BASIC PRINCIPLES ABOUT THE MANAGEMENT OF A JOINT STOCK COMPANY IN TURKEY

Abstract

Board of directors (BOD) is one of the legal bodies of the joint stock company that has the authority to direct and represent the company. The new TCC lets the formation of the BOD of a joint-stock company with the existence of even one single member which means that board of directors may be constituted solely by one member. The new TCC also gives opportunity to employ professionals in the board and elect legal entities as BOD members. Joint stock companies may also have insurance for the members of the board of directors as a guarantee for the damages and losses they may cause related to their duties. On the other hand, foreign real and legal persons can establish a joint stock company in Turkey and may elect themselves or other nonTurkish citizens and residents as members of the BOD, which mean that they can direct their company without leaving their country of origin. Due to the technological advances, the new TCC allows electronic signature usage and online meetings, too. In short, the New TCC enables the management of a joint-stock company easier and more efficient than before. The new TCC also redefines the meeting and decision quorum of BOD so as to let the management and representation of the company drastically. We will discuss this topic in our following article.