Calculation Of Goodwill Compensation Under Turkish Law

New Turkish Commercial Code ("TCC") has regulated the portfolio compensation, which was formerly applied by Supreme Court decisions, under the name of Equalization Claim and defined some rules in relation to such payable amount. However, TCC or secondary legislation do not expressly define how the calculation will be made and therefore the calculation method constitutes an important issue in practice.

It is disputed by academics if the Equalization Claim defined by TCC is compensation or if it is a remuneration paid under the agreement in consideration of an act performed. While some argue that it is compensation/indemnification, some argue that it is an equalization claimed under the agreement. Although the word "indemnification" is used in TCC, when it is interpreted together with the law's preamble it should be acknowledged as a wider payment made as required by equity instead of a typical indemnification of losses and damages. Therefore the same point of view