Turkish Commercial Law_{An English-Language Textbook}

ABOUT THE AUTHOR   III

ACKNOWLEDGEMENTS  V

ABOUT THE BOOK   VII

TABLE OF CONTENTS  IX

ÖZET  XXIX

ABSTRACT  XXX

Chapter 1 - Introduction to Turkish Commercial Law: Nature, Function, and Sources  1

I.   Commercial Law and the World of Trade  2

II.  What Is “Commercial Law”?  3

III. Turkish Commercial Law within the Turkish Legal System   4

A.   The Turkish Commercial Code as a Component of Private Law   4

B.   “Commercial Provisions” and the Method of Gap-Filling  5

C.   Commercial Custom and Trade Usage  6

D.   The International Context of Turkish Commercial Law   7

IV.  Core Concepts: Commercial Enterprise, Merchant, Commercial Acts, and Commercial Cases  8

A.   The Commercial Enterprise (Ticari İşletme) 9

1. Definition and elements. 9

2. The enterprise as a legal whole. 10

3. The enterprise criterion in practice. 10

B.   The Merchant (Tacir) 11

C.   Legal Consequences of Being a Merchant 11

D.   Commercial Acts and the Commercial Character of Transactions  13

E.   Commercial Cases and Specialised Adjudication  13

V.  The Architecture of Turkish Commercial Law: Main Fields and Their Logic  14

VI.   Characteristic Features of Commercial Law   16

A.   Speed, Predictability, and the Costs of Uncertainty  16

B.   Documentation, Evidence, and the Legal Life of Commercial Paper 17

C.   Standard Terms and the Economics of Repetition  18

D.   Commercial Custom, Trade Usage, and “Non-State” Norms  19

E.   Good Faith, Market Trust, and the Protection of the Good-Faith Participant 20

F.   Risk Allocation, Credit, and Insolvency Sensitivity  20

VII.  Historical Development: From Lex Mercatoria to the Turkish Commercial Code  21

A.   The Law Merchant and the Emergence of Transnational Commercial Norms  21

B.   Codification and the National Commercial Codes  22

C.   Modern Developments: International Harmonisation and Private Rule-Making  22

D.   Turkish Commercial Law in Historical Perspective  23

VIII.       Competing Models for Defining the Scope of Commercial Law   24

A.   The Subjective Model: Merchant Status as the Gateway  24

B.   The Objective Model: Commercial Acts as the Gateway  25

C.   The Mixed Model: Combining Status and Act 25

D.   The Enterprise-Based Model: Organised Economic Activity as the Gateway  25

IX.  Sources of Turkish Commercial Law   26

A.   Statutory Law and Secondary Legislation  26

B.   Commercial Custom and Usage as an Auxiliary Source  27

C.   Party Autonomy, Contractual Design, and Standard-Form Rules  27

D.   International Treaties, Model Laws, and Soft Law   28

E.   Case Law and Legal Doctrine  29

F.   A Disciplined Approach to “Finding the Rule”  29

X.  Conclusion  30

XI. Key Terms and Concepts  30

Chapter 2 - The Commercial Enterprise in Turkish Law   33

I.       The Commercial Enterprise as the Gateway to Commercial Provisions  33

II.      What Is an “Enterprise” in Legal Terms?  35

III.    The Statutory Definition: Article 11 and the Integrity Principle  36

IV.    Continuity: The Enterprise as an Ongoing Economic Activity  38

V.     Independence: Activity Carried Out on One’s Own Account 40

VI.    Income Objective and the Artisan Boundary:  The Scale Element 41

VII.   The Commercial Enterprise as a Legal Whole: Elements, Goodwill, and the Logic of Unity  43

VIII.  From Enterprise to Merchant: The Operator as the Legal Actor and the Core Duties  45

IX.    Branches (Şube): External Activity and Internal Dependence  48

X.     Transfer of a Commercial Enterprise: Preserving the Going Concern Through Form and Publicity  50

XI.    Debts and Creditor Protection: Assumption of Liabilities and Joint Responsibility  53

XII.   The Commercial Enterprise in Reorganisations: Contribution, Merger, and Conversion  56

XIII. Conclusion: Why the Commercial Enterprise Matters for the Rest of Turkish Commercial Law   57

Chapter 3 - Commercial Transactions (Commercial Affairs) and Their Legal Consequences in Turkish Commercial Law   59

