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ARTICLE · 07 MAY 2013

Squeeze Out Right: Two Laws, Different Rules

A summary on the first legal basis for the squeeze out right in Turkish Law.

TurkeyCorporate/Commercial Law

The "squeeze out right", which has a longstanding presence in the international legal system, has been introduced into Turkish law for the first time with the new Turkish Commercial Code No: 6102 (''TCC''). Along with the TCC, the new Capital Markets Law No: 6362 (''CML''), which was enacted in December 2012, also regulates the squeeze out right for publicly held companies. Since there are fundamental differences between these two regulations, there may be some confusion from a practical point of view.

In this article, first the legal basis for the squeeze out right in Turkish Law will be summarized. Then the basic differences between the CML and the TCC will be analyzed. Finally, potential points of confusion will be evaluated for future consideration.

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