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ARTICLE · 27 FEBRUARY 2025

Significant Developments In The Implementation Of The Turkish Commercial Code In 2025

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Existing Facilitations for Capital Loss and Over-Indebtedness Calculations are Extended until 2026...

TurkeyCorporate/Commercial Law

Existing Facilitations for Capital Loss and Over-Indebtedness Calculations are Extended until 2026

Article 376 of the Turkish Commercial Code numbered 6102 (the "TCC") regulates the measures to be taken and the precautions to be implemented by the board of directors of the company, and the procedures to be followed in cases where the company suffers capital loss or becomes over-indebted, to ensure the protection of the financial structure of the company and to secure the rights of creditors of the company.

The Communiqué on the Procedures and Principles for the Implementation of Article 376 of the Turkish Commercial Code numbered 6102 (the "Communiqué"), published on September 15th, 2018, further details the implementation of the relevant article. One of the most striking aspects of the Communiqué is the exemption granted under Provisional Article 1 regarding the calculation of companies' capital loss and over-indebtedness. According to this exemption, the

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