Long lasting rules of determining representation powers and bank
mandates in corporations i.e joint stock companies (AS), for third
party transactions are being re-shaped.
An amendment to the Turkish Commercial Code, numbered 6102
effective as of 01.07.2012 ("TCC") was issued on
19.09.2014 in relation to regulating the possible limitations,
monetary or scope wise, to the representation powers to be assigned
to especially company representatives.
Nevertheless, the new rules brought many discussions with
them.
WHAT ARE THE HISTORIC AND CURRENT MAJOR ISSUES RELATING TO
REPRESENTATION POWERS ORIGINALLY ASSUMED BY THE BOARD OF DIRECTORS
OF AN AS?
- What has been the long
lasting rule? The management and
representation of a an AS has always been with the
board of directors (BoD) and it has been legally possible for the
BoD to delegate its management power (decision making) and
representation power (binding the corporation against 3rd parties)
in part or in full to
