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.
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 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:
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.