Board of Directors Membership

The new Turkish Commercial Code to become effective on the 1st of July 2012 introduces a major change regarding the Board of Directors (BoD) Membership of Joint Stock Companies. With the new legislation, legal entities are allowed to nomitate themselves for election in order to become a BoD member. Moreover, a BoD member does not have to be a shareholder of the company (New TCC art. 359/§ 2).  The company, the shareholders and the creditor may be protected against disputes arising from responsibility conflicts that have not been regulated effectively in the old commercial code since legal entities can be held responsible for its decisions and actions. Foreign companies may also benefit from this new provision.

With its extended knowledge and experience, Albars Corporate Finance Consultancy may provide Turkish companies or companies with foreign capital advise on corporate governance and BoD membership in Joint Stock Companies.