Procedures, Principles And Exceptions For Limitation On Dividend Distribution (Covid-19)

On 31.03.2020, an announcement was made by the Ministry of Trade ("Ministry") to limit the dividend distribution decisions to be taken at the shareholders meetings to be held for 2019 fiscal year. Although the underlying reason for the related announcement was to protect stock companies, this announcement had been subject to various critics at the doctrine since the amendment made by virtue of this "announcement" was making an amendment on the Turkish Commercial Code and this was not in line with the general principles of law. These critics are now revoked by the new amendments brought via the Commuting the Effects of New Coronavirus (Covid-19) Outbreak on Economic and Social Life and Amending Certain Laws numbered 7244 ("Law No. 7244") and the Communiqué on the Procedures and Principles Regarding Implementation of Provisional Article 13 of the TCC ("Communiqué").