The Period of Restrictions on Distribution of Net Profit Pertaining to Year 2019 has been extended

With the Presidential Decree dated 17.09.2020 and numbered 2948 (“Presidential Decree”) published in the Official Gazette dated 18.09.2020 and numbered 31248, it has been resolved to extend the period specified in the first paragraph of the Provisional Article 13 of the Turkish Commercial Code numbered 6102 (“TCC”) for three months.

With the Provisional Article 13 added to the TCC on 16.04.2020, it was regulated that the capital companies may only resolve to distribute up to 25 % of their net profit pertaining to year 2019, profits of the previous years and voluntary reserves cannot be distributed, and that the general assembly cannot authorize the board of directors to distribute advance dividend until 30.09.2020.

With the aforementioned Presidential Decree, the period of the restrictions on the distribution of net profit pertaining to year 2019 has been extended from 30.09.2020 to 30.12.2020.

Please find the Turkish version of the Presidential Decree here.