Turkey | Remedies available in the case of capital loss or over-indebtedness
27 September 2018
Client Alert | Turkey | Corporate Law
On 15 September 2018, a Communiqué on the procedures and principles relating to the implementation of Article 376 of the Turkish Commercial Code (the "Communiqué") was published in Official Gazette No. 30536.
The purpose of the Communiqué, issued by the Ministry of Trade, is to set forth the procedures and principles to be implemented in the event of a capital loss or the over-indebtedness of joint-stock companies (anonim şirket, in Turkish), limited liability companies (limited şirket, in Turkish) and partnerships limited by shares (sermayesi paylara bölünmüş komandit şirket, in Turkish).
While the Communiqué mainly reiterates the provisions of Article 376 of the Turkish Commercial Code, it also introduces new and important remedies in addition to those already existing under Article 376.
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