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ARTICLE · 21 JANUARY 2021

New Regulations Introduced On Bearer Share Certificates

Several articles of the Turkish Commercial Code No. 6102 ("TCC") were amended with the Law No. 7262 published in the Official Gazette dated 31 December 2020.

TurkeyCorporate/Commercial Law

Several articles of the Turkish Commercial Code No. 6102 ("TCC") were amended with the Law No. 7262 published in the Official Gazette dated 31 December 2020. The amendments (1) authorize the Ministry of Trade to oblige companies to hold their corporate books (i.e. share ledger, resolution books of the board and the shareholders' meetings) electronically and (2) bring new regulations for bearer share certificates. The former entered into force on the date of publication in the Official Gazette, whereas the latter (concerning bearer share certificates) will take effect on 1 April 2021.

Mandatory Notification of Bearer Share Certificates to the Central Securities Depository

The amended article 489 of the TCC provides that any transfer of bearer shares will only become effective against the company and third parties once the transferee notifies the transfer of possession to the Central Securities Depository. If the said notification is not made, the transferee will

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