THE MECHANISM FOR THE CAPITAL ADVANCE PAYMENTS HAS BEEN AMENDED
With the Turkish Commercial Code dated 13 January 2011 and numbered 6102 which was published in the Official Gazette dated 14 February 2011 and numbered 27846 and which has entered into force as of 01.07.2012, the mechanism on the share capital increase has been amended together with a legislation change in the capital movements circular of the Turkish Central Bank.
The amendment on the capital increase mechanism had an impact on the “capital advance” procedure that is usually implemented during the incorporation of companies or equity injection. Accordingly, the Central Bank of the Republic of Turkey has amended its Circular on Capital Movements (the “Circular”) by issuing a circular numbered 2013/YB-7 and removed the concept of “capital advance” from the Circular 2002/YB-1.