ERDEM-NEWSLETTER-2018-metin

16 NEWSLETTER 2018 Usufruct Right on Joint Stock Company’s Registered Shares * Att. Ecem Cetinyilmaz Introduction The usufruct right, which is regulated under Turkish Civil Code numbered 4721 1 (“Civil Code”), enables the right holder (“usufructu- ary”) to fully use and enjoy property subject to such right. A usufruct right may be established on movables, immovable properties, rights, and groups of assets. Although there are several provisions foreseen under Turkish Commercial Code numbered 6102 2 (“TCC”) regard- ing the establishment of usufruct rights on shares, the TCC does not particularly regulate this issue. The following sections of this article include general information on usufruct rights, as well as the establish- ment of such rights on the registered shares of joint stock companies, the joint stock company’s entitlement to limit the establishment of usufruct rights, and the scope of such rights. Usufruct Rights in General Usufruct rights are regulated under Article 794 et seq. of the Civil Code. Unless otherwise agreed, usufruct rights enable the usufructu- ary to fully use and enjoy the subject property, subject to such right. A usufruct right granted to a real person terminates upon the usufructu- ary’s death; whereas, those granted to legal entities terminate upon the expiration of the agreed upon time period by the parties. If there is no time restriction for usufruct rights granted to a legal entity, then the right terminates upon dissolution of the legal entity. A usufruct right can be granted to a legal entity for a maximum period of 100 years. * Article of June 2018 1 Civil Code (OG, 08.12.2001, No. 24607) entered into force on 01.01.2002. 2 TCC (OG, 14.02.2011, No. 27846) entered into force on 01.07.2012.