Jouissance Shares For The Founders In Turkish Commercial Code

Introduction

Jouissance shares are the securities, different from the share certificates, which do not provide its holder with any shareholder right but which carry some financial rights. Art. 503 of the Turkish Commercial Code numbered 6102 ("TCC") clearly points that the holders of jouissance shares cannot be provided with shareholders rights.

The jouissance shares, in general, are regulated in art. 502 of the TCC. Pursuant to this article, the general assembly may decide to issue jouissance shares in accordance with the articles of association or by amending it, in favor of the creditors, the holders of the shares which value is legally paid off or similar relevant persons to the company. These jouissance shares may be issued to the order of someone specific or to the order of the bearer.