I.       The Function of Classification: Why “Commercial” Matters  59

II.      Commercial Provisions and the Method of Applying Legal Sources  60

III.    Commercial Custom, Trade Usage, and the Interpretation of Contracts  61

IV.    Defining Commercial Transactions: The Enterprise Connection (TCC Article 3) 63

V.     Presumptions of Commercial Character  (TCC Article 19) 65

VI.    Consequences of Commercial Nature: An Overview   68

VII.   Presumption of Joint and Several Liability in Commercial Matters (TCC Article 7) 70

VIII.  Suretyship in Commercial Context and the Logic of Joint Surety Presumptions  73

IX.    Interest in Commercial Transactions: Freedom, Limits, and the Exception of Compound Interest (TCC Articles 8-10) 75

X.     Late Payment in the Supply of Goods and Services Between Commercial Enterprises (TCC Article 1530) 78

XI.    Commercial Disputes as a Procedural Consequence: Commercial Courts and Mandatory Mediation (TCC Articles 4, 5, and 5/A) 80

XII.   Concluding Synthesis: A Practical Method for Analysing Commercial Character 82

Chapter 4 - Merchant 87

I.   General 88

A.   Merchant status as a legal status  88

B.   The policy reasons behind a separate merchant regime  89

C.   Merchant, artisan, and the “borderline” problem   89

D.   A preview of the practical consequences  90

II.  Natural Persons  90

A.   General 90

1. Merchant (TCC Article 12(1)) 91

a.   Existence of a commercial enterprise  91

b. Operation of the commercial enterprise  92

c.   Operation in one’s own name  93

2. Persons deemed to be traders (TCC Article 12(2)) 94

3. Persons liable as merchants (TCC Article 12(3)) 94

B.   Special Cases  95

1. Minors and persons with limited capacity (TCC Article 13) 95

2. Persons prohibited from operating a commercial enterprise or subject to authorisation (TCC Article 14) 96

C.   A note on the artisan category within natural persons  97

III.  Legal Entities and Joint Ventures  98

A.   In general 98

B.   Those listed in the law (TCC Articles 16 and 17) 98

1. Commercial partnerships (trade companies) 98

2. Foundations  99

3. Associations  100

4. Institutions and organisations established by public legal entities under private law   100

5. Public legal entities, public benefit associations, and certain foundations: exclusion from merchant status  100

6. Joint ventures and unincorporated commercial cooperation  101

7. Controlling undertaking and the broader group context 102

IV.  Acquisition, Termination, and Scope of Merchant Status  103

A.   Acquisition of merchant status  103

1. Natural persons  103

2. Legal persons  104

a.   Commercial companies  104

b. Other legal entities  104

B.   Termination of merchant status  105

1. Natural persons  105

2. Legal entities  105

a.   Commercial companies  105

b. Other legal entities  106

3. Obligations related to the termination of merchant status  106

C.   Scope of merchant status  107

1. Natural persons  107

2. Legal entities  107

V.  Effects and Consequences of Merchant Status  108

A.   Presumption that debts arise from commercial transactions (commercial presumption) 109

B.   Special provisions applicable to merchants  110

1. Subject to bankruptcy  110

2. Absolute application of commercial customs and practices  110

3. Inability to request reduction of fees and penalties  111

4. Right to claim wages and interest 111

5. Subject to special rules of proof regarding invoices (TCC Article 21(2)) 112

a.   Invoice  112

b. Evidential value of the invoice  112

6. Subject to special rule of proof regarding confirmation letters (TCC Article 21(3)) 114

a.   Confirmation letter 114

b. Evidential value and practical function  114

7. Facilitation in the exercise of the right of detention (Civil Code Article 950) 115

8. Agreement on jurisdiction (HMK 17-19) 116

9. Law No. 6217 and the broader “acceleration” policy  116

C.  Obligations to which merchants are subject 116

1. Selecting, using, registering, and announcing a trade name  116

2. Registering and announcing the commercial enterprise in the trade registry  117

3. Keeping commercial books  117

4. Issuing invoices and indicating payment on invoices  118

5. Obligation to act as a prudent businessperson  118

6. Registration with the Chamber of Commerce  119

D.   Special provisions regarding commercial transactions where both parties are merchants  119

1. Commercial books as special evidence  119

2. Obligation to comply with certain notices and warnings in specific forms (TCC Article 18(3)) 120

3. Commercial sale and exchange of goods (TCC Article 23) 121

a.   Partial performance / execution  121

b. Default of the buyer 121

c.   Defective performance  122

aa. Rights arising from defects and the link to the Code of Obligations  123

bb. Form of defect notification  123

d. Limitation periods and the mandatory nature of commercial limitation rules  123

