Corporate and M&A

Contact: Prof. Dr. H. Ercument Erdem; Erdem & Erdem (Turkey)

The liability of legal persons from public debts, and the determination of the scope of this liability are of great importance in practice, since it is possible that the public debts that cannot be collected from joint stock companies may be collected from the legal representatives of the company. This issue is analyzed in this article, in light of the relevant provision of Law no. 6183 on Collection Procedure of Public Receivables.

General

Reiterated Art. 35 of Law no. 6183 on Collection Procedure of Public Receivables ("Law no. 6183") regulates the collection of public debts of legal persons. Pursuant to this article, public receivables that may not be wholly or partially collected from the assets of legal persons, or that possibly may not be collectable from the assets of legal persons, shall be collected from the personal assets of legal representatives of legal persons, or of those who administer those unincorporated organizations, pursuant to the provisions of the relevant law.

Pursuant to this article, in the event public receivables cannot be collected from joint stock companies, legal representatives of such companies would be liable for these uncollectable debts with their personal assets.

Read the entire article.