NEWSLETTER-2020-metin

33 COMMERCIAL LAW As explained, above, the general assembly is one of the organs that builds a company’s future. If the company makes resolutions re- garding its management through the acquired shares, this may cause a worrying result in regard to the balance between the organs. There is also an opinion, which evaluates that due to the misusage of the voting rights of the acquired shares by the company management, the balance of power may change in favor of the board of directors 6 . The main result of freezing due to the companies’ acquisition of its own shares is that the related voting rights cannot be used. Another result is that such shares shall not be taken into account in the calcula- tion of the quorums for the general assembly meeting. Additionally, another result of the acquisition is that such shares do not offer any shareholding rights to its shareholders. As explained above, the main idea behind the freezing of such voting rights is to prevent the com- pany from determining its own future and to protect the power balance between two organs of the company (for detailed information regard- ing a company’s acquisition of its own shares, please refer to 7 .). Acquisition of the Parent Company by the Subsidiary The acquisition of the parent company by the subsidiary is regu- lated under Article 389 of the TCC. As explained above, the parent company’s shares that have been acquired by the subsidiary shall not be taken into account in the calculation of the quorums for the general assembly meeting. The voting rights of the parent company’s shares that have been acquired by the parent company shall be also frozen. Cross Shareholding Cross shareholding may be simply defined as the participation of two companies to each other’s capital. Pursuant to Article 197 of the 6 Çapa, Mehmet Sadık: Anonim ve Limited Şirketlerin Kendi Paylarını İktisap Etmesi, On İki Levha Yayıncılık, İstanbul, 2013, p. 107. 7 Sevinç Atılganer, Melisa: “ Certain Shareholder Rights in Companies’ Acquisi - tion of its Own Shares ” Erdem & Erdem Newsletter, June, 2020, http://www. erdem-erdem.av.tr/publications/newsletter/certain-shareholder-rights-in-compa- nies-acquisition-of-its-own-shares/.