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ARTICLE · 10 DECEMBER 2015

Distribution Of Interim (Advance) Dividends

Ersoy Bilgehan
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The Turkish Code of Commerce ("TCC") Art.509 on dividends provides that, while the dividends can be distributed from net period profits and free reserves, the distribution of "advance dividends" shall be regulated...

TurkeyCorporate/Commercial Law
Ilknur Peksen
Ilknur Peksen
Aysegul Bogrun
Aysegul Bogrun
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The Turkish Code of Commerce ("TCC") Art.509 on dividends provides that, while the dividends can be distributed from net period profits and free reserves, the distribution of "advance dividends" shall be regulated by a communiqué to be issued by the Ministry of Customs and Commerce. This communiqué shall apply to those joint stock companies not subject to the capital markets regulations, limited liability companies and limited partnerships divided into shares. The relevant Communiqué on Distribution of Advance Dividends (the "Communiqué") was published in the Official Gazette on 09.08.2012 and provides the following:

The requirements for distribution of advance dividend: The company's general assembly shall resolve on the advance dividend distribution, AND the company shall have achieved profits according to the accounts of the interim financial statements of 3, 6 or 9 months periods, regarding the fiscal period in which advance dividend will be distributed. There

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