Turkey has transferred the powers of court-appointed company
guardians to the Saving Deposit Insurance Fund ("Fund"),
as well as revised the Fund's abilities to sell and liquidate
companies, in the wake of the 90 day of State of Emergency declared
on 21 July 2016. Accordingly, from 1 September 2016 until the end
of the State of Emergency, the Fund will be allocated guardianship
for any company which is assigned a guardian under the Code of
Criminal Procedure numbered 5271 due to its connection to terror
For companies deemed to be connected to terror organisations
under the Code of Criminal Procedure, the powers of any related
court-appointed guardians which were assigned before 1 September
2016 are also transferred to the Fund.
If the Fund determines that a company under its control in this
context is not in a sustainable position due to financial status,
partnership structure, other issues, or market conditions, the Fund
can choose to sell the company, the company's assets, or
liquidate the company entirely.
Other provisions related to the Fund are also revised as
Rules regarding sale and liquidation
of seized companies in the Banking Law numbered 5411 will also
apply to the Funds sale and liquidation of companies.
The Fund will determine a liquidation
commission to perform liquidation transactions. The liquidation
commission can be a party to procedural acts and legal
The amount received from sale of
companies will be held in an account until conclusion of the
After selling a company's assets,
if the company's debts are not based on commercial transactions
with parties connected to FETÖ/PDY, the Fund can decide to pay
the debt from the tender price or ask the purchaser to pay the
Detailed rules are outlined for the
Fund's powers if the Ministry of Finance authorise it to sell
or liquidate the assets of a closed institution, establishment,
special broadcasting entity, gazette, journal, publishing firm or
distribution channel (or affiliated company) which was taken over
by the Treasury Department.
Proceeds from the sale of transferred
assets will be given to the Ministry of Finance.
Please see this link for the full text of Decree
No 674 Making Certain Arrangements within the scope of the State of
Emergency (2nd Duplicate Official Gazette, published on 1
September 2016; only available in Turkish).
Information first published in the
MA | Gazette, a fortnightly legal update newsletter produced by
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