Draft Commercial Code Still Pending - But Help Is On The Way

The Turkish Commercial Code (the "TCC") was enacted in 1956, and governs commercial transactions, as well as the establishment and governance of capital stock companies and sole proprietorships. Therefore, although the legislature has from time to time introduced amendments in response to changed circumstances and urgent needs, it is clear that the TCC is inadequate in meeting the legal and commercial demands of contemporary commercial and corporate life. Accordingly, in order to harmonize Turkish commerce with globalization, the government prepared a draft commercial code (the "Draft") for discussion in 2005. The Draft has been accepted by the Justice Commission and is still pending before the Turkish Grand National Assembly, but may be enacted in 2008.