e.   Consumer law boundary  124

E.   Special provisions regarding supply contracts between commercial enterprises (TCC Article 1530(2)-(8)) 124

VI. Conclusion  125

Chapter 5 - Trade Name and Business Name  127

I.   Commercial Identity in Turkish Commercial Law   129

A.   Why commercial law regulates names  129

B.   Trade name, business name, trademark, and other commercial signs  130

C.   Sources and systematic position of the rules  131

II.  The Trade Name  132

A.   Definition and core functions  132

B.   Legal nature and relationship with the commercial enterprise  133

C.   The obligation to use the trade name in commercial life  134

D.   Registration and announcement: the trade registry dimension  135

III. Formation of the Trade Name under the TCC   136

A.   Structure: the “main element” and the role of additions  136

B.   Natural person merchants  138

C.   Partnership forms: collective and limited partnership companies  139

D.   Capital companies and cooperatives  140

E.   Other legal entities considered merchants and shipowning joint ventures  141

F.   Distinctiveness and the nationwide priority principle  141

G.   Appendices: truthfulness, public order, and restricted expressions  142

IV.  Continuation, Branch Use, and Transfer of the Trade Name  143

A.   Continuation despite changes in identity or partnership  143

B.   Branch trade names and the unity of the enterprise  145

C.   Transfer of the trade name and transfer of the commercial enterprise  145

V.   Exclusive Right, Protection, and Sanctions  146

A.   The exclusive right and its conditions  146

B.   Infringement and the standard of commercial honesty  147

C.   Civil remedies for trade name infringement 148

D.   Relationship with unfair competition and trademark law   149

E.   Notification duties and sanctions  150

VI.  The Business Name  151

A.   Definition and rationale  151

B.   Registration, distinctiveness, and the scope of protection  152

C.   Transfer and practical management of business names  153

VII. Conclusion: Commercial names as legal tools and legal assets  154

Chapter 6 - Trademarks (Marks) in Turkish Law   155

I.        The place of trademarks in commercial life  155

II.       Historical development and sources of Turkish trademark law   156

III.      The legal framework and its institutional logic  158

IV.     The concept of a trademark: sign, distinctiveness, and representation  160

V.      Functions and types of trademarks  162

VI.     Registration and the structure of trademark acquisition  163

VII.   Priority, international registration, and the global dimension of trademarks  167

VIII.  Grounds for refusal and invalidity: public interest and private conflict 169

IX.     Rights conferred by registration and the scope of protection  172

X.      Use of the trademark, limitations, and exhaustion  174

XI.     Trademark transactions: assignment, licensing, and security interests  177

XII.   Trademark infringement and the architecture of enforcement 178

XIII.  Termination of trademark rights: expiry, invalidity, and revocation  181

XIV.  Concluding observations  182

Chapter 7 - Unfair Competition  (Haksız Rekabet) 183

I.   Why unfair competition matters in commercial life  183

II. Unfair competition, competition law, and contractual non-compete: three different logics  184

III.   Sources and systematic location of the rules in Turkish law   186

IV. The purpose clause and the general principle: the backbone of the system   188

