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A REGULATION ABOUT THE DISTRIBUTION OF PROFIT SHARES OF THE COMPANIES /COVID-19

The Ministry of Commerce has published a communiqué in the Official Gazette about the distribution of profit shares for capital companies to protect their shareholders equity due to the Covid-19 virus. In the letter dated 31.03.2020 which is issued and transmitted to the Turkish Union of Chambers and Commodity Exchanges  (TOBB) by the Ministry, it has been pointed out that the importance of capital companies to protect their shareholders equity due to the Covid-19 virus and that the boards of the companies are given the authority to distribute the profit shares.

In the letter dated 31.03.2020 which is issued and transmitted to the Turkish Union of Chambers and Commodity Exchanges  (TOBB) by the Ministry of Commerce, it has been pointed out that the importance of capital companies to protect their shareholders equity due to the Covid-19 virus.

Within this framework, it has been stated that the previous year’s profits should not be subject to distribution, the distribution amount should not exceed 25% of the net profit of 2019 and the board of directors should not be authorized to distribute the profit share advances in the distribution of the cash profit shares decisions to be included in the agenda of the general assembly meetings to be held this year in relation to the fiscal periods of 2019 of the capital companies except for publicly-owned ones, based on Article 13/5 of the “Regulation on the Procedures and Principles of the General Assembly Meetings of Joint Stock Companies the Ministry of Commerce Representatives to be Attended in these Meetings” published in the Official Gazette dated 28.11.2012 and numbered 28481.


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