A foreign investor contributes EUR 2 million to a Turkish startup and receives 20% of the company. One year later, the founders decide that the company needs additional capital. New shares are issued. The foreign investor does not participate. Its ownership falls from: 20% to 12%. Has the investor been unlawfully diluted? Not necessarily. Share […]
SEO Title: How Can Foreign Investors Protect Minority Shares in a Turkish Startup? Meta Description: Foreign minority investor in a Turkish startup? Learn how to protect your investment through board rights, vetoes, information rights, pre-emption, anti-dilution, special audit, tag-along and legal remedies under Turkish law. Suggested URL Slug: protect-minority-shareholding-turkish-startup A foreign investor does not need […]
A foreign investor may enter a Turkish startup or privately held company based not only on its revenue but also on the assets, intellectual property, customer relationships, employees, licences, contracts and business infrastructure held by that company. A serious problem may arise when, shortly before the investor’s planned exit, the founders begin transferring those assets […]
A Practical Legal Guide to Share Dilution, Pre-Emptive Rights and Minority Shareholder Protection Under Turkish LawLast Updated: August 2026 A foreign investor may acquire 10%, 20%, 30% or even 49% of a Turkish company and reasonably expect that percentage to represent its continuing economic and voting position. However, one of the most significant risks faced […]
Dividend Rights, Minority Shareholder Protection and Legal Remedies Under Turkish Law A foreign investor acquires shares in a profitable Turkish company. The company performs well. Revenue increases. Financial statements show substantial annual profits. Yet the investor receives no dividend. Management explains that: “The company needs the money.” The same explanation is given the following year. […]
A Practical Legal Guide for Foreign Investors and Minority Shareholders in Turkish Companies A foreign investor acquiring shares in a Turkish company does not surrender control over their legal rights simply because another shareholder holds the majority of the voting power. In Turkish corporate law, the general assembly is one of the company’s most important […]
Legal Remedies for Foreign Investors Locked Out of a Turkish Company A foreign investor acquires 20%, 30% or even 49% of a Turkish company. At the beginning, the relationship appears straightforward. The investor is promised access to financial information, involvement in major decisions and perhaps a seat on the board of directors or a management […]
A Practical Legal Guide to Minority Shareholder Protection, Forced Exit and Squeeze-Out Rights in TürkiyeLast Updated: August 2026 A foreign investor may enter a Turkish company by purchasing 10%, 20%, 30% or even 49% of its shares while the founders or another investor continue to hold the majority. A common concern then arises: Can the […]
Shareholder Information Rights and Legal Remedies Under Turkish Corporate Law A foreign shareholder investing in a Turkish company may sometimes discover that acquiring shares is easier than obtaining information after the investment. Problems frequently arise where the majority shareholders or company managers control the accounting department, bank accounts and corporate records and begin excluding the […]
Foreign investors frequently acquire minority or majority shares in Turkish companies without taking an active role in the day-to-day management of the business. At first, the relationship between the shareholders may function smoothly. However, problems often arise when the foreign investor begins receiving incomplete financial information, cannot verify company expenses, suspects that money is being […]