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LOANS TO SHAREHOLDERS AND ADAT INVOICE
In practice, it is quite common for companies to extend loans to their shareholders. In situations where the company becomes a creditor of its shareholders, adat interest must be calculated on the outstanding balance and an invoice must be issued. Accordingly, adat is a method used to calculate accrued interest based on the period during which company funds are utilized by shareholders or related parties, ensuring that any potential tax loss is compensated. These calculations are important for compliance with transfer pricing rules, accurate determination of the tax base, and the fulfillment of legal obligations such as Value Added Tax (“VAT”).
NOTIFICATION PROCESS TO THE CENTRAL SECURITIES DEPOSITORY & TRADE REPOSITORY OF TÜRKIYE FOR BEARER SHARE CERTIFICATES AND LEGAL CONSEQUENCES
1. Issuance and Notification of Bearer Share Certificates Pursuant to Article 484 of the Turkish Commercial Code ("TCC"), joint stock companies have two types of share certificates: registered shares and bearer shares. While the transfer of registered shares is completed through delivery, certain conditions have been introduced under the Communiqué on the Notification and Registration of Bearer Share Certificates with the Central Securities Depository ("Communiqué") for the transfer of bearer shares. Within the scope of the Communiqué, the registration of bearer shares with the Central Securities Depository & Trade Reposıtory of Türkiye ("MKK"), the adoption of a board resolution, and the registration and announcement of this resolution before the relevant trade registry directorate and in the Turkish Trade Registry Gazette are required.
