Home Turkish Trade Law Can corporates take their shares?

Can corporates take their shares?

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1- IN WHICH CASES CORPORATES CONSIDER THEIR SHARES AS ACQUISITION OR DEPOSITUM TAKE PLACE?

1.1- A corporate is not able to accept its shares which will exceed its capitals 1/10 rate, as acquisition or deposition. This provision also includes the third person from the corporate who consider his share as acquisition or deposition.

1.2- In order to accept the shares as acquisition or deposition according to the first article of the related law, general assembly has to inform the members of the board.

In this authorization, valid for at most 5 years, the shares to be accepted as acquisition or deposition will be shown by their lower and upper limits are shown. In every permission request, the board states that legal requirements are achieved.

1.3- Additional to the conditions in the article number one and two, after the shares to be acquired are dscounted, the rest active has to be equivalent to at least the total of capital and substitute reserves.

1.4- According to these provisions, only the shares paid can be acquired.

1.5- Above mentioned provisions are executed in case of the fact that main company’s shares are obtained by subsidiary company. Regarding the companies having stock exchange securities, Stock Exchange Commission makes arrangements in terms of principle of transparency and rules of price.

2- DO CORPORATES CAN ACQUIRE THEIR SHARES WITHOUT THE DECISION OF GENERAL ASSEMBLY?
A company, getting rid of a serious loss and harm if necessary, is able to acquire it share without the decision of general assembly regarding authorization.
2.1- The reason and the aim of acquisition
2.2- The number of the shares acquired, nominal par or par value and which part of the capital is represented,
2.3- its cost and payment conditions,
need to be informed.

3- WHAT ARE THE EXCEPTIONS IN THE CASE OF CORPORATES ACQUIRING THEIR SHARES?

A Corporation is able to acquire its share if;
3, 1- It practices the legislations regarding diminishing the capital according to the related law number 473 and 475.
3,2- Total subrogation
3,3- If a law begot necessity of buying
3,4-  If it aims to collect on the condition of all the debts are paid.

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Source: Turkish Trade Law

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

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