23 September 2020
Provisional Article 13 has been added to the Turkish Commercial Code numbered 6102 (the “TCC”) by virtue of the Law on Reducing the Effects of the New Coronavirus (Covid-19) Outbreak on Economic and Social Life and the Law on the Amendment of Certain Laws numbered 7244, which was published in the Official Gazette dated 17 April 2020 and numbered 31102. With such article, following restrictions have been imposed on the dividend distribution of the companies regarding the 2019 financial year within the agendas of general assembly meetings that are held in 2020 until 30 September 2020: (i) previous years’ profits and free reserved funds shall not be subject to distribution; (ii) maximum 25% of net profit for the period of 2019 shall be distributed as a dividend; and (iii) board of directors shall not be given the authority to distribute dividend advance. According to the Presidential Decree numbered 2948 which has been published in the Official Gazette dated 18 September 2020 and numbered 31248, the duration of the restrictions on dividend distribution has been extended for three months. Within this framework, restrictions stipulated under Provisional Article 13 of the TCC shall continue until 31 December 2020.