Minority Shareholder Rights
"What protections exist for minority shareholders in Turkey?"
Quick Answer
Minority shareholders generally (10% in non public A.Ş. and 10% in Ltd., and 5% in listed public A.Ş.) have statutory rights such as requesting a special audit, requesting that the general assembly be convened or an item be added to the agenda, and filing actions to annul certain general assembly resolutions. In joint stock companies, shareholders may also seek dissolution for just cause, and courts may order an alternative remedy instead of dissolution.
Key Aspects Under Turkish Law
Understanding minority shareholder rights is crucial for businesses operating in Turkey. The Turkish Commercial Code provides the legal framework governing this area, with specific provisions that differ from other jurisdictions.
Key Points to Remember
- Turkish Commercial Code No. 6102 provides the primary legal framework
- Trade Registry registration is typically required for enforcement
- Foreign investors have equal rights with domestic entities
- Proper documentation and corporate formalities are essential
Practical Considerations for Businesses
When dealing with minority shareholder rights in Turkey, businesses should consider engaging qualified legal counsel familiar with both Turkish law and international business practices. This ensures compliance with local requirements while meeting global standards.
Documentation requirements, timeline considerations, and regulatory approvals vary depending on the specific circumstances of each case. Early planning and proper structuring can help avoid common pitfalls.
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