"Joint stock companies and their affiliates within the scope of Law No. 6215 have until 12.04.2012 to amend their articles of association in violation of such Law."
In our Client Alert 2011/1 we had provided information regarding the amendment of Article 401 of the Turkish Commercial Code (Law No. 6215 published in the Official Gazette dated 12.04.2011 and numbered 27903).
The amendment of Article 401 of the Turkish Commercial Code restricts the privileged shares in joint stock companies and their affiliates, in which the Government, special provincial administrations, municipalities and other public legal entities, trade unions, associations, foundations, cooperatives and their parents are among the shareholders. Accordingly, in such companies, privileges can only be granted to shareholders which are public legal entities, associations and foundations working for public interest.
The amendment required any articles of association contrary to such restriction to be amended until 12.10.2011, six months following the effective date of the amendment.
The six-month period was extended to "one year," one day prior to its expiry by the Decree of the Council of Ministers dated 26.09.2011 and numbered KHK/654 published in the Official Gazette dated 11.10.2011 and numbered 28081 (Repeated) ("Decree").
Thus, joint stock companies and affiliates within the scope of the amendment are granted additional six months until 12.04.2011 in order to comply with the amended Article 401 and change their articles of association accordingly.
Furthermore, the Decree also amends the Decree dated 03.06.2011 and numbered 640 Regarding the Organization and Duties of the Ministry of Customs and Trade by adding a Provisional Article 6 which grants authority to the Minister of Customs and Trade to extend the one year period by up to three months.
Our Client Alerts are for general information purposes and should not be regarded as legal advice.
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