NEWSLETTER-2017

25 COMMERCIAL LAW are regulated as the funds that are allowed by the legislation to be added to the capital without explicitly being defined or exemplified. The revaluation fund, the participation and real estate sales proceeds fund, as well as the inflation fund, are examples in this respect 3 . In practice, generally, the accumulated reserve funds in the company, and the debts that are borrowed by the company from its shareholders, are converted into capital. Conditions for Capital Increases through Internal Resources Under Article 462/2 of the TCC, it is stated that the existence of the amount that covers the increased part of the capital through internal resources within the company shall be verified by the certified annual balance sheet, and by an express and written statement given by the board of directors. The TCC regulates these principles for the purposes of transaction security because it is necessary to audit whether or not the internal resource used for the capital increase actually exists and, if indeed it does, whether or not this resource is counted among the amount used for the increase 4 . Furthermore, it is required by the article that if six months have passed since the date of the balance sheet, a new balance sheet shall be prepared and approved by the board of directors. The legislator assumes that the subject internal resource has been used in the event six months period is exceeded, and requires verification of the internal resource with a more recently dated balance sheet 5 . Accordingly, in the event a capital increase is made through internal resources within the first six months of the year that follows the end of the accounting pe- riod, the certified balance sheet of the previous year suffices; however, in the event that the increase in question is made within the second six month period, the previous year’s balance sheet cannot be used, and a new balance sheet shall be required 6 . In the preamble of the article, it is stated that so long as the conditions of the specific case enable, it 3 Preamble of Article 462 of the TCC. 4 Preamble of Article 462 of the TCC. 5 Preamble of Article 462 of the TCC. 6 Altaş, Soner, “ Anonim Şirkette İç Kaynaklardan Sermaye Artırımı ”, Banka ve Finans Hukuku Dergisi, Vol. 6, No. 22, Y. 2017, p. 534-535.