What are preferred shares?

What is a Preferred Share? | Lawyer in Izmir

What are preferred shares?

prerogative

Arabic privilege

1. name A special, personal right or condition not granted to others; privilege.

2. name, law A special permit granted by the state to an individual or organization to establish a factory, operate a mine, etc.

3. name, date Breach.

Türk Ticaret Kanunu kapsamında, şirket esas sözleşmesi ile birlikte kimi paylara bir takım “imtiyaz”, yani ayrıcalıklar tanınabilir. Bu imtiyazlı paylar, esas sözleşmede düzenlendiği üzere kar payı, tasfiye payı, rüçhan ve oy hakkı gibi haklarda normal paylarda mevcut olmayan yeni bir hakkın tanınmış olduğu paylardır.

Exceptions to the Preferred Share Arrangement

In joint-stock companies whose capital is more than half owned, either individually or jointly, by the State, provincial special administrations, municipalities and other public legal entities, trade unions, associations, foundations, cooperatives and their umbrella organizations, and in their subsidiaries in which they hold an equal share of the capital, no privileges regulated in this Law may be granted to other shares, to shareholders forming a specific group, to specific groups of shareholders, or to the minority, except for the privileges that may be granted to the shares held by these entities. This provision does not apply to joint-stock companies whose shares are traded on the stock exchange, to credit institutions and financial institutions defined in Article 3 of Law No. 5411.

Privilege in Voting

Türk Ticaret Kanunu Madde 479 kapsamında, “oyda imtiyaz”, eşit itibarî değerdeki paylara farklı sayıda oy hakkı verilmesi olarak tanımlanmaktadır. Kanun kapsamında bir paya en çok onbeş oy hakkı tanınabilmekte olup; bu sınırlama, kurumlaşmanın gerektirdiği veya haklı bir sebebin ispatlandığı durumlarda uygulanmaz.

If institutionalization is required or a justifiable reason exists, the primary commercial court in the location of the company's headquarters must examine the institutionalization project or the justifiable reason and, based on these, issue a decision granting an exemption from the restrictions. Any changes to the project are subject to a court decision. If it is determined that institutionalization will not take place or the justifiable reason ceases to exist, the exemption decision may be revoked by the court.

Voting privilege cannot be used in the following decisions:

• Amendment to the articles of association.
• Filing a lawsuit for release from liability and responsibility.

Supreme Court Decisions

Supreme Court 11th Civil Chamber, October 28, 2004, Case No. 2003/13857 E., Decision No. 2004/10455 K.

According to Article 389 of the Turkish Commercial Code (TTK), a decision taken by the general assembly of a joint-stock company regarding an amendment to the articles of association that restricts the rights of preferred shareholders cannot be enforced unless it is approved by a resolution of the preferred shareholders at a special meeting. Since lawsuits filed by preferred shareholders seeking the annulment of general assembly decisions based on the grounds that they were not approved by a resolution of the preferred shareholders, contrary to the provisions of Article 389 and Article 391 of the same Law, do not constitute annulment of the general assembly decision within the meaning of Article 381 of the TTK No. 6762, they are not subject to the three-month statute of limitations stipulated in that article.

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