D&O Liability Insurance Under The New Turkish Commercial Code

Directors and officers are increasingly exposed to investigations, regulatory enforcement actions and lawsuits which press demand for Directors and Officers Liability Insurance (D&O Insurance). As a result D&O Insurance is increasingly regarded as essential insurance protection for companies' decision makers. Many directors regard adequate D&O protection as a prerequisite for serving on board.

Repealed Turkish Commercial Code numbered 6762 of 1956 did not regulate D&O Insurance. With the entry into force of the new Turkish Commercial Code numbered 6102 (Code) in July 2012, a major step was taken for the modernization of Turkish corporate law and introduction of corporate governance reforms. As one of the crucial pillars of this modernization process, D&0 Insurance has been introduced under Article 361 of the Code.