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ARTICLE · 19 AUGUST 2011

Conducting Share Buy-Backs: A Dilemma For ISE Listed Companies

Eryurekli Law Office
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The CMB, in response to the global economic turmoil and recent fluctuations observed in the ISE, has revised the principles applicable for share buy-backs and paved way for all ISE Listed Companies to conduct share buy-back programs.

TurkeyFinance and Banking
Eryürekli Attorney Partnership
Eryürekli Attorney Partnership
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The CMB, in response to the global economic turmoil and recent fluctuations observed in the ISE, has revised the principles applicable for share buy-backs and paved way for all ISE Listed Companies to conduct share buy-back programs. The Resolution brings the currently applicable legal framework in line with the share buy-back rules of the New Turkish Commercial Code (the "New TCC") which will be in force as from 01.07.2012 and, rather surprisingly, broadens the type of companies which may utilize the so-called share price supporting process.

Fundamental Aspects

Under the new framework, it is possible for all type of ISE Listed Companies to purchase their shares up to %10 of their paid up/issued share capital provided that they are authorized through their general assemblies. However, board of directors (the "BoD") of those companies may conduct share buy-backs without a general assembly authorization in case there is a reasonable cause to do that. The Resolution

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