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Capital Increase Within the Scope of Turkish Commercial Code

Capital Increase is regulated under articles 456 of the Turkish Commercial Code No. 6102. The Capital Companies usually prefer increasing their capital to strengthen their capital structure to meet their needs for additional funds after expansion of their business.

Capital increase requires an amendment to the Articles of Association. Board of directors shall prepare an amendment text concerning the increase.

Decision regarding capital increase is reserved to the competence of the general assembly. Pursuant to Article 408/1,a TCC, the general assembly cannot delegate said power to another body.

The Board of directors shall prepare and submit to the general assembly a report stating the purpose, scope and procedure of the capital increase. This report shall be registered and announced together with the resolution for capital increase.

Capital Reduction Within The Scope Of The Turkish Commercial Code

Capital reduction is regulated under articles 473-475 of the Turkish Commercial Code No. 6102 (“TCC”). The capital of a company can be reduced in order to return some of the capital to the shareholders.

Capital reduction requires an amendment to the Articles of Association. Board of directors shall prepare an amendment text concerning the reduction.

Decision regarding capital reduction is reserved to the competence of the general assembly. Pursuant to Article 408/1,a TCC, the general assembly cannot delegate said power to another body.

The Board of directors shall prepare and submit to the general assembly a report stating the purpose, scope and procedure of the capital reduction. This report shall be registered and announced together with the resolution for capital reduction.

We help our client prepare the required documents and make registration at the trade registry.