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Articles contributed by Paksoy
The main legislation regarding the banking industry in Turkey is the Turkish Banking Law No. 5,411 (‘the Banking Law’), the Turkish Central Bank Law No. 1,211 (‘the Central Bank Law’), the Turkish Capital Markets Law No. 2,499 (‘the Capital Markets Law’), the Law on the Protection of the Value of Turkish Currency No. 1,567, the Decree Law on Money Lending Transactions No. 90, and the regulations promulgated under these laws.
Scope of Employment Regulation
1. Do the main Laws that regulate the employment relationship apply to:
* Foreign Nationals working in your Jurisdiction?
* Nationals of your Jurisdiction working abroad?
To glean an insider’s insight into the issues of litigation and arbitration across the world, Lawyer Monthly also speaks to Serdar Paksoy, the founding and senior partner of Paksoy, a full-service law firm in Istanbul, to find out about these issues in Turkey. Paksoy provides services in all major practice areas including litigation and arbitration, competition law, banking and finance, capital markets, corporate and commercial, mergers and acquisitions, privatisations, and real estate.
A dynamic, stable and attractive economy paralleled with structural reforms, a young and skillful workforce, as well as its location as an international hub make Turkey a favourable jurisdiction for doing business; and as such, it attracts all manner of investors from around the world.
Legal and regulatory areas of concern come and go in their perceived importance. It is, however, very difficult to recall any other occasion when a subject regarded by many lawyers as so obscure and arcane as international banking regulation has come to such prominence in such a short period of time.
Since 2007, the Turkish government has been working on a mediation model for the settlement of disputes. The Draft Law on Mediation of Civil Disputes (the "Draft Law") is currently pending for the review by the justice sub-commission of the Turkish Parliament. Following the review of the sub-commission, the Draft Law will be voted on in Parliament in order to be enacted.
Market competition is regulated in Turkey by the Competition Law enacted on 7 Decem-ber 1994. The regulatory authority is the Competition Authority and the decision-mak-ing body is the Competition Board. The Com-petition Law has three pillars: (i) agreements, decisions and practices preventing, distort-ing or restricting competition in markets for goods and services; (ii) abuse of dominance by the undertakings dominant in the market; and (iii) the control of mergers and acqui-sitions that could lead to the creation or strengthening of a dominant position.
On 2 September 2009, the Turkish Capital Markets Board (the “CMB”) promulgated a new set of rules on tender offers relating to public companies. The new tender offer rules replaced the earlier CMB regulation on the matter, and introduced important changes on mandatory offers, terms of offers, minimum offer value, payment of consideration, voluntary offers, rules, procedures and principles to be complied with, and so on.
The Turkish legal system is a civil code system. Parties may obtain an injunction from the courts upon depositing sufficient collateral, but the injunction can be lifted during the hearings upon a reasonable claim from a counterparty. Following the establishment of an injunction over real estate, such real estate cannot be transferred until the lawsuit is concluded or the injunction lifted. Parties are theoretically free to enter into oral contracts; however, evidence of such relationship may be difficult to establish before the courts since the rule of written evidence is applicable under Turkish Civil Procedure Code and therefore, oral contracts are not practical. Moreover, in certain situations, execution of a written contract is a legal requirement such as in real estate sales.
On the Republic of Turkey’s Privatisation agenda in 2008 is the Privatisation of toll motorways and bridges. Privatisation in Turkey not only aims to minimise state involvement in economic activities, but it also aims to increase productivity and add value to the economy by ensuring more efficient organisation and management of enterprises that should be commercialised to be competitive in the market.