As one of the governmental measures taken due to Covid19, earlier this year in April 2020, the Turkish Parliament enacted an Omnibus Law that restricted companies from distributing dividends exceeding 25% of the net profit pertaining to the 2019 financial year until 30 September 2020. In an effort to provide further guidance on the implementation principles of this restriction as well as introducing certain exemptions, the Ministry of Trade published the Communiqué on the Procedures and Principles of the Implementation of Temporary Article 13 of the Turkish Commercial Code on 17 May 2020. On 18 September 2020, it was announced in the Trade Registry Gazette that such restriction on dividend distribution is extended for a further three months, hence shall remain in force until 30 December 2020
On 23 June 2020, Data Protection Board of Turkey (the "Board") has once again extended the deadline for Data Controllers' Registry ("VERBIS") as the data controllers were unable to prepare their data inventories and complete VERBIS registration due to lockdown caused by Covid-19 pandemic.
A new omnibus bill (the "Omnibus Bill") was published in the Official Gazette on April 17, 2020, with the aim of reducing the impact of Covid-19 pandemic on economic and social life. In an effort to preserve equity of companies, the Omnibus Bill adds a provisional article to the Turkish Commercial Code, which restricts dividend distributions for 2019 fiscal year. Companies must postpone and not make cash dividend distributions exceeding 25% of the net profit pertaining to 2019 fiscal year until September 30, 2020. Similarly, companies are not allowed to distribute profits pertaining to previous years or reserve funds as dividend or authorize the directors to make interim dividend payments until then.
A new omnibus bill (the "Omnibus Bill") was published in the Official Gazette on April 17, 2020, with the aim of reducing the impact of Covid-19 pandemic on economic and social life. The Omnibus Bill introduces a temporary restriction on termination of employment and service contracts.
In an attempt to support financial stability and mitigate the economic risks associated with the global Coronavirus (Covid-19) outbreak, the Banking and Regulatory Supervision Agency of Turkey (the "BRSA") and the Capital Markets Board of Turkey (the "CMB") drastically expanded the restrictions regarding the total notional amount of foreign currency denominated swaps and other derivative transactions carried out by banks and financial institutions operating in Turkey.
In an effort to provide a degree of comfort to market players struggling to fulfil their regulatory obligations due to Covid-19 pandemic, the Energy Market Regulatory Authority of Turkey (the "EMRA") has announced that it will extend various regulatory compliance deadlines by a period of three months.
We live in uncertain times, where many companies face challenges brought about by the sudden and wide-ranging economic impact of Coronavirus (COVID-19). Whilst the Turkish government is implementing various measures to relieve certain financial consequences, including the suspension of enforcement proceedings, encouraging banks to postpone loan repayments (as well as making new available credit lines) and deferment of taxes, it is inevitable that many boards face unprecedented situations and challenges ahead. This tip sheet is prepared to give examples of best practice in these difficult circumstances.
Coronavirus (Covid-19) is likely to lead to a period of volatility and uncertainty in global and domestic markets, making settling valuation and pricing, and achieving deal certainty in M&A transactions, more challenging. Sellers are likely to have a valuation outlook that assumes a short period of uncertainty; Buyers may worry about an extended or deep period of uncertainty.
Due to escalating concerns around the spread of the Coronavirus (Covid-19) pandemic in Turkey, the Data Protection Authority of Turkey (the "DPA") made an announcement on 23 March 2020 regarding its re-assessment of time periods set out under the Data Protection Law numbered 6698 and its secondary legislation in an effort to provide a certain degree of flexibility to private and public data controllers.
Following the outbreak and spread of the Coronavirus (Covid-19), we expect to see a flow of force majeure or similar claims in various types of commercial contracts, ranging from supply to sales and from construction to regular service contracts.
The Presidential Decree No. 2279 on the Suspension of Execution and Bankruptcy Proceedings (the "Presidential Decree") has been published in the Official Gazette dated 22 March 2020 and numbered 31076 as part of the Turkish Government's plan to keep the spread of Covid-19 disease at bay.
As the Coronavirus (Covid-19) outbreak continues to spread, Ministry of Trade (the "Ministry") introduced certain privileges to avoid or suspend physical gatherings for the general assembly meetings of joint stock companies and limited liability companies.
The global escalation of the Coronavirus (Covid-19) pandemic has come at a critical time in the financial reporting cycle for many infrastructure investor-owned businesses. In this briefing, we consider some of the key financing issues, looking at liquidity, yield and capital management tools, such as debt buy-backs, as well as touching on issues for businesses further down the stress/distress curve.
As the Coronavirus (Covid-19) outbreak continues to spread, businesses face a range of issues. What are the key risks and legal considerations for employers?
As the Coronavirus (Covid-19) outbreak continues to spread, entities are implementing an increasing number of measures to prevent contamination of their premises and amongst their staff all over the world. These measures sometimes require them to collect, analyse and share information about individuals, but it does raise data protection challenges. What types of personal data can be collected, and how? Can it be shared with other entities?
The Coronavirus (Covid-19) outbreak is causing disruption to businesses across sectors and jurisdictions. In this briefing we offer some practical tips for lenders and borrowers in loan financings to consider.