Full Division Process Under The Turkish Commercial Code

The division process is regulated under Articles 159 to 179 of the Turkish Commercial Code (“TCC”), and no direct definition of division is provided in the law. In addition to these articles, Articles 191, 192 and 193 of the TCC, the Capital Markets Law (“CML”), the Capital Markets Board Communiqué II/23.2, and Articles 18 to 20 of the Corporate Tax Law (“CTL”) are also applicable to the division process. The division process is the exact opposite of company mergers and is specific to the law of partnerships.

Valid divisions are subject to the principle of numerus clausus under Article 160 of the TCC, and according to the article, capital companies may divide into capital companies and cooperatives, while cooperatives may divide into cooperatives or capital companies.