The Law amending Certain Laws to Improve the Investment Environment was recently published in the Official Gazette. In order to boost Turkey's investment environment, the law has introduced notable changes to a number of different laws, including the Law on Movable Pledges in Commercial Transactions.
Amendments were recently introduced to the Commercial Code with the aim of fostering investment in Turkey following recent political instability and the resulting uncertainty among investors. The amendments to the Commercial Code seek to expedite incorporation procedures for companies, reduce the relating notary public costs and foster transparency.
Under the Attorneyship Law, joint stock companies with a share capital of TRY250,000 or more must have an attorney; violation of this legal obligation will result in significant administrative fines imposed by public prosecutors. Compliance with the law is recommended not only to avoid administrative fines, but also to ensure that companies and their operations are built on legally supported and evaluated grounds.
Under the Law on the Mandatory Use of the Turkish Language by Commercial Enterprises, transactions, correspondence and agreements executed in Turkey must be in Turkish. While it is common practice to execute transaction documents in foreign languages, the law is still honoured by Turkish courts. Turkish and foreign companies should therefore be aware of the legal consequences of non-compliance.
The Communique on the Procedures and Principles regarding the Application of Article 376 of the Commercial Code recently came into force. It determines the procedures and principles that will apply to certain companies (ie, joint stock companies, limited liability companies and limited partnerships whose capital is divided into shares) in cases of capital loss and insolvency.