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ARTICLE · 26 FEBRUARY 2014

Domination Agreements

Group companies are regulated for the first time under the Turkish Commercial Code No. 6102.

TurkeyCorporate/Commercial Law

Introduction

Group companies are regulated for the first time under the Turkish Commercial Code No. 6102 ("TCC"). Although no definition of group companies is specified, its types and principles are expressed in the TCC. Group companies come into existence when there is more than two commercial companies that are directly and indirectly affiliated with a commercial company or an enterprise. In such cases, the parent company constitutes the dominant company and the dependent companies constitute the subsidiary companies.

The concept of dominance has been introduced with the regulation of group companies. Dominance may be established through shareholding, contractually and in other ways. This newsletter article treats contractual dominance and domination agreements, which establish such contractual dominance.

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