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Funds to be added to the Share Capital of Companies and
Re-Assessment of Fixed Assets
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Att. Berna Asik Zibel
Provisions of the New Turkish Commercial Code on Capital
Increase from Internal Sources
Article 462 of the new Turkish Commercial Code numbered 6102,
which entered into force on 01.07.2012 (“NTCC”) sets forth the pro-
visions regarding the authorized capital increases through addition of
internal sources to the capital. As per this article;
- capital reserve funds, which are set aside for contingencies but
not allocated for a special purpose,
- the parts of the statutory reserves which can be freely disposed
and
- the funds, which are permitted by the law to be indicated in the
balance sheet and to be added to the capital;
may be converted into share capital and the share capital can be
increased by utilizing those internal sources.
In the event that the company has funds which are permitted by the
law to be added to the share capital; the share capital cannot be
increased by means of subscription.
According to the procedure, the amount, which will cover the
increased part of the share capital, should be attested with the approved
annual balance sheet and a clear written statement given by the board
of directors. If more than six months passed from the date of the bal-
ance sheet, a new balance sheet shall be issued and approved by the
board of directors. The capital increase becomes final upon the regis-
tration of the general assembly and board of directors resolutions and
the amended articles of the articles of association to the related trade
registry. As per the last paragraph of article 462 of the NTCC, the cur-
COMMERCIAL LAW
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Article of August 2012