The Presidential Decision No. 2948 (“Decision No. 2948”) on the extension of temporary restrictions regarding distribution of dividends, reserves and advance dividends regulated under Article 13(1) of Turkish Commercial Code numbered 6102 (“TCC”) for additional 3 months has been entered into force by being published at the Official Gazette dated 18 September 2020.

In accordance with TCC Provisional Article 13/1, until September 30, 2020, companies could decide to distribute only up to 25 percent of their net profit for the year 2019. Within the scope of the same article, it was also stipulated that previous year profits and free reserves could not be subject to distribution and the general assembly could not authorize the board of directors to distribute dividends.

With the Decision No.2948 which has been entered into force as of today, the above-mentioned restrictions regulated under Provisional Article 13 (1) of TCC have been extended from 30 September 2020 to 31 December 2020.

Such restrictions shall still not be applicable for the state, special provincial administrations, municipalities, villages and other public legal entities and also for companies more than fifty percent of whose capital is owned directly or indirectly by the public.

You may reach the full version of Decision no. 2948 by clicking here.