There is a significant regulation with regard to the companies
in Turkey and their shareholders in Turkey and abroad which has
been promulgated in the Official Gazette dated August 28, 2012,
numbered 28396, which indicate ''Regulation pertaining to
the General Assembly of Joint Stock Companies to be held via
Electronic Means (EGKS) ''.
Electronical General Assembly System has became fundamental
positions for companies since they can participate in meeting by
electronic which provide not merely in person but also through
their representatives can join the meeting. This application
focuses on the importance of the information system and technology
This application provides advantages for international trade and
encourages enterpriser to invest in Turkey because they can monitor
the physically hold meeting online through Internet access and send
their views, suggestions or questions in conferences
simultaneously. Therefore, it is easy to pass general assembly
resolutions although shareholders who are not able to attend the
meeting. Moreover, this application impacts voting process as
shareholders can vote simultaneously or can receive information,
yet all of them reflect the structure of the meeting with regards
to adverse or positive because there is an instantly process.
Why is E-GKS essential?
It is certain that shareholders may not have time to attend a
shareholders' meeting. They may go abroad so as to attend the
meeting, but they have no enough time and do not want to lose a lot
of time. In such cases, normal voting system may arise problems.
Due to the fact that e-GKS becomes part of an effort in order to
make an agreement from abroad with ease.
This system is the first Turkish electronic certification
provider and also first electronic mobile provider. As a result of
this, there is an important item for reliable in the information
system which assists to have secure electronic signatures. In
addition to this, ones who desire to attend the meeting via
electronic means should arrange their time and shareholders or
companies preserve their time and it is no required to go abroad
for assembly. This conditions impact the rate of commerce because
it is ease to make an agreement through this system in terms of
confidentiality and information exchange.
Regulation of E-GKS System: Legal and Financial Aspects
The regulation implicates the procedures and principles of
voting by the beneficial owner or his/her proxy holders. In
conformity with Article 1527 of the Turkish Commercial Code, there
is an attend general assembly meetings by electronic which the
company shall constitute the electronic meeting system by itself
and this regulation assist shareholders or companies to make
proposals and express opinions, also vote by electronic system.
Accordingly, giving votes will be kept by MKK (Merkezi Kayıt
Kuruluşu). As mentioned above, this system will contributes to
vote and also it is possible to assign a proxy. Moreover, this
system makes room for digital signature and contributes to
regulation which the electronic signature defined in Article 4 of
the Electronic Signature Law No: 5070.
E-GKS System which is one of the first E-GKS systems in the
world is an obligation for joint stock companies which are listed
in Istanbul Stock Exchange. There is no obligation for other
companies to participate in the E-GKS system. In particular,
information technology system generates new innovations. Since
these applications are essential for many companies, shareholders,
representatives and investment companies. Thanks to E-GKS,
companies have a right to sign off on agreements and this system
ensures companies to have reliability, transparency of companies.
As a result of this, companies will be able to make a decision with
quickly in the general meeting and this opportunity contributes to
commercial sectors in order to expedite in the world. Hence, there
is an international connection for shareholders or representatives
who do business from a distance. Under these circumstances,
companies will operate faster decision making which affect economy
in the positive way.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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