Corporate Law
In Turkey, the most common types of companies established under the law are limited liability companies and joint-stock companies. Each serves distinct purposes and attracts shareholders for various reasons. Limited liability companies often cater to smaller businesses and family-owned enterprises, whereas joint-stock companies are favored by larger enterprises and publicly traded companies.
There are numerous legal, financial, and structural disparities between limited liability and joint-stock companies. Some of the most notable differences include:
Capital Structure: Limited liability companies typically have simpler capital structures compared to joint-stock companies.
Management Structure: The management structure differs significantly between the two types of companies, affecting decision-making processes.
Profit Distribution: Profit distribution mechanisms vary between limited liability and joint-stock companies, influencing shareholder returns.
Share Transfer Procedures: Procedures for transferring shares differ, with distinct regulations for each type of company.
Additionally, legal requirements and responsibilities vary for each type of company, necessitating tailored legal guidance.
You can get more information by reading our article on the Differences Between Limited Liability and Joint Stock Companies.
Prohibition of Competition for Shareholders
A crucial distinction lies in the prohibition of competition for shareholders. While shareholders of limited liability companies are often restricted from competing with the company, the rules are less clear for shareholders of joint-stock companies. The debate on the prohibition’s applicability for shareholders of joint-stock companies is nuanced and contingent on factors such as industry dynamics, market conditions, and shareholder roles.
Corporate Law and Cooperation Agreements
Corporate law covers the creation, interpretation and enforcement of cooperation agreements between companies. These agreements cover a wide range of issues, including partnership agreements, shareholder agreements, purchase agreements and distribution agreements.
Baris Erkan Celebi, a lawyer in Turkey, provides comprehensive services in drafting and negotiating such agreements to ensure that clients’ interests are protected.
Our services include:
Incorporation of limited liability companies and joint-stock companies in Turkey
Legal support in management matters
Obtaining necessary permits for the company’s operations
Applying for and benefiting from state incentives offered to foreign investors in Turkey
For expert guidance and legal representation in navigating Turkish corporate law, contact us.
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