NEWSLETTER-2017

29 COMMERCIAL LAW the latest. The quorum for such second meeting is the representation of at least one-third of the share capital. In addition, pursuant toArticle 32 of the Regulation on Procedures and Principles of General Assembly Meetings of Joint Stock Companies and the Ministry of Customs and Trade Representatives to be Present at such Meetings 14 , the presence of a Ministry representative in such meetings is mandatory. Conclusion Capital can be increased through internal resources by way of conversion into capital of the reserve funds that are allocated by the articles of association or a general assembly resolution, not allotted for a specific purpose, the freely-usable parts of the statutory reserves, and the funds that are allowed by legislation to be added to the capital and included in the balance sheet. The internal resources specified un- der the TCC are not listed numerus clausus . In order to conclude this type of capital increase, existence of the certified annual balance sheet and an express and written statement given by the board of directors is mandatory. In the event of existence on the balance sheet of funds that are allowed by legislation to be added to the capital, the TCC does not allow capital increases through capital commitment without first converting such funds into capital. Through registration of the resolution for capital increase, current shareholders acquire ipso iure the gratis shares in accordance with the ratio of their current shares to the company’s share capital. 14 Official Gazette November 28, 2012, No. 28481. Article 19/2-b of the Regula- tion entered into force on July 1, 2013, provisions regulating the requirement on publication on website entered into force on October 1, 2013 and other provisions entered into force on the date of its publication.