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Duties, Obligations and Liabilities of Liquidators
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Att. Nilay Celebi
The duties, obligations and liabilities of liquidators who play a
major role in the dissolution and liquidation of companies are briefly
explained below.
Liquidators, Their Duties and Obligations
The duties to be performed by liquidators are determined in the
relevant articles of the Turkish Commercial Code (TCC). In principle,
liquidators shall exercise their authority themselves and cannot trans-
fer their authority to third persons. However, in case there is more than
one liquidator, a liquidator may grant representative authority to his co-
liquidator or to a third person for the purposes of fulfillment of some
specific transactions (TCC Art. 539/1).
Liquidators represent companies with regard to the issues on liq-
uidation before courts or in external relations. In this respect, they can
appoint attorneys, conclude settlement agreements, or bring the dispute
to arbitration.
The liquidator shall act as a diligent director.
First Inventory and Balance Sheet
The liquidators shall first examine the status of the company con-
cerning the liquidation at the time of their appointment. They shall pre-
pare an inventory and balance sheet disclosing the financial and asset
status of the company by consulting with experts for the assessment of
assets, and submit these to the approval of the general assembly.
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NEWSLETTER 2014
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Article of June 2014