Opening a company in Turkey implies of set of steps and requirements to be fulfilled. Among the condition foreign investors must abide by is the
appointment the directors or managers of the business, who will form the
company management. The
Commercial Code in Turkey provides for the
management of public and private companies through Articles 623 to 631. The Articles of Association of the company will also establish the
responsibilities of company managers in Turkey. It must be noted that requirements, roles and responsibilities of the management differs in private and public companies in Turkey. Our
company registration agents in Turkey can offer information on the provisions of
the Commercial Law related to
company management.
Appointing company managers in Turkey
The
company management of a Turkish company is appointed during the general assembly of the shareholders. The directors or managers nominated must accept their functions in writing followed by their inscription in the
Turkish Companies Registrar.
Starting 2013 when the new Company Act was enabled, shareholders are allowed to
appoint a board of directors comprised of at least one Turkish resident. Another change related to
company management in Turkey refers to the fact that a legal entity may be part of the
board of directors starting 2013. The new Company Law also introduced the concept of
professional board of directors, our
Turkish company formation consultants can offer details about.
The duties and powers of company directors in Turkey
The first and most important
duty of a Turkish company’s management is the fiduciary one, which refers to acting in the best interest of the shareholders and the company. The Company Act provides for the
powers of directors in Turkey in Articles 371 and 623, as it follows:
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- to amend the company’s statutory documents;
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- to appoint board members;
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- to liquidate the company;
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- to issue financial statements;
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- to sell the company’s assets;
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- to determine the company’s profits.
Do you need a
team of accountants in Turkey? We advise you to contact our specialists and discover the services offered. We can help you with payroll services, audits, bookkeeping, annual financial statements, tax registration, debt monitoring, and more. If you plan investments in the company and beyond, you can receive dedicated consultancy. We can also prepare complete financial reports to know how the company is positioned from a financial point of view.
The company’s management is required to carry out their duties with due diligence and act in good faith.
If you want to
open a company in Turkey and need more information on the
appointment of directors, please feel free to
contact our
company incorporation representatives.