Corporate and M&A

Author: Att. Suleyman Sevinc

Introduction

Ordinary partnerships, as regulated by Article 620 et seq. of the Turkish Code of Obligations numbered 6098 (“TCO”), are a type of a partnership in which two or more persons undertake to combine their endeavors and assets in an effort to achieve a certain purpose. Partnerships that are not vested with a legal personality that do not meet the distinguishing criteria of partnerships, and which are regulated under specific legal provisions, are deemed to be ordinary partnerships.

Unless otherwise contractually agreed to, the contributions of the partners of ordinary partnerships should be equal and in the character and significance as required by the goal of such partnership[1]. These are two consequences of terminating ordinary partnerships, and are the finality of managers’ duties and liquidation of the ordinary partnership. The liquidation procedure of ordinary partnerships is regulated under the TCO. Through its recent precedents, the Court of Cassation introduces issues to take into consideration by the courts in the liquidation procedure of ordinary partnerships in addition to the provisions of the TCO. This article analyzes the liquidation procedure of ordinary partnerships.

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