Prohibition on hidden income shifting is one of the most
important issues that is broadly regulated under Capital Markets
Law No. 6362 ("CML"). In conjunction with CML Article 21,
which has a broader context than Article 15 of the abrogated
Capital Markets Law No. 2499, another significant step has been
taken regarding one of the most primary aims of the Capital Markets
Board ("CMB" or "Board"), a public regulatory
authority, which is to provide protection on the rights of
shareholders of public companies.
By virtue of the managerial abuses of joint stock companies that
are subject to the capital markets legislation, the prevention of,
particularly, the potential damages of the shareholders/minority
shareholders, apart from the persons or group which hold the
control of the company, in other words, the account owners who are
capital market investors, is the primary purpose of the CML, and
one of the preeminent duties and authorities of the
CMB1.
