The Communique on the Procedures and Principles Regarding the Implementation of the Article 376 of the Turkish Commercial Code Numbered 6102 (the “Communiqué”) has been published in the Official Gazette dated 15 September 2018, numbered 30536 and entered into force as of its publication date.
The Communique regulates the procedures and principles to be applied to joint stock companies, limited liability companies and limited partnership companies in which the capital is divided into shares which are in dept and/or losing their capital with respect to general assemblies to be held in case of loss of capital, reduction, enhancement and completion of capital, and in case the company is submerged in debt are regulated.
The Communique brings detailed regulations on the basis of the financial statements regarding corporations and balance sheet, recruitment projects that will be submitted to general assembly by management bodies and the procedures which will be applied regarding invitation of general assembly in case of specified circumstance. Additionally, it is stated that losses regarding exchange rates arising from executory foreign currency liabilities shall not be taken into consideration in the calculations related to the loss of capital or going into debt.
By Duygu Bozkurt, Attorney at law Moral & Partners