Basic Requirements For Registered Stock Certificates
Turkish Commercial Code Nu.6102 (TCC) clearly states rules for the features and transfer of registered stock certificates. Misobey of these rules will make the certificate and transfer void. Because, registered stock certificates are strictly governed by Law in Turkey.
Mandatory Features
Registered stock certificates issued by a joint-stock company must include specific information as per Article 487 of the TCC, such as the company’s name, capital at the time of establishment, the date of certificate issue and registration, type and nominal value of the certificate, number of shares, and the owner’s details including name and residence, among other things, and must be signed by at least two authorized company officials.
Conversion and Transfer
Registered shares can be converted to bearer shares if the company amends its articles of association and the full price of the shares is paid, as stipulated by Article 485 of the TCC. Regarding the transfer of registered shares, Article 490 states that registered shares can generally be transferred without restrictions unless otherwise specified, by endorsing and delivering the stock certificate to the transferee.
Thus, the mechanics and legal requirements of issuing and transferring registered shares in Turkey are designed to ensure transparency, shareholder rights, and regulatory compliance in the corporate sector.
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