Commercial Activities during Liquidation Proceedings

Liquidation of the company is required to be registered in competent trade registry. As from commence of liquidation, authorities of the organs of the company shall be limited to the proceedings to be performed only for the purposes of liquidation according to Article 533 of Turkish Commercial Code. This Article is applicable for the liquidation of both joint stock companies and limited liability companies, from commence of liquidation, Organs may only perform the transactions mandatory for liquidation which cannot be fulfilled by the liquidation officer. The liquidation officer is obliged to review the financial status once he/she assigned for this position and he/she cannot perform any new transaction which is not required for liquidation.

Therefore, from both tax and legal aspects, it is the general rule that a company in liquidation cannot perform any commercial activities out of the scope of the liquidation proceedings. As an exemption, the liquidation officer may complete the ongoing transactions of the company.

For further information please contact onder.budak@budaklegal.com

Bibliography

1) https://www.mevzuat.gov.tr/mevzuat?MevzuatNo=6102&MevzuatTur=1&MevzuatTertip=5