54 NEWSLETTER 2021 ticles of association a share transfer restriction other than the important reasons stipulated under Article 493 of the TCC, or the purchase and sale sanctions for violations. In addition, it is quite usual that family members do not prefer to regulate all of the details of the shareholding relationship among them in the articles of association, which is a public document. Therefore, even when it is possible to regulate the content in the articles of association, shareholders’ agreements are still necessary to regulate confidential matters among family members. On the other hand, there is no legal obstacle for the family constitution to regulate the matters included in the shareholders’ agreement. As a matter of fact, the contents of the family constitution and the shareholders’ agreement have diverged from each other due to continuing practices, and due to the purposes thereof. Both agreements are sui generis agreements that are not regulated under the law and enjoy the principle of freedom of contract. However, in practice, as set forth above, shareholders’ agreements contain binding provisions that have sanctioning powers; whereas, family constitutions mostly include ethical and moral rules, as well as non-binding provisions regulating the relations of family members between each other. While shareholders’ agreements are legal texts that are intended for companies in which family members hold the shares, and to which only the shareholder family members are party, all family members who wish to take part in this relationship, whether a shareholder or not, become party to the family constitution and, thus, the scope of the family constitution extends beyond the family business matters. For this reason, in practice, two separate legal relations – albeit interrelated – namely, the family constitution and the shareholders’ agreement, are established for these regulations, which have different parties and different binding effects. The main elements of family constitutions will be discussed in a separate article. Conclusion Family members who are shareholders in family businesses need a shareholders’ agreement that will regulate their relations with the company and with each other, and that will prevent or quickly resolve any disputes that may arise, especially as the family expands. Although the content of this agreement may vary by virtue of the principle of freedom of contract, issues, such as corporate governance,
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