Liquidation in Turkey
The company will be terminated in accordance with the legal reasons for termination and the decision of the shareholders. The terminated company will then begin the liquidation process. This will be reflected in the trade registry directorate, and the company will be known as “in liquidation.”
The purpose of liquidation is to sell the company’s assets, collect outstanding debts, pay off any liabilities, and complete any unfinished business. The liquidation process will be managed by liquidation officers, at least one of whom must be a Turkish citizen and resident in Turkey. These officers may be appointed by company agreement or general assembly resolution, and their appointment must be registered and announced in the trade registry.
Creditors will be informed of the liquidation by registered letter, and other creditors will be notified through three announcements in the Turkey Trade Registry Gazette, the company’s website, and in accordance with the articles of association. The liquidation officers will prepare financial statements at the end of each year and present a final balance sheet to the general assembly at the end of the liquidation.
Once the company’s debts have been paid and shareholders have received their returns, any remaining assets will be distributed among shareholders based on their paid-in capital and privilege rights, unless otherwise stipulated in the articles of association. In the event of a concession in the liquidation share, the regulations in the articles of association will apply.
Distribution of remaining assets will not occur until six months have passed since the date of the third announcement to creditors. Upon the completion of liquidation, the liquidation officers will apply to the trade registry directorate to have the company’s trade name removed from the register. This will mark the end of the company’s legal entity.
In the event of bankruptcy, liquidation will be carried out by the bankruptcy administration in accordance with the Enforcement and Bankruptcy Law.