Recent Development
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.
Procedures and Principles the Communiqué Introduced
– The Communiqué clarifies which financial
statements must be considered for the dividend
calculation.
In calculating dividends, the Communiqué regulates
that:
- companies that are obligated to prepare their financial
statements in accordance with the standards defined by the Public
Oversight Accounting and Auditing Standards Authority must take the
financial statements prepared in accordance with Article 88 of the
TCC into account; and
