- Introduction
Companies, for various reasons such as tax benefits, liabilities
and as may be required by authorities, may decide to change their
legal types. Turkish corporate law allows companies to change their
types in accordance with Article 181 of the Turkish Commercial Code
No. 6102 (the "TCC") which sets forth
which company types are allowed to convert into another.
As per the relevant provisions, companies change their legal
type without transferring or making any changes in assets while
keeping the economic unity and continuity of shareholders shares
and rights. In the same vein, the new entity shall take up the old
entity's place. So, merely "the shell" of the company
will be changed.