What Are the Legal Transactions Regarding Stocks?
The issuance of stocks or temporary certificates of participation has numerous tax advantages, both in terms of value-added tax and income tax. The benefits in the field of
are generally as follows. Share certificates are among the most legally compliant negotiable instruments issued by joint-stock companies, whose capital is divided into shares, representing participation in the company's capital. In other words, they are known as securities. Furthermore, according to the current Turkish Commercial Code (TTK), they are not obliged to issue stock certificates. Along with these, the TTK draft, currently awaiting deliberation by the Grand National Assembly of Turkey, also refers to stocks as share certificates and imposes an absolute obligation on joint-stock companies to issue bearer share certificates and a conditional obligation to issue registered share certificates.
The specifications and forms of stock certificates are determined by the articles of the Turkish Commercial Code.
What is a Temporary Certificate of Participation in Stocks?
The institutions that can issue stock certificates include joint-stock companies, limited partnerships with divided capital (generally known as partnerships with shares), and specially established institutions, as well as housing development and public participation administrations. A significant portion of the joint-stock companies operating in these areas in our country are family businesses and generally do not need or therefore do not issue stock certificates. However, in these matters, you must always obtain the necessary services and information from experts and experienced individuals in the field. Temporary certificates of participation are known as securities issued by joint-stock companies to replace all share certificates during the stock issuance process. These certificates, which grant their holders the right to attend general assembly meetings, vote, and receive dividends, lose their validity once the relevant companies issue the stock certificates and deliver them to their partners. At this point, certificates of participation issued for an interim period to replace registered share certificates must be drawn up by expert individuals, as they grant shareholder rights such as attending general assembly meetings, voting, and receiving dividends.
