Author: Att. Ozgur Kocabasoglu
The Communiqué on the Principles Regarding Security Investment Companies (III-48.5) (“Communiqué”) published in the Official Gazette dated 27.05.2015 and numbered 29368. The Communiqué abolishing the Communiqué on the Principles Regarding Security Investment Companies (III-48.2) sets forth provisions on Investment Companies with Variable Capital (“ICVC”) for the first time in Turkish law.
The Communiqué regulates the investment companies with fixed capital and also introduces provisions on those with variable capital. Except for regulating investment companies with fixed capital, the Communiqué regulates the establishment and shareholders, issuance of the shares, transfer and redemption of founding shares, redemption of the investment shares, the required qualifications of the holders of the founding shares and directors, governance principles, activity principles, restriction regarding portfolio, custody and utilization of the assets of the portfolio, liabilities on public disclosure and informing investors, distribution of the dividends, liquidation and dissolution of the ICVC, and transformation of investment companies with fixed capital to the ICVC, along with the principles and procedures regarding other relevant liabilities. Art(s). 50 and 51 of the Capital Markets Law (“CML”) provides certain principles regarding the ICVC; however, the Communiqué sets forth detailed provisions on security investment companies with variable capital. We will assess these reforms adopted by the Communiqué in general in this newsletter.
