How is a Share Transfer Carried Out According to Joint Stock Companies Law?
How is Profit Distribution Carried Out in Joint Stock Companies Law?
In joint stock companies law, share transfer is subject to certain rules depending on the Turkish Commercial Code and the company's articles of association. Shares can be registered or bearer shares. The transfer of registered shares is made by endorsement and recording in the share ledger, unless otherwise provided in the company's articles of association. However, the company may have the right to approve the share transfer or make it subject to certain conditions. The transfer of bearer shares is freer and only requires physical delivery. With the regulation made in 2021, the transfer of bearer shares must be notified to the Ministry of Commerce. After the share transfer is completed, the new shareholder can start exercising their rights and participate in the company's management. You can visit the web address https://www.solmazlaw.com/project/ticaret-ve-sirketler-hukuku/ to learn more about Joint Stock Companies Law.
How Does the Liquidation Process of a Company Work According to Joint Stock Companies Law?
In joint stock companies law, profit distribution is carried out by a general assembly resolution after the year-end financial statements are prepared. After the company's net profit for the period is determined, the legally required reserve funds are first set aside. Then, the first dividend is distributed at the rate specified in the company's articles of association. If the board of directors or the articles of association do not decide otherwise, the remaining amount can be distributed to the shareholders as a second dividend. The date and method of profit distribution are also decided at the general assembly. In joint stock companies law, the liquidation process begins with the general assembly's resolution to liquidate. The fact that the joint stock companies law has entered into liquidation is registered in the trade registry and announced. During the liquidation process, the company pays its debts and collects its receivables. Liquidation officers convert all of the company's assets into cash and make payments to creditors. After the debts are paid, the remaining assets are distributed to the shareholders in proportion to their shares. When the liquidation is completed, the company's registry record is deleted, and its legal personality ceases to exist. If payments are not made to creditors during the company's liquidation process, shareholders and managers may be subject to legal liability.
