Recent Development
The dividend distribution limitation period was extended for an
additional three months pursuant to the Presidential Decision No.
2948 ("Presidential Decision") published
in the Official Gazette No. 31248 on September 18, 2020.
Within the scope of governmental measures taken due to COVID-19,
dividend distributions were limited and Provisional Article 13 was
added to the Turkish Commercial Code
("TCC"). The Communiqué on the
Procedures and Principles for the Application of Provisional
Article 13 of the Turkish Commercial Code
("Communiqué") was published in
the Official Gazette dated May 17, 2020 and No. 31130.
What Does the Presidential Decision Say?
The dividend distribution limitation was set to end on September
30, 2020, but was extended for an additional three months, until
December 31, 2020. The Presidential Decision granted this extension
based on the authorization provided by Provisional Article 13 of
TCC.