V. The elements of unfair competition under the TCC   190

A.   A “commercial behaviour or practice”  190

B.   Deception or violation of good faith  191

C.   Effect on competitive relationships  192

D.   What is not required for “unfairness” and what is required for remedies  192

E.   Evidence, perspective, and the “overall impression” approach  193

VI.   The typical forms of unfair competition under  Article 55  193

A.   Dishonest advertising and sales methods  194

B.   Inducing breach or termination of contract 198

C.   Unauthorised use of another’s work products  199

D.   Unlawful disclosure of production and business secrets  200

E.   Failure to comply with business terms  201

F.   Using transaction terms contrary to good faith  202

VII.        Civil actions and remedies: how unfair competition is enforced  203

A.   Standing to sue and the protected interests  203

B.   The main civil claims under Article 56  204

C.   Procedural context: competent courts, mediation, and evidence tools  205

D.   Employer liability and the responsibility of media and platforms  206

E.   Publication of judgment, limitation periods, and interim measures  207

VIII.  Criminal liability: when unfair competition becomes a crime  209

IX.   Appendix: A brief overview of Turkish competition law (antitrust) and its relationship with unfair competition  210

X.   Conclusion: how to analyse an unfair competition problem   211

Chapter 8 - Commercial Agents and Other Merchant Assistants  213

I.   Acting in the market through others: why merchant assistants matter 214

A.   The economic rationale: scale, specialisation, and territorial reach  214

B.   The legal rationale: representation, risk allocation, and market trust 215

C.   Organ, legal representative, and assistant: a necessary distinction  216

II. A map of the institutions: classifications and  practical use  217

A.   Dependent and independent assistants  217

B.   Direct and indirect representation  217

C.   Continuity, territory, and professional activity  218

D.   How to qualify a relationship in practice  218

III.         Dependent merchant assistants  219

A.   Commercial representative (ticari temsilci) 219

1. Concept and legal nature  219

a.   Definition and policy function: the “alter ego” of the enterprise  219

b. Appointment, capacity, and internal legal basis  220

c.   Publicity through registration and why it matters  220

2. Scope of authority and typical limits  221

a.   General authority over enterprise transactions  221

b. Transactions excluded without special authorisation  221

aa. Dispositions over immovables and real rights  222

bb. Negotiable instruments, borrowing, and litigation  223

3. Limitation of authority and effects on third parties  223

a.   Territorial limitation and branch representation  223

b. Joint representation and signature rules  224

c.   The logic of protecting good-faith third parties  224

4. Termination and liability  225

a.   Ending the authority: revocation, resignation, and automatic termination  225

b. Liability for unauthorised acts and internal responsibility  225

c.   Illustration: authority in a real-life scenario  226

B.   Commercial proxy and other authorised employees (ticari vekil) 226

1. Definition and function  226

2. Appointment, publicity, and internal relationship  227

3. Scope of authority and statutory limits  227

a.   Ordinary transactions of the enterprise  227

b. Transactions requiring express authority: borrowing, negotiable instruments, and litigation  228

