IMPLEMENTATION OF THE RESTRICTION ON DIVIDEND DISTRIBUTION CLARIFIED BY THE MINISTRY OF TRADE

Earlier this year in April 2020, the Turkish Parliament enacted an Omnibus Law1 that restricted companies from distributing dividends exceeding 25% of the net profit pertaining to the 2019 financial year. This temporary restriction will be in force 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 Communiqué2 on the Procedures and Principles of the Implementation of Temporary Article 13 of the Turkish Commercial Code on 17 May 2020 (the "Communiqué").