Provisions regarding the Turkey Wealth Fund under the Law No. 7244

The Law No. 7244 on the Mitigation of the Impacts of the Novel Coronavirus (COVID-19) Outbreak on Economic and Social Life and on the Amendment of Certain Laws (“Law”) entered into force through publication in the Official Gazette dated 17.04.2020 and numbered 31102.

The Law introduces certain amendments to the Law No. 6741 on the Establishment of Türkiye Varlık Fonu Yönetimi Anonim Şirketi and on the Amendment of Certain Laws (“Law No. 6741”).

With the change of the expression “june” as “august” under Article 6 of the Law No. 6741, reports to be prepared as a result of the audit of Türkiye Varlık Fonu Yönetimi Anonim Şirketi (“Company”), other companies to be established by the Company, Turkey Wealth Fund and sub-funds to be established under the Turkey Wealth Fund, shall be submitted to the President each year until the end of August.

In addition, an amendment was made to the fifth paragraph of Article 8 of the Law No. 6741 titled “Exemptions and Exceptions”. Accordingly, within the scope of the transactions that will provide, either solely or together with third parties, the control of Turkey Wealth Fund, the Company, sub-funds and companies established by the Company over other companies, Articles 23 to 27 of the Capital Markets Law No. 6362 (“CML”) regarding significant transactions of corporations, retirement right, takeover bid, obligation regarding takeover bid and squeeze out and sell-out rights as well as the secondary legislation enacted under the CML shall not apply to the parties to such transactions, their direct and indirect shareholders, subsidiaries, affiliates and controlled companies, limited only to such transactions.

Moreover, Article 202 of the Turkish Commercial Code No. 6102 regarding unlawful exercise of dominance shall not apply to the Turkey Wealth Fund, the Company, the sub-funds and other companies established by the Company as well as the companies over which direct or indirect dominance has been established in favor of the foregoing, either solely or together with third parties, and limited only to the transactions regarding establishment of such dominance, to the parties to such transactions, their direct or indirect shareholders, subsidiaries and affiliates.

You may find the Turkish version of the Law here.