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Advance Dividend
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Att. Nilay Celebi
Advance dividend is regulated under Turkish Commercial Code
numbered 6102 (“TCC numbered 6102”) and under the Communiqué
concerning Advance Dividend Distribution (“Communiqué”) pub-
lished in the Official Gazette on August 9, 2012. The communiqué
comprises companies which are not subject to Capital Markets Law,
limited liability companies and limited partnerships divided into
shares.
Pursuant to Article 5 of the Communiqué, for the distribution of
advance dividend by the companies, it is required that:
a)
A resolution must be taken by the general assembly of the com-
pany on advance dividend distribution, and
b)
Profit must be made according to the interim financial state-
ments of 3, 6 or 9 months prepared in the accounting period in
which advance dividend will be distributed.
Article 6/1 of the Communiqué regulates the content of the reso-
lution taken by the general assembly of the company. Pursuant to this
article, in case general assembly of the company resolves to distribute
advance dividend, the following must be stated in this resolution as
well;
a)
In the end of the related accounting period, if net profit which
shall cover the advance dividend distributed within the year
does not occur, advance dividend exceeding the net profit shall
be deducted from the free reserve funds stated in the previous
year’s balance sheet
b)
In cases where the amount of free reserve funds does not cover
the advance dividend, the overpaid advance dividend shall be
returned to the company by the shareholders upon notice of the
Board of Directors
64
NEWSLETTER 2012
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Article of September 2012