4.  Territorial aspect: acting mainly within the workplace  228

5. Termination and external effects  229

6. Illustration: the “branch manager” problem   229

C.   Marketing agent or travelling salesperson (pazarlamacı) 230

1. Concept and legal character 230

2. Elements: mobility, continuity, remuneration, and dependence  230

3. Authority in external relations: intermediary and contract-making marketing agents  231

4. Duties of the marketing agent: loyalty, reporting, and protection of the enterprise  232

5. Rights of the marketing agent: remuneration, expenses, and retention  232

6. Termination and post-termination issues  233

IV.         Independent merchant assistants  234

A.   Broker (simsar / tellal) 234

1. Concept and distinguishing features  234

2. Remuneration: the success principle and causation  234

3. Duties: information, loyalty, and neutrality  235

4. Termination and limitation  235

B.   Commission agent (komisyoncu) 236

1. Indirect representation: acting in one’s own name on another’s account 236

2. External relationship with the third party: who owns what and who is liable?  236

3. Internal relationship with the principal: duties of instruction, care, and accounting  237

4. Rights of the commission agent: commission, expenses, and retention  237

5. Self-contracting and conflict-of-interest issues  238

6. Termination and limitation  238

C.   Forwarding agent / transport commission agent (taşıma işleri komisyoncusu) 239

1. Function in modern trade  239

2. Contractual structure and applicable rules  239

3. Duties and rights of the transport commission agent 239

4. Liability for loss and damage; limitation and solidarity  240

D.   Commercial agency (acente) under the Turkish Commercial Code  241

1. Why agency is regulated separately  241

2. Definition and elements of agency (TCC Article 102) 241

a.   Independence and absence of organisational attachment 241

b. Continuous activity in a defined place or region  242

c.   Acting for contracts concerning a commercial enterprise  242

d. Intermediary agents and contract-making agents  242

3. Supplementary rules and field of application (TCC Article 102/2–3 and Article 103) 243

4. Exclusivity and conflict management (TCC Article 104) 243

5. The agent’s authority in external relations (TCC Articles 105–108) 244

a.   Authority to give and receive notices and protests (Article 105/1) 244

b. Procedural representation: suing and being sued (Article 105/2) 245

c.   Acts requiring special written authority (Article 106) 245

d. Contract-making authority and its registration (Article 107) 246

e.   Unauthorised contracts and ratification (Article 108) 246

6. Duties of the agent (TCC Articles 109–112) 247

a.   Duty of care and loyalty (Article 109) 247

b. Obligation to inform (Article 110) 247

c.   Precautionary duties regarding goods (Article 111) 248

d. Duty to transfer money and account (Article 112) 248

7. Rights of the agent (TCC Articles 113–119) 248

a.   Commission as the central right (Article 113) 248

b. Commission after termination: protecting the agent’s completed work (Article 113/3) 249

c.   When commission is earned and when it is lost (Article 114) 250

d. Amount and payment of commission; access to information (Articles 115–116) 250

e.   Expenses, interest, and retention right (Articles 117–119) 251

8. Duties of the principal (TCC Article 120) 252

9. Termination of agency and its immediate consequences (TCC Article 121) 252

10.              Portfolio compensation: the “equalisation” claim  (TCC Article 122) 253

a.   Legal idea and economic rationale  253

b. Conditions of the claim: benefit, loss, and equity (Article 122/1) 253

aa. Calculation and statutory cap (Article 122/2) 254

bb. Exclusions: fault and just cause (Article 122/3) 255

cc. Non-waivability and time limit (Article 122/4) 255

c.   Extension to exclusive distribution and similar relationships (Article 122/5) 255

