Turkey’s Commerce Code now allows third parties to be company signatories in certain cases; our Turkish corporate secretarial expert explains.
The local trade registry has started to implement article 367 referring to the internal directive on limited authorities of signatories for both Limited Liability Companies (LLC) and Joint Stock Companies (JSC). Keep this in mind when renewing or appointing new signatories with limited authorities.
As per articles 367, 371 and 629 of the Turkish Commerce Code, the below mentioned article 367 is now applicable for company signatories:
The board of directors will be authorised to delegate full or part of their authorities to the third parties with an internal directive including the limited authorities, the duration and location of their limited authorities.
With this change, an internal directive should be prepared by the general assembly or boad of directors in order to appoint a company signatory in the LLC or JSC with limited signature authorities. The articles of association of the company should also allow the same.
The company should ensure that the articles of association allows the company to issue an internal directive to authorise signatories with limited authorities that requires registration and announcement with the local trade registry.
Read more about doing business in Turkey