The Turkish Ministry of Trade has regulated the procedures and principles of notification and registration of bearer share certificates to the Central Registry Agency (the "Agency") by issuing the Communiqué on Notification and Registration of Bearer Share Certificates to the Central Registry Agency (the "Communiqué") which was published in the Official Gazette on 6 April 2021. The Communiqué further determines the procedures and principles for issuing the shareholders' chart that are to be provided by the Agency.
The highlights of the Communiqué are as follows:
- Bearer share certificates can be printed based on a board decision once all share prices are totally paid.
- The board decision and details of the bearer shareholders to whom each certificate will be distributed should be notified to the Agency by the persons authorized to represent the company. This notification should also include the company's contact information.
- Transfer of bearer share certificates can only take effect once the transferee by way of the transfer of possession notifies the Agency.
- The records about the notifications regarding the bearer shareholders and their shares are kept electronically by the Agency.
- The records kept by the Agency in accordance with the Communiqué are confidential.
- In the event of failure to notify the Agency, bearer shareholders cannot use their share related rights arising from the Turkish Commercial Code until the relevant notification is made.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
