The shareholders of a Turkish company
have a series of rights and obligations that derive from their asset investment in the company. Companies are set-up with a minimum number of shareholders and a mandatory minimum share capital.
The two most common types of companies set-up by foreign investors in Turkey
are the joint stock company and the limited liability company. Our lawyers in Turkey
can give you additional information about their characteristics and about the liabilities and rights of the shareholders
Types of shares available for companies in Turkey
The company’s Articles of Association contain information about the types of shares
and how they can be transferred or distributed. Most shares issued by Turkish companies
are general ones, in the form of share certificates. Different classes of shares
can exist within one companies and the special types of shares offer additional privileges to shareholders.
The joint stock company can have registered shares and bearer shares. For this type of company, the shareholders can be individuals, other Turkish companies or both.
Shareholder’s rights in Turkey
A company’s shareholders
are entitled to receive dividend payments but they must also receive a repayment in the case of company liquidation
. They also have a pre-emption right to receive shares, after a capital increase is performed.
Shareholders have voting rights and they also have the right to be informed of any changes in the company, its situation or evolution. According to the Turkish Commercial Code shareholders have the right to participate in the General Meetings or, if they cannot be present, they have the right to appoint a representative.
Minority shareholders in Turkey are those that sum up for at least 10% of the company’s share capital. According to law, they have a series of rights for being represented on the board or request that a balance sheet discussion is postponed. They can also ask to be add a certain topic on the General Meeting’s agenda.
Our lawyers in Turkey
can help you with other shareholder related matters, like drawing up special shareholder’s agreements.