Conditional Capital Increase System As A New Corporate Financing Structure

I. Introduction

Turkey is in the long lasting process of renewing and transforming its commercial laws and regulations to its fast changing and growing financial markets. Without any doubt the surmountable attempt of adopting a completely new Commercial Code ranks top among the many legislative changes that have recently been made. The current Turkish Commercial Code ("TCC"), which was enacted in 1957 was in some respects insufficient to meet the legal challenges brought by the complex financial structures of today. Therefore, a new Commercial Code becoming effective as of July 1, 2012 (the "New Commercial Code") was prepared after a five-year effort together with active contributions from professional organizations, universities, and NGOs. The goal is to meet the demands of contemporary commercial life, respond to today's business requirements and achieve compliance with the standards and regulations as generally applicable in the EU.