Bearer Temporary Share Certificates Issued As A Substitute For Bearer Share Certificates

A share certificate is a written instrument signed on behalf of a company, and serves as legal proof of ownership of the number of shares indicated. Within the framework of the Turkish Commercial Code, companies are not legally obligated to issue share certificates. However, in practice, share certificates are issued mostly to gain corporate tax and value added tax advantages. Bearer temporary share certificates may be issued in lieu of bearer share certificates and such bearer temporary share certificates will remain valid until the issuance of bearer share certificates. Holders of bearer temporary share certificates enjoy all ownership rights associated with the shares such certificates represent. Principles set forth for bearer share certificates are mostly preserved within the framework of the New Turkish Commercial Code with some significant amendments and developments.