NEWSLETTER-2017

28 NEWSLETTER 2017 statutory reserves on the balance sheet 11 . The opposing view, on the other hand, argues that the word “funds” used in the article includes the reserve funds and statutory reserves, as well as funds, such as the revaluation fund, because both of the said internal resources are components of equity capital 12 . (ii) The increase is finalized through the registration of the rele- vant general assembly or board of directors’ resolution and the amended version of the relevant articles of the articles of association, just as with capital increases through capital commitment. (iii) Through registration, current shareholders acquire ipso iure the gratis shares in accordance with the ratio of their current shares to the company’s share capital. Such right attached to the gratis shares can neither be removed, nor restricted, and is inalienable. Pursuant to this rule, at the time of finalization of the increase made through internal resources, without the need for a company body resolution regarding the acquisition of the gratis share, the previous share is borne ipso iure embedded with the gratis share; in other words, in a form comprised of the previous share and the gratis share 13 . The right attached to the previous share regarding the gratis share is not a pre-emptive right; therefore, it is not possible to restrict or remove such right, or waive it. Apart from those listed in such article, there are also certain rules applicable to all methods of capital increases. Accordingly, as per Ar- ticle 421 of the TCC, the resolutions for capital increases through in- ternal resources shall be adopted in a general assembly meeting where at least one-half of the share capital is represented, with the majority of the votes present at the meeting. In the event such quorum is not met in the first meeting, a second meeting may be held within one month, at 11 Altaş, Soner, “ Anonim Şirkette İç Kaynaklardan Sermaye Artırımı ”, Banka ve Finans Hukuku Dergisi, Vol. 6, No. 22, Y. 2017, p. 536. 12 Tekinalp, Ünal, Sermaye Ortaklıklarının Yeni Hukuku, Updated 4 th ed., İstanbul, 2015, p. 129. 13 Preamble of Article 462 of the TCC.