NEWSLETTER-2019-metin

36 NEWSLETTER 2019 Transfer of Seized Shares* Att. Tuna Colgar Introduction The questions as to whether shares are subject to seizure and, if they are, how the powers of disposition on those shares can be exercised, as well as the results of seizure on shares, are frequently discussed in both the doctrine and in the decisions of the Court of Cas- sation. In the examination of these subjects, different legal disciplines, such as the Turkish Commercial Code (“TCC”), the Enforcement and Bankruptcy Law (“EBL”), and the Turkish Civil Code (“Civil Code”) should be evaluated, together. Article 133 (2) of the TCC regulates that creditors, whether the debtors’ shares of the creditors in stock corporations are issued as certificates or not, may request seizure and conversion into money in accordance with the provisions of the EBL on movables, and that the seizure shall be recorded in the stock ledger upon request. The stock corporations mentioned here are general partnerships, commandite, joint stock, limited liability, and cooperative companies, pursuant to Article 124 of the TCC. In this context, important distinctions must be taken into consideration in order to take the necessary steps for the seizure process, and the process must be carried out by performing the correct procedures. Firstly, the type of stock corporation whose shares will be subject to seizure should be determined, and then it should be determined whether the shares have been issued as certificates. If we consider the issue in the case of joint stock companies, the most important distinction to be determined is whether the shares that are subject to seizure are issued as certificates. While a certificated share is in the form of movables, an uncertificated share has the char- * Article of July 2019