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NEWSLETTER 2011
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The Mandatory Provisions of the Rules in Section IV (Board of
Directors)
The companies traded in the ISE 30 Index (excluding banks) are
obliged to apply the following principles:
Pursuant to article 3.3.1., at least 1/3 of the members of board of
directors shall be independent board members. The fractions shall be
completed to the following number.
Pursuant to article 3.3.4., a member who served for 6 years in the
board of directors cannot be appointed as the independent board member.
According to article 3.3.5., a member with the following criteria shall
be deemed as an ‘independent board member’:
i. No employment, capital or commercial relationship, direct or
indirect, shall have been formed between the company, a person
related with the company or with the legal entities having a
management or capital interest by the shareholders holding 5%
(direct or indirect) in the company and the member or any spouse
or persons with blood or affinity relationship (to the third degree)
for the last 5 years,
ii. Shall not have been appointed to the board for the representation
of a share group,
iii. Shall not have been employed in the firms conducting the business
and organization of the company, in whole or in part, especially
audit firms or consulting firms, and shall not have served as a
director in such companies for the last 5 years,
iv. Shall not have been employed in the independent audit firm or
shall not have been involved in the auditing service for the last 5
years.
v. Shall not have been employed in the companies who supply
significant services or products to the company and shall not have
served as a director in such companies for the last 5 years,
vi. Any spouse or persons with blood or affinity relationship (to the
third degree) shall not be a director to the company, and shall
not be a shareholder of the company holding more than 5% of