Joint stock companies, one of the most important actors of commercial life in Turkey, offer advantages such as limited liability and share transfer for investors and entrepreneurs. However, the management of joint stock companies is highly sensitive to legal regulations and procedures. Therefore, working with a joint stock company lawyer responsible for the establishment, management, contracts and litigation of joint stock companies ensures that companies operate successfully and legally.
What is a Joint Stock Company?
A joint stock company is a commercial company in which the liability of its shareholders is limited to the capital they contribute and the shares can be traded on the stock exchange. Joint stock companies have special regulations regarding capital structure, management style and shareholders’ rights. According to the Turkish Commercial Code, joint stock companies can operate by complying with certain legal procedures. This type of company is often preferred by large corporations, international firms and investors.
Characteristics of Joint Stock Company
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Capital: Joint stock companies must be established with a certain capital and this capital is divided into shares. The company’s liabilities are limited to this capital.
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Shareholders: Joint stock companies can be managed by more than one shareholder. The liability of shareholders is only up to the share capital of the company and they cannot be held liable for their personal property.
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Management: The management of the joint stock company is carried out by the board of directors. The election of the board of directors is made by the general assembly.
Incorporation and Legal Procedures
Certain legal procedures must be followed to establish a joint stock company. This process includes all the legal arrangements necessary to start the company’s activities. Legal assistance may be needed in setting up a joint stock company, as this process is highly technical and subject to certain legal requirements.
Preparation of the Company’s Articles of Association
Before starting the company’s activities, it is necessary to draft the articles of association of the joint stock company. The articles of association include the company’s field of activity, the rights of shareholders, the capital structure of the company, the form of management and other important regulations. The correct preparation of this agreement prevents legal problems that may arise in the future.
Determination of Capital Shares
A certain capital is required for the establishment of joint stock companies. The capital is divided among the shareholders according to certain ratios. These shares ensure a balance of rights and responsibilities between the founders of the company. The correct determination of the capital structure ensures that the company is based on a sound financial and legal foundation.
Notarization and Trade Registry Registration
After the articles of association are drafted and signed, the incorporation of a joint stock company is subject to notarization and trade registry registration. After these registrations, the company has a legal existence and can start its activities.
Tax Identification Number and Permits
After the company is established, tax liability must be initiated and the necessary permits for the sector in which the company operates must be obtained. The tax identification number to be obtained from the tax office is necessary for the company to fulfill its legal obligations.
The Role of the Joint Stock Company Lawyer
A joint stock company lawyer plays an important role at every stage of company formation, maintaining the company’s activities within the legal framework and resolving legal issues related to the company. Here are the main tasks undertaken by a joint stock company lawyer:
Legal Support during the Establishment Phase
The establishment of a joint stock company requires complex legal procedures. Having the support of a lawyer during the creation of the legal structure of the company, the drafting of its articles of association and the fulfillment of legal obligations ensures the correct completion of the process.
Preparation and Review of Contracts
Contracts with third parties with whom the company will do business must comply with the law. During the preparation and review of these contracts, a joint stock company lawyer ensures that the contract is organized in a way that protects the rights of the parties.
Organizing Board of Directors and General Assembly Meetings
In joint stock companies, board meetings and general assembly meetings must be held in a certain order. Holding these meetings within the legal framework is important for the validity of the decisions. Lawyers ensure that these meetings are held in accordance with legal requirements.
Tax and Commercial Law Consultancy
Joint stock companies carry various obligations related to tax liabilities and commercial laws. A joint stock company lawyer ensures that the company complies with tax laws and helps resolve issues related to commercial law.
Management of the Company and Resolution of Disputes between Shareholders
Management disputes within the company or disputes between shareholders can sometimes disrupt the company’s operations. A corporate lawyer can help resolve such disputes and protect the legal rights of the parties.
Mergers and Acquisitions
In large joint stock companies, mergers or acquisitions are common. These processes can affect both the legal structure and the financial position of the company. Lawyers ensure that mergers and acquisitions are carried out in a legally correct manner.
Contact Us
If you are planning to establish a joint stock company in Istanbul, if you want to manage your existing company in accordance with the law, or if you are facing any legal issues related to your joint stock company, it would be beneficial to work with a professional joint stock company lawyer. We are at your side at every stage of your business life by providing legal consultancy and advocacy services for joint stock companies in Istanbul.
