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Seizure and Transfer of Limited Liability Company Shares
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Att. Alper Uzun
Limited Liability Companies are regulated under the Turkish
Commercial Code (“TCC”) numbered 6102 Art. 573 ff. Limited com-
panies have a predetermined capital comprised of the sum of capital
shares, established by one or more real persons or legal entities under
one trade name. Shareholders of a limited liability company are not
responsible for the company’s debts; their only liability is towards the
payment of the capital shares and fulfillment of the additional payment
and auxiliary obligations set forth under the articles of association.
A shareholder’s share of a limited liability company is counted
among seizable properties and rights since it is also an asset with a
financial value. The personal creditors of a shareholder may initiate
enforcement by seizure or by foreclosure of the pledged property; if
the shareholder is subject to bankruptcy, they may initiate bankruptcy
proceedings and request seizure and liquidation of a shareholder’s lim-
ited liability company share.
Art. 133 titled “Personal Creditors of Shareholders” of the TCC
that stipulates seizure of a company share is as follows:
(1) Personal creditor of one of the shareholders of a partner-
ship company shall take his payment from the dividends
that belong to that shareholder in accordance with the
financial statements of that company, or from the liquida-
tion profit, if the company is liquidated. If the financial
statements are not yet drawn up, the creditor may seize the
dividend or the liquidation profit that would fall to the
shareholder’s portion after the financial statements have
been drawn up.
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Article of February 2015