Insolvency
"What constitutes corporate insolvency under Turkish commercial law?"
Quick Answer
Insolvency (Borca batıklık) is a state where a company's liabilities exceed the total value of its assets. Under the Turkish Commercial Code, insolvency triggers legal duties for directors, including notifying the court and initiating bankruptcy or concordat proceedings.
Scope and Legal Distinctions
Cash-flow difficulty, balance-sheet over-indebtedness and a bankruptcy order are different conditions. They may require different management responses and proceedings.
What to Check in Practice
Review current liabilities, realisable assets, guarantees, financial statements and payment forecasts; preserve board decisions and obtain advice before mandatory filing duties arise.
Sources & Authorities
Statutory framework and official guidance for this definition.
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