NEWSLETTER-2019-metin

51 COMMERCIAL LAW companies and non-publicly held companies are subject to different regulations. The rate of distribution of dividends for non-publicly traded corporations cannot be less than twenty percent of the net dis- tributable profit of the period, plus donations as determined pursuant to provisions of the Communiqué. Non-publicly traded corporations are required to distribute their profit shares fully and in cash. In the event that the calculated amount of dividends is lower than five percent of the share capital shown in the last yearly financial state- ments to be presented to the general assembly, or the amount of the net distributable profit of the period shown in the said financial statements is below TRY 100,000, the non-publicly traded corporations may not distribute dividends for the relevant accounting period, and this shall be disclosed to the public. In conclusion, non-publicly traded companies shall distribute at least twenty percent of the net distributable profit of the period unless there is an exceptional case as explained, above. Dividend Guide Pursuant to Article 13 of the Communiqué, the CMB prepares a guide regarding sources that may be used for the distribution of dividends, and distribution of dividend and dividend advances, by companies, and has discloses the guide to the public and updates it, when and if necessary to do so. The most recent Dividend Guide published by the CMB contains the general principles on dividend distribution, as well as the format and content of the above-mentioned dividend distribution statement. Such guide offers detailed explanations regarding the obligations under the legislation, and assists with its application by example forms. Conclusion The distribution of dividends in public companies is regulated under Turkish Commercial Code numbered 6102, Capital Market Law numbered 6362 and the Communiqué on Dividends numbered II-19.1. There are different regulations for publicly traded companies and