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Commercial Law
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Is It Possible To Collect The Receivables Arising From The Contracts With Arbitration Clause Through Enforcement Proceedings? 6 September 2019
Associated with the development of international trade, the relations between the parties of the commercial relationship have become diversified, complicated and the nationalities of the parties have started to be different from each other. Therefore, the parties have decided to stipulate arbitration clauses in the contracts in order to resolve various and complex disputes arising from the contractual relationship between them to be solved by experts in their field and to prevent the parties who are subject to different nationalities to encounter a legal order that they do not recognize. In spite of a valid arbitration clause, there is no explicit provision under Turkish Law as to whether the receivables arising from this contract can be collected through enforcement proceedings without ju...
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What Will Change with the Electronic Era of Check and Promissory Note? 11 July 2019
The Ministry of Trade introduced the Draft “Law on Electronic Checks and Promissory Notes” (the “Draft Law”) proposing the use of electronic checks and promissory notes. The Draft Law is expected to enter into force on January 1, 2020. With the entering into force of the Draft Law, checks and promissory notes can be issued, endorsed and paid electronically. For the purpose of these transactions, besides the systems within banks, an Electronic Checks and Promissory Notes System –Elektronik Çek ve Bono Sistemi- (“ÇEBSİS”) will be established as to enable interaction between banks’ systems.
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The Movable Pledge within the Scope of Law on Movable Pledge Registry-Tares 19 April 2019
Law on Movable Pledge in Commercial Transactions (“Movable Pledge Law”) entered into force in 01.01.2017 and brought a number of innovations including commercial enterprise pledge by abolishing Law on Commercial Enterprise Pledge (“Abolished Pledge Law”).
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Debt Restructuring Transactions 27 March 2019
Due to the recent economic troubles in our country, many companies have suffered financial difficulties and have started to experience difficulties on paying their debts. This situation also negatively affects the flow of money and indirectly financial strength of the companies that are credited from aforesaid companies. Therefore, most cases in practice debt restructuring contracts/ exchange underwriting are signed and the maturities of the firms’ debts and collaterals received have been changed / renewed. Unfortunately, debt restructuring / installment transactions, which are mostly concluded without detailed information, cause companies to suffer greater losses.
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What is Technical Bankruptcy? What are The Procedures And Principles To Comply With? 20 March 2019
The extent to which the financial distress of capital companies affects the company's capital is important in terms of determining whether the company fall into scope of capital losses or over indebtedness that is also known as technical bankruptcy.
Procedures and principles to be complied in the event of capital loss or over indebtedness of capital companies that are regulated in general terms under Article 376 of the Turkish Commercial Code (“TCC”) are clarified with The Communiqué on the Principles and Procedures for the Application of Article 376 of the Turkish Commercial Code No. 6102 (”Communiqué”) which was published in the Official Gazette dated 15 September 2018 and became effective upon its publication. In general terms, while bringing in regulations parallel to Article 376 of t...
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What Are the Penalties Imposed on the Crime of Causing a Cheque To Be Dishonored? 1 February 2019
A number of amendments have been introduced to the Cheque Law No. 5941 (“Cheque Law”) in order to improve the investment environment. With this amendment, various sanctions have been envisaged for the person responsible for the consideration of the cheque in the relevant bank account in order to increase the confidence in cheque as an instrument of payment frequently using in the business life and to eliminate the usage of dishonored cheque.
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Mandatory Mediation Process for Commercial Disputes 28 December 2018
The Law on the Execution Proceedings for the Collection of Monetary Receivables Arising out of Subscription Agreements No. 7155 (“Law no.7155”) was published in the Official Gazette on 19 December 2018 and amended the Turkish Commercial Code by the addition of Article 5/A. Pursuant to new regulation, the mediation process becomes mandatory before initiating a lawsuit for commercial disputes regarding payment of a certain amount of money and compensation claims. This requirement shall not be applied to the pending cases before the courts of first instance, Regional Courts of Justice and the Supreme Court.
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The Situation of Execution Proceedings Without Judgement In The Period of Concordat 18 December 2018
As is known, the amendments made by the “The Law Amending the Execution and Bankruptcy Law and Other Certain Laws” no.7101 published in the Official Gazette and entered into force in 28.02.2018 are mostly related with concordat. As a result of new regulations, postponement of bankruptcy was abrogated and concordat was remained in force as an only and final cure to be proceeded by debtor before bankruptcy in the law of reconstruction (or rehabilitation).
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Transfer of Commercial Enterprise in Economic Difficulties to Third Persons 26 November 2018
Due to the economic distress in our country, unfortunately it is well known fact that several companies are in financial difficulties and their solvency is weakened. These difficulties cause the real and legal persons possessing the title of merchant to seek for different ways and fall back on the practical solutions which may be accepted as collusive most of times. One of these methods is the transfer of commercial enterprise.
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Can the Letter of Guarantee of the Company Declared Concordat Be Converted into Cash? 30 October 2018
Due to the recent economic conjuncture in our country, many firms have difficulty on paying their debts and resort to concordat institution as a consequence. The increasing number of firms, which resort to this solution, creates insecurity for the creditor firms and causes that creditor firms seeking for a way of guaranteeing their credits regardless of the economic competence of the debtor. One of the most important guarantee mechanisms used by the creditor firms is the bank letter of guarantee.
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