Turkish commercial Code legislates regarding doing business Turkey and the process of company dissolution in Turkey . The liquidation decision of a company can be registered by the board of directors or authorized court announcing there is no reason to doing business Turkey . The dissolution decision may take into consideration to obtain certain purpose mentioned in the article of association such as some terms which is written are not available being expired in the articles, the decision of the board of directors which the company no more reaching their request or a claim of bankruptcy. The dissolution of the company can be voluntary (as a result of the company’s board of directors decision) or obligatory (as a result of a Court request).
When the board of directors decide to company liquidation (or doing business Turkey) during the general meeting, then a liquidator have to be nominated to represent the company legal entity being responsible during all process. The name of the company and its details and the reason must be registered at the Turkish trade registry office. The board of directors have an authority to discharge the liquidator or determine what power the liquidator would have. in the event of a mandatory dissolution, the court have to determine a liquidator in Turkey while has the power to discharge or expel in force major. The liquidator must prepare company status in details regarding a balance sheet and an inventory statement and submit them in general meeting where they have to be approved and accepted. If they are accepted, the liquidator can commence the process. The liquidator is investigate the documents being informed the creditors in terms of the liquidation process. He is also deciding the specific terms if depositing the claims. The creditors are then submitting their claims and if it doesn’t do it on time the amount necessary to cover their claims is deposited to an administrative authority appointed by the liquidator. An intermediary balance sheet and reports regarding the liquidation status must be elaborated and presented at the annual general meetings. The remaining assets resulted after covering all the claims can be divided among the shareholders, up to their contribution to the company’s capital. After that, a last general meeting is convened and the last balance sheet and a report regarding the termination of liquidation and its results are presented by the liquidator. The decision is then registered at the Trade Register and the name of the company is permanently deleted from it. The liquidator have to also appoint an individual which all the company’s documents will be kept for a period of minimum 10 years. The name and the address of that person must be mentioned in the application sent to the Turkish Trade Registry. After that, the liquidator is paid for his work and it’s dismissed.
It usually takes one year or more to liquidate a company in Turkey, depending on its size and the complexity of its debts and doing business Turkey. If you need legal services related to company liquidation, you may Contact Our Legal Firm in Turkey or about doing business Turkey