d.  Illustration: a dispute about portfolio compensation and non-compete  256

11.              Post-termination non-compete agreements (TCC Article 123) 257

a.   Validity requirements and scope  257

b. Compensation for the restraint and waiver 257

c.   Fault-based release and mandatory character 258

12.              Drafting and compliance: building a legally reliable agency relationship  258

a.   Defining territory, products, and customer scope  258

b. Authority design and signature compliance  259

c.   Commission clauses and data transparency  259

d. Branding, marketing, and intellectual property  260

e.   Termination clauses, handover, and dispute avoidance  261

f.   Agency and competition law: exclusivity, non-compete, and market power 262

V. Exclusive distribution and other long-term merchant assistance arrangements  262

A.   Exclusive distributor (tek satıcı) as a contract type  262

B.   Distinguishing distributor, agent, commission agent, and franchisee  263

C.   Termination and fairness: why agency concepts influence distribution  264

VI.         A practical method for analysing merchant assistant problems  264

A.   Step one: qualify the relationship before applying rules  264

B.   Step two: identify the relevant authority rule and its publicity mechanism   265

C.   Step three: allocate risk and select the remedy  266

D.   Worked illustrations: how the method operates in practice  266

E.   Common misconceptions and how to avoid them   267

VII.        Conclusion  269

Chapter 9 - The Trade Register and Commercial Books  271

I.   The Trade Register 272

A.   The function of the trade register and the principle of publicity  272

B.   Institutional organisation and supervision of the register 273

C.   Matters subject to registration and publication  274

D.   Registration procedures: request, form, time limits, and the registrar’s examination  275

E.   Openness and publication: inspection rights and the Trade Registry Gazette  277

F.   Legal effects of registration and publication: opposability, reliance, and the allocation of risk  278

G.   Liability connected to the register: false declarations and registry responsibility  281

II. Commercial Books  283

A.   Commercial books as a legal institution  283

B.   The bookkeeping obligation: content, clarity and traceability  284

C.   The scope of commercial books: accounting books and corporate books  285

D.   Keeping books properly: language, integrity and electronic accessibility  287

E.   Inventory and financial reporting: accounting periods and Turkish Accounting Standards  289

F.   Relationship with tax law: dual compliance and coordination  290

G.   Retention and storage: preserving the documentary memory of the enterprise  292

H.   Submission and inspection in disputes: commercial books in litigation  294

I.    Evidential value and consequences of improper bookkeeping  296

J.    Conclusion: the documentary infrastructure of commercial life  298

Chapter 10 - International Commercial Sales Contracts  299

I.   International Commercial Sales Contracts as Legal and Commercial Structures  300

A.   Internationality and the structure of the transaction  300

B.   The contract as risk allocation, not merely exchange  301

C.   The role of standard terms, commercial customs and documentary practice  302

D.   Choice of law, dispute resolution, and the place of the CISG   302

E.   Delivery, risk and title as distinct legal concepts  303

F.   The centrality of payment terms  304

II. The CISG and the Law of the International Sale of Goods  304

A.   Background, policy goals and the place of the CISG in Turkish law   304

B.   The structure of the Convention and its systematic logic  305

C.   The conditions of application: when does the CISG govern?  306

D.   Party autonomy and the relationship between the CISG and domestic law   308

E.   Interpretation, good faith, and the role of usages  308

F.   Contract formation under the CISG: offer, acceptance and the reality of negotiation  310

G.   Seller's obligations: delivery, documents and conformity  311

H.   Buyer's obligations: payment, taking delivery and cooperation  313

I.    Remedies, breach and the concept of fundamental breach  314

J.    Notice, inspection and the management of non-conformity  315

K.   Cure, additional time, and the preservation of the contract 316

L.   The passing of risk under the CISG and its interaction with Incoterms  317

M. Anticipatory breach and instalment deliveries  318

N.   Exemption from damages: impediments, force majeure and hardship  319

O.   Matters excluded from the CISG and practical drafting implications  319

P.   A practical illustration: aligning CISG obligations with trade terms and documents  320

III.         Incoterms and Payment Methods in International Commercial Sales  321

A.   Incoterms: meaning, legal nature and contractual function  321

B.   The main Incoterms rules in practice: what they allocate and what they leave open  322

C.   Payment methods and the legal logic of documentary payment 322

D.   Concluding observations: integrating law, trade terms and finance  324

