish Commercial Code No. 6102 (hereinafter referred as “TCC” or “the new TCC”) consisting of 1535 articles was adopted by the Turkish Parliament on January 13th, 2011. But, for obtaining the acquiescence of business actors to the new law and allowing relevant institutions to prepare the secondary legislation, the Turkish Parliament decided to put the new code into force after one and a half years. Thus, the new TCC was put into force on July 1st, 2012.
Turkish Commercial Code consists of 6 chapters. These are;
- Commercial Enterprises,
- Commercial Companies,
- Negotiable Instruments,
- Transportation Operations,
- Maritime Law,
- Insurance Law.
Second chapter of Turkish Commercial Code covers the joint-stock and limited liability companies. With the new TCC. establishing, operating and managing a company in Turkey becomes extremely safe and easy, both for domestic and foreign entrepreneurs.
New Turkish Commercial Code No. 6102 which was put into force on July 1st, 2012 allows the establishment of JSC and LLC with one shareholder. Single member board of directors turns into possible. LLCs can be managed and represented by a single manager. Members of the BOD and LLC managers are not obliged to be Turkish citizen and reside in Turkey. The meetings of the board of directors and managers can be done electronically.
TCC also allows the shareholders of JSCs and LLCs to participate and vote at general shareholders meetings via an electronic platform. Article 1527 of TCC established the legal basis that electronic participation and voting have the same legal consequences as physical participation and voting.
In short, establishing and managing a company in Turkey becomes easier and safer more than before and most of the other countries.