Determination Of Exit Share Value In Termination Of Partnership Lawsuits Under Turkish Commercial Code

1. Termination of Partnership Lawsuits in General

Pursuant to Article 531 of the Turkish Commercial Code ("TCC") numbered 6102, the owners of the shares representing at least one tenth of the capital and one twentieth in public companies have been given the right to request the termination of the company in the presence of justifiable reasons. With this regulation, minority shareholders are given the opportunity to intervene against the misuse of the management by the majority shareholders who are dominant in the joint stock company.

Minority shareholders who meet the minimum share ratio stipulated in Article 531 of the TCC can directly file a lawsuit against the legal entity of the joint stock company in the commercial court of first instance where the company headquarters is located. Although the TCC does not set forth include a time limit for termination for a just cause, the Court of Appeal's Court Decisions are that the lawsuit must be filed within a