Chapter 11 - Negotiable Instruments Law in Türkiye  325

I.   The Concept and Legal Structure of Negotiable Instruments  326

A.   Documentary rights and the idea of incorporation  326

B.   Legitimacy, presentment, and the structure of disputes  328

C.   Negotiable instruments within the broader commercial law system   330

II. Types of Negotiable Instruments and the Logic of Transfer 331

A.   Bearer, to-order, and registered instruments  332

B.   Monetary, goods, and investment instruments  333

C.   Paper-based instruments and dematerialised rights  334

III. Transfer, Presentment, Defences, and Cancellation in the General Part 336

A.   Transfer mechanisms and the documentary chain of legitimacy  336

B.   The legal meaning of endorsement and common endorsement functions  338

C.   Presentment, surrender, and discharge of the debtor 339

D.   Defences and good faith: why underlying disputes do not always travel with the instrument 341

E.   Loss, theft, and judicial cancellation: restoring certainty when the document disappears  342

IV.         Bills of Exchange in Turkish Law: The Core Monetary Instruments  343

A.   The bill of exchange obligation: form, abstraction, and the independence of signatures  344

B.   The procedural dimension: why bills of exchange are enforced differently from ordinary claims  346

C.   Interaction with the underlying transaction and insolvency: instruments as credit technology  347

V. The Bill of Exchange (Poliçe): Structure, Operation, and Legal Effects  348

A.   Parties and the three-corner structure  349

B.   Formal elements and the meaning of strict form   349

C.   Acceptance: transforming the drawee into the principal debtor 351

D.   Endorsement and the network of secondary liability  352

E.   Aval: documentary guarantee as a tool of credit enhancement 353

F.   Maturity, presentment for payment, and the time structure of the bill 354

G.   Dishonour, protest, and recourse: enforcing the network of liability  355

H.   Limitation periods and the time sensitivity of bill obligations  356

VI.   The Promissory Note (Bono): The Dominant Instrument of Domestic Credit 357

A.   Structure and legal nature: a two-party bill of exchange instrument 358

B.   Formal elements, signatures, and the risk of blanks  359

C.   Payment, recourse, and enforcement: why promissory notes dominate practice  360

VII.  The Cheque (Çek): Payment through Banks and the Law of Dishonour 360

A.   The cheque relationship: drawer, drawee bank, and holder 361

B.   Formal elements and clauses that contradict the payment nature  362

C.   Presentment and payment: the cheque as a time-sensitive banking instrument 363

D.   Dishonour, protest equivalents, and the dual private-public character of cheque law   364

E.   Commercial practice and legal design: post-dating and security use  365

VIII.  Instruments Related to Bills of Exchange and Selected Contemporary Issues  366

A.   Bills similar to bills of exchange and other to-order bills: why form words matter 367

B.   Problem-solving with negotiable instruments: three illustrative scenarios  368

C.   Dematerialisation and information technology: negotiable-instrument logic beyond paper 369

D.   Enforcement as the practical backbone: why negotiable instruments are powerful in disputes  370

E.   Concluding synthesis: negotiable instruments as disciplined commercial trust 371

Chapter 12 - Company Law (Partnerships) in Türkiye  373

I.     Introduction  373

II.    Why company law matters: the legal and economic logic of doing business through a company  374

III.   The concept of a partnership and a company in Turkish law   375

A.   Company as a contract and as an organisation  375

B.   Company, commercial enterprise, and merchant: three related but distinct concepts  376

C.   Legal personality and separate assets  377

IV.   Sources and structure of Turkish company law   378

V.    Classification of business associations: ordinary partnership and commercial companies  379

A.   Numerus clausus of commercial company types  379

B.   Person companies and capital companies  380

C.   Ordinary partnership as a background model 381

D.   Legal personality, registration, and the trade register as the dividing line  381

VI.   Formation of commercial companies: from agreement to registration  382

A.   The company contract as a constitutive document 382

B.   The “establishment moment” and the emergence of legal personality  383

C.   Registration as a constitutive act and the role of the trade registry  384

D.   Mandatory provisions and the balance between flexibility and standardisation  385

VII. Contributions and capital: what partners bring, how value is measured, and why capital maintenance matters  385

A.   The legal meaning of “capital” in company law   385

B.   What can be contributed as capital: the breadth of permissible contributions  386

C.   Valuation of in-kind contributions and the role of expert appraisal 387

D.   Performance of the capital contribution obligation and remedies for default 387

E.   Capital maintenance and the prohibition of return of capital 388

