Battle Of Collateral: The Share Pledge v. The Usufruct Right

The purpose of this article is to review current Turkish law that impacts shareholders' rights and usufruct rights. Turkish law provides shareholders of a joint stock corporation with certain, fairly typical rights as are found in virtually all corporate codes throughout Europe and North America. These include voting rights in general assembly of shareholders meetings, rights to collect dividends, pre-emptive rights, the right to subscribe for new shares, and the right to collect liquidation proceeds. While some of these rights are strictly attached (i.e. personal) to the shareholder, some of them are also available to pledges of shares or usufruct rights holders.