Communiqué on Distribution of Dividend Pertaining to 2019 has entered into force

The Communiqué (“Communiqué”) on Procedures and Principles of Implications of Provisional Article 13 of Turkish Commercial Code No. 6102 entered into force through publication in the Official Gazette dated 17.05.2020 and numbered 31130.

Through the Communiqué, certain exceptions regarding the limitations on distribution of dividend pertaining to 2019 under the Provisional  Article 13 of Turkish Commercial Code No. 6102 (“TCC”) are introduced.

In this regard, companies falling under the scope of the exceptions foreseen by the Communiqué, without being subject to the provisions of Provisional Article 13 of the TCC may distribute the exceeding portion of 25% of its net profit pertaining to 2019 following obtaining approval of the Ministry of Commerce through an application to be made.

Furthermore, the financial statements to be taken as a basis in calculation of the dividens are also regulated under the Communiqué.

Please find the Turkish version of the Communiqué here.