41 COMMERCIAL LAW Furthermore, it is also possible to establish various committees and working groups connected with the council and/or assembly. The number and fields of activity of such committees and groups may vary depending on the needs and demands of the family members. These structures provide support in establishing a strong communication within the family and fulfilling the duties and responsibilities of the assembly/council. Like any contract, family constitutions usually end with standard contractual clauses such as confidentiality, amendment, and enforcement. It is extremely important that the family constitution is reviewed and updated at regular intervals in order to adapt to changing conditions over time, the needs of the family, the developments in the companies, and new legislation. By considering the importance of this issue, the obligations related to periodic review of the provisions of the constitution are generally envisaged, and the duties and responsibilities of the family members within this obligation are included. The family council or assembly may be appointed and authorized to update the constitution. Breach of the Constitution The key to the sustainable success of family businesses is to resolve the problems that may arise between family members, or between family members and the company, in a short time and in strict confidence, without allowing them to turn into serious conflicts or to affect the operation of the company. For this reason, the constitution, which is prepared by considering the values and dynamics of each family, includes sanctions that can be applied in case of violation of the prescribed rules and principles. These sanctions may include written or verbal warnings, termination of family membership or board membership, compensation for damages, and penalty for breach of contract. For instance, if agreed, any signatory family member may have the right to demand penalty from another family member acting in violation of the constitution, in accordance with the provisions of Article 179 of TCO. In case of breach of the constitution, the use of call-option or put-option within the scope of the share transfer restrictions may also be regulated as a punitive sanction. In this context, signatory family members could exercise the right to receive the shares
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