New Resolution From The Capital Markets Board: Significant Changes In Share Buyback Processes

The Capital Markets Board has introduced significant changes to support the efficient functioning of capital markets and enhance companies' ability to adapt to market conditions.

Companies whose shares are traded on the stock exchange and their affiliates will now be able to initiate a share buyback program through a board of directors' decision. Previously, share buyback programs required a general assembly resolution; however, under the new regulation, companies only need to inform shareholders at the first general assembly meeting.

The board of directors' resolution must outline the purpose of the buyback, its duration, the maximum number of shares to be repurchased, and the maximum amount of funds to be allocated. This resolution must be publicly disclosed in accordance with material event disclosure requirements. Existing buyback programs may continue without requiring an additional board resolution.