Being a shareholder in a limited liability company does not mean that a person must remain trapped in the company indefinitely. This becomes particularly important in closely held Turkish limited companies where one shareholder controls management, bank accounts, accounting records and day-to-day operations while the minority shareholder gradually becomes excluded from the business. Typical complaints […]
A company manager has authority to represent the company. But does that authority allow the manager to sell company property to his brother, spouse, child, friend or another company controlled by someone close to him? Consider a typical dispute. A Turkish limited liability company owns: Relations between the shareholders deteriorate. The managing shareholder controls the […]
Introduction A company can remain legally alive while becoming practically impossible to operate. This is particularly common in closely held Turkish limited liability companies where two shareholders founded the business together, both participate in management, and the corporate structure was originally built on personal trust. Once that trust disappears, ordinary disagreements can develop into a […]
In high-net-worth divorce cases, the most valuable assets are not always apartments, bank accounts or company shares. A garage may contain a Ferrari purchased during the marriage. A spouse may own several Rolex, Patek Philippe or Audemars Piguet watches. Jewellery worth millions of Turkish lira may be kept in a bank safe-deposit box. Paintings, sculptures, […]
Owning 20%, 30% or even 40% of a profitable company may look valuable on paper. In practice, however, a minority shareholder in a Turkish limited liability company may suddenly discover that the majority shareholder controls almost everything that matters. The minority shareholder may stop receiving financial information. General meetings may be held without proper notice. […]
A shareholder owns 25% of a profitable Turkish company. Relations with the majority shareholder deteriorate. Months later, the minority shareholder discovers through the Trade Registry Gazette that the company’s capital has been increased dramatically. The majority shareholder subscribed to almost all of the newly issued shares. The minority shareholder’s interest has fallen from 25% to […]
A common misconception in Turkish divorce and matrimonial property disputes is that a real estate asset becomes untouchable once it is registered in the name of a company. The scenario is increasingly common. One spouse owns or controls a limited liability company or joint-stock company. During the marriage, the company purchases an apartment, office, commercial […]
When a spouse controls a company, one of the most serious risks before divorce is not necessarily the transfer of the company shares themselves. The controlling spouse may leave the shares formally untouched while withdrawing cash, transferring funds to relatives, increasing shareholder current accounts, paying unusual management expenses, lending money to affiliated companies or moving […]
When divorce involves significant wealth, one of the first questions is often not what assets exist in Turkey, but what may exist abroad. A bank account in Switzerland, Germany, the United Kingdom, the United States, the United Arab Emirates or another jurisdiction may contain savings accumulated during marriage, investment proceeds, salary income, company distributions or […]
A common dispute in Turkish divorce proceedings begins with a seemingly simple statement: “Yes, we bought the house during the marriage, but my parents paid for it.” At first glance, many spouses assume that any property purchased during marriage must automatically be divided between the spouses. Under Turkish matrimonial property law, however, the date on […]