Newsletter-21

77 COMMERCIAL LAW Single Shareholder Joint Stock Companies* Att. Nilay Celebi Introduction As per Art. 338 of Turkish Commercial Code No. 6102, one or more shareholders may establish a joint stock company. Thus, the Turkish Commercial Code allows a joint stock company to be estab- lished by a single shareholder. In addition, a joint stock company that has more than one shareholder may be converted to a single share- holder joint stock company, provided it fulfills certain notification requirements. Establishment of a Single Shareholder Joint Stock Company Pursuant to Art. 338 of the Turkish Commercial Code, a single real or legal person may establish a joint stock company as the single shareholder. There is no difference between the incorporation of a sin- gle shareholder joint stock company and a multiple shareholder joint stock company in terms of documents to be submitted to the relevant trade registry. Notification on Single Shareholding A joint stock company may already be incorporated by multiple shareholders and may be transformed into a single shareholder com- pany. All shareholders may transfer their shares in the company to a third party, or some of them may transfer their shares to one of the shareholders who wishes to remain as a shareholder in the company. According to Art. 338/2 of the Turkish Commercial Code, in the event that the number of shareholders in a company decreases to one, the board of directors of the company shall be notified of this, * Article of March 2016