LEGAL ISSUES OF CORPORATE GOVERNANCE IN MODERN TURKEY

Introduction. The article delves into the system of corporate governance in Turkey which has been introduced by the new Commercial code.

Materials and methods. The article is based on the analysis of various sources of law in Turkey as well as on analytical papers of Turkish lawyers. The author uses comparative, axiomatic and synergetic methods in order to conduct the research.

Results. The reform of corporate law in Turkey created a modern effective system of corporate governance comparable to those existing in Europe and the USA. The changes include such important issues as protection of minority shareholders, legal status of the board of directors and agent-principal dilemma. Special attention was paid to the digitalization of corporate governance. As a result this reform has already enhanced the performance of Turkish companies notwithstanding political turmoil in the country.

Discussion and conclusions. The article makes the first step in the study of Turkish corporate law, proves that corporate governance in Turkey uses European and American laws as a model, identifies the potential risks that might emerge because of the mistakes made during the reform.

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