Group companies had substantial importance in Turkish commercial
and legal world with their existence without any normative rule
under legislation. Therefore, the legislative aimed to fill this
significant gap with set of provisions, which has been introduced
under Article 195-210 of the Turkish Commercial Code numbered 6102
entered into force on 1 July 2012 (the
'TCC' or the
'Code'). One of the most radical changes
brought by the TCC is the liability of the parent company within a
group, arising from the trust, as described under Article 209 of
the TCC.
According to the relevant article, the parent company shall be
liable from the trust which is based on its reputation, provided
that such a reputation attains a level where it inspires trust to
the consumers and the community. The level of this reputation shall
be evaluated along with the circumstances of each case1.
