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NEWSLETTER 2013
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aforementioned shares are considered as ceased as per the TCC. The TRR
repeats this sanction as well.
Besides explanations with respect to the notification obligation,
Article 107 of the TRR covers in great detail voting and share ratio
thresholds and stipulates the issues, if any, that should be considered
in cross-shareholding calculations and how the calculations should be
conducted.
Audit of the Group
Pursuant to Article 108 of the TRR, the group auditor is appointed
by the general assembly of the parent company. For each activity period,
a general assembly resolution for the appointment of an auditor must be
taken by the end of the fourth month of the activity period, and in any case
before the end of the activity period during which he shall fulfill his duty.
After the appointment, the board of directors shall register the auditor
without any delay. In the event a group auditor has not been appointed
by the general assembly of the parent company, the auditor of the parent
company is registered as the group auditor.
Assessment
Although the TCC aims at broad implementation of the provisions
regarding group companies, the TRR includes restrictive provisions that
are contrary to this aim. In this regard, the provisions of the TRR that
limit the scope of implementation are inconsistent with the aim of the
lawmaker and the spirit of TCC, and deviates from its regulating purposes.