VIII. Internal governance and external representation: who can bind the company?  389

A.   The organ principle and the distinction between management and representation  389

B.   Representation authority and its disclosure through the trade registry  389

C.   The business subject, the “ultra vires” problem, and the protection of third parties  390

D.   Fiduciary duties in governance: care, loyalty, and prudent management 391

E.   Minority protection and the problem of “internal inequality”  391

IX.         Person companies: the collective company and the limited partnership  392

A.   Why person companies still matter 392

B.   The collective company (kollektif şirket) 393

1. Concept and defining features  393

2. Formation and registration  393

3. Management and representation  393

4. Partner liability and the logic of creditor protection  394

5. Non-compete and loyalty obligations  394

6. Transfer of partnership interest, exit, and expulsion  395

C.   The limited partnership (komandit şirket) 395

1. Structure: general partners and limited partners  395

2. Formation, trade name, and registration  396

3. Management and representation  396

4. Liability of limited partners and the idea of the “liability amount”  396

5. Dissolution and liquidation  397

X. Capital companies I: the joint stock company  (anonim şirket) 397

A.   The joint stock company’s place in Turkish commercial life  397

B.   Definition and core legal consequences  398

C.   Purpose and subject, and the modern role of the business subject clause  398

D.   Minimum capital and the idea of “capital adequacy”  399

E.   Establishment and registration; the pre-incorporation liability bridge  399

F.   Capital contribution and payment rules: why the law insists on discipline  400

G.   Shares and membership: the structure of participation  401

H.   Corporate organs: general assembly and board of directors  402

I.    Representation, signature, and the binding effect of directors’ acts  403

J.    Shareholder duties beyond capital: the “no additional debt” principle  403

K.   Dividend distribution, reserves, and the discipline of lawful distributions  404

L.   Directors’ and founders’ liability: accountability mechanisms  404

M. Minority rights, judicial remedies, and the role of courts  405

N.   Exit, dissolution, and structural flexibility  405

XI. Capital companies II: the limited liability company (limited şirket) 406

A.   The limited liability company as a “hybrid” of capital and partnership logic  406

B.   Definition and core features  406

C.   Number of partners and the logic of a “closed” company  407

D.   The company contract: form, content, and mandatory rules  408

E.   Registration and legal personality; pre-registration liability  408

F.   Basic capital, capital shares, and the economic meaning of “membership”  409

G.   Additional payment obligations and ancillary performance obligations  409

H.   Transfer of basic capital shares and the controlled membership model 410

I.    Management and representation: managers, authority, and accountability  411

J.    Partner rights: information, voting, profit share, and protection against oppression  412

K.   Limited liability and its statutory and practical limits  412

L.   Termination, expulsion, and dissolution: continuity and crisis management in a closed company  413

M. Comparison with joint stock companies: choosing between AŞ and Ltd  414

XII.   Limited partnership whose capital is divided into shares: a hybrid capital company  414

XIII. Cooperatives: enterprise with a member-oriented purpose  415

A.   Why cooperatives are included in commercial company law   415

B.   Membership logic: openness, equality, and democratic governance  415

C.   Liability and financial structure  416

D.   Practical relevance and regulatory context 416

XIV.   Structural changes: amendments, capital changes, mergers, demergers, and conversions  416

A.   The dynamic nature of corporate life  416

B.   Amendments of the constitutive document 417

C.   Capital increases and reductions as structural tools  417

D.   Merger: combining enterprises through universal succession  418

E.   Demerger and conversion: splitting and transforming companies  418

XV.        Groups of companies and controlling undertakings  419

A.   Economic reality of corporate groups  419

B.   Concept of control and the identification of the controlling enterprise  419

C.   Protection of the subsidiary: compensation, reporting, and liability  420

XVI.      Termination, dissolution, and liquidation: how companies end  420

A.   Dissolution versus liquidation: conceptual distinction  420

B.   Grounds for dissolution in different company types  421

C.   Liquidation process and creditor protection  421

D.   Insolvency and bankruptcy: when termination is driven by inability to pay  422

E.   Continuation mechanisms: merger, conversion, and restructuring as alternatives to termination  422

XVII.    Concluding observations: learning to “read” company law problems  422

XVIII.   A statutory roadmap for further study  423

Bibliography  425