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Is the draft Turkish Commercial Code an appetite-killer for foreign investors?

Tolga Ismen
Ismen Law Firm
Istanbul

M&A transactions contribute significantly to foreign direct investment into Turkey. Most of the big international companies entered into the Turkish market through either buyouts or joint ventures. The transaction documents used in these deals are at times governed by foreign laws such as English or Swiss law. However, Turkish law plays a significant role in the enforcement of certain rights under such transaction documents, especially those under shareholders' agreements. In the past, there were some good and bad examples with respect to the enforceability of such rights. Turkey is on the brink of adopting a new commercial code (CC), following which the possibility and means of enforcing such rights will change dramatically overnight.

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Turkey
Middle East (Regional Rankings)

Legislation guide

Is the draft Turkish Commercial Code an appetite-killer for foreign investors?

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