Joint-Stock Corporation under Turkish Commercial Law and the Doctrine of Increasing Shareholder Commitments

• Main Author: Berna Tepe
• Format: Article
• Language: English
• Published: University Library System, University of Pittsburgh 2015-11-01
• Series: Emerging Markets Journal
• Subjects: Turkish Commercial Code; joint-stock corporations; principle of single obligation; shareholder commitments; increase in shareholders commitments; reduction of shareholder rights; mergers; rescission of general assembly decisions
• Online Access: http://emaj.pitt.edu/ojs/index.php/emaj/article/view/85
• ISSN: 2159-242X; 2158-8708

<br /><p align="center"> ABSTRACT</p><p align="center"> </p><p>The principle that the shareholder of a joint-stock company is under the single obligation of paying in his contribution to the equity-capital is in force within the framework of the 2011 Turkish Commercial Code. It appears as if the reinforced principle of “single obligation” critically challenges the relevance of the formerly settled norm of subjecting increase in shareholders’ commitments to unanimous consent of all shareholders.  That being said, since the Turkish Commercial Code also contains deviations to the single obligation principle in addition to the fact that the notion of increase is shareholders’ commitments was not made entirely obsolete from the Turkish Commercial Code, the doctrine for subjecting increases in shareholders’ commitments to the general assembly’s unanimous vote is - to an extent - still relevant within the context of the 2011 Turkish Commercial Code.</p>