NEWS

THE DEADLINE TO ADJUST A COMPANY'S ARTICLES OF ASSOCIATION TO THE REGULATIONS OF THE NEW TURKISH COMMERCIAL CODE IS LOOMING


With the new law in effect, it is required for companies that operate in Turkey to amend their articles of association. The new deadline (after the previous ones were extended) given to make these changes is 1 July 2014.

If companies do not make the required changes before the deadline, on 1 July 2014 the Code will replace a company’s articles association. For companies this means special conditions negotiated before the changes came into effect will be overridden by the new rules. This means company internal procedures will be affected in a considerable way and the organs of the company will be under be new restrictions.

As a consequence companies are now limited and restricted from carrying out items previously planned. To avoid this negative impact and potentially considerable drawbacks, it is necessary that companies properly examine their articles of association and commercial contracts in light of the changes in the Code.